The main difference between zero rate and exempt supplies is that the suppliers of zero-rated goods and / or services can still reclaim all their input VAT, but the suppliers of exempt goods are either not registered for VAT or if they are, they cannot reclaim their input VAT.
What things are exempt from VAT?
Overview. Some goods and services are exempt from VAT. If all of the goods and services you sell are exempt, your business is exempt and you won’t be able to register for VAT. This means you can’t reclaim any VAT on your business purchases or expenses.
What does no VAT mean?
no vat usually means the vehicle is not subject to vat. ie being purchased from a private individual. If it’s from a trader who is vat registered it would mean it was purchased from a person who wasn’t vat registered therefore no vat was chargable. VAT can npt be charged on an item where the vat has already been paid.
Is insurance no VAT or exempt?
Insurance transactions are exempt from VAT. Normally VAT cannot be recovered on goods and services bought in to make exempt supplies, see paragraph 7.1 for more information. Some premiums received under contracts of insurance are liable to IPT .