SN028·Reduced rate goods sold to end consumers by retailers

What it covers

Certain essential goods — infant formula and books are typical examples — carry a reduced rate intended to keep them affordable. The classification has to be correct for the relief to apply.

Who needs to test this

Taxpayers registered as retailers.

Payload notes

• The schedule reference and item serial number are required, as with any non-standard rate.
• Extra tax must be absent on reduced-rate lines.

Common pitfalls

• Products must genuinely fall within the classification. A commercial description as an essential good is not sufficient.
• Requires retailer status.

Errors you may hit

• 0077SRO or schedule number is required where the rate is not standard
• 0078Item serial number is required where an SRO is provided
• 0091Extra tax must be empty for reduced rate goods

Which registrations require this

Activity and sector combinations that must pass SN028 in sandbox, per FBR’s published mapping.

Reference mapping only. The eligible-scenarios view inside your own sandbox environment is authoritative for your registration.

Related scenarios

• SN005Sale of goods at a reduced rate
• SN026Standard rate goods sold to end consumers by retailers
• SN027Third Schedule goods sold to end consumers by retailers