Yes, it is a little bonkers. But this is important, as it can determine whether you need to register for VAT.
Ok, so what is exempt from VAT?
There’s a variety of VAT exempt services such as:
- Financial services
- Insurance sales
- Income from rental properties
- Building sales
- Winning on the lottery, betting or gaming
Alongside services, certain goods are also VAT exempt, as are grants and services with a supply origin outside the UK.