What is VAT?

Exemption from VAT

In general, a taxable person supplies only exempt activities (goods or services).

In respect of such exempt activities a taxable person is not entitled to register for VAT.

However, a trader of exempt supplies  may be required to register and account for VAT in respect of intra-Community acquisition and services from abroad. 

Likewise, a taxable person who also supplies taxable goods or services may be required to register for VAT.

However, VAT registration relates to your taxable supplies.

Therefore, if you carry out both exempt and taxable activities, you can only reclaim VAT relating to your taxable activities.

For special provisions relating to property, see our VAT section on property and construction.

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