Is rent paid to a non-VAT vendor standard rated supply, zero rated supplies, exempt supplies or non-allowable item VAT supply category ?

A non-VAT vendor is not registered with the tax authority for VAT purposes. This means they are legally unable to charge VAT on the goods or services they supply.

• Standard-rated supply and zero-rated supply are categories for supplies made by VAT-registered vendors where VAT is charged (either at the standard rate or 0%). Since the vendor is not VAT-registered, they cannot make these types of VAT supplies.
• Exempt supplies are specific types of supplies that are free from VAT, even when made by a VAT-registered vendor. However, in this case, the reason no VAT is charged is because the vendor is not registered, not because the supply itself is exempt.

Since the non-VAT vendor cannot charge VAT, no VAT is included in the rent payment. Consequently, the recipient of the supply (the tenant) cannot claim any input VAT on this expense because no VAT was paid. Therefore, from the perspective of the recipient's VAT accounting, it is an item where no VAT is allowable for deduction.

The most appropriate category among the given options is:

• Non-allowable item VAT supply category

This option best describes an expense where no input VAT can be claimed because no VAT was charged in the first place.