VAT exempt means that for something you don’t have to pay or charge VAT.
When you need to care about VAT exempt services if you’re self-employed:
- If you provide them, you don’t need to register for VAT and charge VAT for them (even if you earn over the VAT threshold of £90,000)
- If you purchase them, you can’t claim back VAT from HMRC
Example of goods and services that are VAT exempt:
- Education and training
- Fundraising events
- Finance, like interest on loans or insurance
- Subscriptions or memberships
