What is Value-Added Tax (VAT)?
Exemption from VAT
Where a taxable person supplies only exempt goods or services, they are not generally entitled to register for Value-Added Tax (VAT).
However, in specific circumstances the trader may be required to register and account for VAT. This occurs where the trader makes intra-Community acquisitions, or is in receipt of 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, please see the VAT section on property and construction.
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