There are cases in which you do not have to charge VAT on your services. This is also referred to as exempt turnover. This applies, for example, if you work in education or healthcare. When your turnover is exempt from VAT, you are also not allowed to deduct input VAT. In many cases, you then also do not have a VAT obligation.
Partially exempt turnover
It may happen that only part of your turnover is exempt. In that case, only part of the VAT on your costs is deductible. At The Bookie, we always apply a percentage. So, if you charge VAT on 70% of your income, then 70% of the VAT on your costs is deductible.