Nov 052007
Some supplies are exempt from VAT, such as insurance, finance and education. If you ONLY supply exempt goods/services, you will be exempt from VAT and will be unable to register for VAT. This also means that you will be unable to reclaim any VAT from your purchases.
If part of your supplies are exempt, you will still be able to register for VAT and may be able to claim a proportion of your input VAT (VAT on your purchases)
