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