Some goods and services are exempt from VAT, depending on the sector and country you are selling within. VAT exemptions vary across the world, but some common examples of VAT-exempt goods and services include:

• Education and training
• Insurance, finance, and credit
• Fundraising events by charities
• Medical treatments provided by hospitals
• Subscriptions to membership organizations
• Selling, leasing, and letting of commercial land and buildings

In addition, some countries have special schemes that enable businesses to trade under certain conditions without the need to charge VAT. If a company makes taxable supplies of goods or services below a certain annual limit, it may be exempt from VAT.

Its important to note that if a supply is exempt from VAT, it means that it is not taxable. This means that you shouldnt include VAT in the price of any exempt items that you sell, and you cant reclaim VAT on any exempt items that you purchase. Sales of VAT-exempt products dont count towards your VAT taxable turnover, and you dont need to keep VAT records for VAT-exempt sales.