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Practical Handbook VAT 2021

Exemptions in internal operations

Exemptions for domestic transactions are limited, so they do not give rise to the right to deduct the VAT borne on purchases of goods and services used to carry out the exempt transaction.

They can be classified according to the subject matter they affect:

  1. Exemptions for medical and health operations
  2. Exemptions relating to educational activities
  3. Social, cultural, sporting exemptions
  4. Exemptions for insurance and financial transactions
  5. Real-estate exemptions
  6. Technical exemptions
  7. Other exemptions