Common VAT-exempt items and services are generally not subject to Value Added Tax, meaning no VAT is charged to the customer, but sellers cannot reclaim VAT on related costs. Key examples include financial services, education and training, healthcare, non-profit fundraising, and commercial property rentals.
Common Types of VAT Exempted Supplies
Examples of VAT exempt goods and services
Frequently asked questions
What items are eligible for a VAT refund? Typical Recoverable Expenses are:
The United States Government does not refund sales tax to foreign visitors. The foreign country in which you paid the Value Added Tax (VAT) is responsible for refunding the tax. Some countries won't refund after the fact, so check with the Foreign Embassies & Consulates office of the country you visited.
Navigating VAT obligations can be particularly complex for online businesses, especially those selling across borders. Common mistakes—such as failing to register in the correct countries, applying the wrong VAT rates, or missing important filing deadlines—can lead to serious financial and legal consequences.
You cannot reclaim VAT for: anything that's only for personal use. goods and services your business uses to make VAT -exempt supplies. the cost of entertaining or providing hospitality to people you do business with (for example theatre or sports tickets)
Exempt goods and services include many basic necessities such as food items, healthcare, and educational services. Unlike zero-rated goods, businesses dealing with exempt goods cannot claim a credit for the GST paid on inputs used to make these products.
To get the product VAT free your disability has to qualify. For VAT purposes, you're disabled or have a long-term illness if: you have a physical or mental impairment that affects your ability to carry out everyday activities, for example blindness. you have a condition that's treated as chronic sickness, like diabetes.
Exempt goods and services
There are some goods and services on which VAT is not charged, including: insurance, finance and credit. education and training. fundraising events by charities.
Shipping your purchases home directly from the retailer is another way to avoid paying VAT, but the added cost may outweigh any savings. You can try to get your VAT refund through the mail but the process takes much longer and can be unreliable. Most people submit their requests at the airport on their way home.
How to apply
If something is exempt from VAT, it's usually because the product is considered to be an essential good or service. HMRC has a full list of VAT-exempt products, but some of the main goods and services that are exempt from VAT include: Sporting activities and physical education. Education and training.
Goods Exempt
Costs that are exempt for VAT don't have VAT on them. Examples include: all services provided by a post office, such as postage and stamps. insurance and other financial services.
GST-Free Items:
Zero-rated supplies are supplies of property and services that are taxable at the rate of 0%. This means there is no GST/HST charged on these supplies, but GST/HST registrants may be eligible to claim ITCs for the GST/HST paid or payable on property and services acquired to provide these supplies.
Common examples of VAT-exempt items or services include: Education: Educational services, such as those provided by schools, universities, and vocational training centers, are often VAT-exempt. Healthcare: Medical services, hospital care, and the supply of certain medical products may also be exempt from VAT.
Usually, your purchase must be over a certain amount in order to qualify for a VAT refund. In the EU, for example, you have to buy at least 175 euros worth of stuff in a shop. European Commission: Taxation and Customs Union. Guide To Vat Refund For Visitors To The EU.
Claiming VAT back - what you can claim for
Agricultural products, tuition fees, lending operations, real estate, books, transportation and other necessities are typically VAT-exempt transactions.