Overview of exemption

V4.101 Meaning of 'exemption'

Tax is charged on any supply of goods or services which comprises a taxable supply made in the UK by a taxable person in the course or furtherance of any business carried on by him1. A taxable supply for this purpose is a supply of goods or services made in the UK other than an exempt supply2. Thus no tax is charged on an exempt supply.

A supply of goods or services is an exempt supply if it is of a description for the time being specified in VATA 1994, Sch 93, which is derived from Directive 2006/112/EC, arts 131–136 (and art 137 in relation to the option to tax certain otherwise exempt supplies4). Exemption also applies to an acquisition of goods from another member state if the goods are acquired in pursuance of an exempt supply5.

Schedule 9 is divided into 16 'groups', each of which has a descriptive title. Groups are sub-divided into 'items' and have one or more 'notes' thereto.

The groups specified in the schedule

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