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 £85,000)
- 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
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