Which of the following is considered a zero-rated supply for VAT purposes?

Non-luxury food is classified as a zero-rated supply for VAT purposes because it is considered an essential item that is exempt from VAT to reduce the financial burden on consumers. This encourages access to basic food necessities without additional taxes, which aligns with many governments' objectives to support public welfare and ensure affordability.

In many jurisdictions, items like non-luxury food fall under the category of zero-rated goods, meaning that while no VAT is charged on their sale, businesses can still reclaim VAT paid on inputs used to produce or sell these goods. This encourages businesses to supply essential items while promoting compliance with tax regulations.

Luxury automobiles, commercial real estate, and premium bank services typically do not qualify as zero-rated supplies. These items and services are often subject to standard VAT rates because they are considered non-essential or luxury expenditures, and governments generally do not provide the same level of tax relief for them.