Solution 7.2

Exempt and zero rated activities

Exempt activities include activities such as providing education, hospital and insurance services.  Organisations that carry on exempt activities are not required to charge vat on the sale of goods and services and do not get a refund of VAT paid on their expenses and outgoings. Should turnover be less €51,000 (goods) €25,500 (service) the business is treated as exempt for vat purposes.

Zero rated activities include activities such as food, medicine and children’s clothing. Organisations that carry on zero rated activities charge vat on the sale of their products or services at the rate of 0%. A refund for any vat paid on the normal outgoings of the business is claimed from the Revenue Commissioners.