Exempt Supplies for VAT Purposes
Some goods and services are exempt from VAT, such as insurance and finance, education and training, and charitable fund-raising events as listed below.
If some of the goods or services you supply are exempt from VAT this can affect how much VAT you can reclaim on your purchases.
If all of the goods and services you sell are exempt, your business is exempt and you would not be able to register for VAT. This means you would not be able to reclaim any VAT on your business purchases.
If you are VAT-registered and incur any input tax that will be used to make exempt supplies, you are classed as partly exempt.
Items that are exempt from VAT include the following:
- financial services
- educational services
- rental of residential property for dwelling
- sale of real property
- international transportation
- domestic transportation of goods and passengers
- locally produced agricultural products by the producer
- water for domestic use
- supply of electricity for residential use
- daycare services
- certain supplies of goods or services by the State, or Nevis Island Administration if the consideration for the supply is nominal in amount or not intended to recover costs as determined by the Comptroller
- a supply of any goods or services by an approved Charitable Organisation, or an association not for gain in connection with a taxable activity, where the consideration for the goods or services is nominal in amount or not intended to recover the cost of such goods or services as determined by the Comptroller
- a supply of religious services by an institution of religious worship
- a supply of basic construction services on a dwelling and
- a supply of medicines for chronic diseases such as HIV/AIDS, Diabetes, Hypertension/Cardiovascular diseases, Asthma, Renal Disease, Cancer and Mental Illness approved by the Chief Medical Officer and as described in regulations made under this Act.