If I make exempt supplies, do I need to register?
If all the supplies you make are exempt, you do not have to register for value-added tax (VAT). In such a case, you cannot recover the tax incurred on business purchases.
Here the exempt supplies mean no value-added tax is charged in respect of exempt supplies, and they are not “taxable supplies” which means that the supplier cannot recover the value-added tax incurred on expenses related to exempt supplies.A list of exempt supplies are given below;
• fundraising events by charities.
• Bare land
• Local transport
• Financial services: exchange of currency, LC, debt security, equity security, loan, operation of deposit or saving AC, dividend.
• Leasing, selling, and letting of commercial land and buildings.
• Residential building (other than the first supply)