Which of the Following Statements Related to Fully Taxable and Zero-Rated

Multiple Choice

Which of the following statements related to fully taxable and zero-rated supplies in a participating province is correct?

A) Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Expenditures related to both types of supplies are eligible for input tax credits.
B) Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Input tax credits are available on only expenditures related to fully taxable supplies.
C) Both types of supplies are taxed at the HST rate. Input tax credits are available on only expenditures related to fully taxable supplies.
D) Fully taxable supplies are taxed at the HST rate and zero-rated supplies are taxed at 0.0 percent. Input tax credits are available on all expenditures related to fully taxable supplies and on only capital expenditures related to zero-related supplies.