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Legal Terms - exempt supply
A supply that is specified by the Value Added Taxes Act
1994 as being exempt from a charge to *value-added tax. Schedule 9 of the
Act specifies exempt supplies in 13 main groups (plus three minor
categories):
Group 1: land;
Group 2: insurance;
Group 3: postal services;
Group 4: betting, gaming, and lotteries;
Group 5: finance;
Group 6: education;
Group 7: health and welfare;
Group 8: burial and cremation;
Group 9: trade unions, etc. subscriptions;
Group 10: sport and physical education;
Group 11: charity events;
Group 12: cultural services;
Group 13: investment gold.
V AT that is paid on purchases that lead to an exempt supply is not
recoverable as input tax. By contrast, V AT paid on purchases that lead to a
*zero-rated supply is recoverable input tax
A supply that is specified by the Value Added Taxes Act
1994 as being exempt from a charge to *value-added tax. Schedule 9 of the
Act specifies exempt supplies in 13 main groups (plus three minor
categories):
Group 1: land;
Group 2: insurance;
Group 3: postal services;
Group 4: betting, gaming, and lotteries;
Group 5: finance;
Group 6: education;
Group 7: health and welfare;
Group 8: burial and cremation;
Group 9: trade unions, etc. subscriptions;
Group 10: sport and physical education;
Group 11: charity events;
Group 12: cultural services;
Group 13: investment gold.
V AT that is paid on purchases that lead to an exempt supply is not
recoverable as input tax. By contrast, V AT paid on purchases that lead to a
*zero-rated supply is recoverable input tax
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