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Conducting non-taxable sales

Learn how to determine if your sale is exempt from tax.

While most items and transactions are taxed, some aren't. Generally, you're not required to collect VAT for the following items.

Note: Always check with your tax authority as to which goods and services are subject to VAT

Resold items

Retailers don't typically have to pay VAT on wholesale purchases. It's assumed that the end consumer will pay VAT on these items at the point of purchase.

Raw materials

If you produce and sell goods that will be used as raw material for other goods, these items are typically considered VAT exempt.

Transactions with non-profit organisations

Sales made to non-profit organisations are normally exempt from VAT If you're involved in these types of transactions, you'll need to get a copy of the buyer's tax-exempt certificate or number .

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