probably, or its claimed in expenses Yes, VAT applies to both goods and services. Different countries apply the tax in different ways but, in general, most countries will exem
…pt the following types of services from their VAT: Financial services Healthcare services Education services Some will also extend their exemptions to burial services, water and sewerage services and gambling (on the basis that gambling is usually taxed very highly with excise duties). VAT also has reduced rates and exemptions that relate to goods. Examples of reduced rates normally include food stuffs, books and magazines, exported goods, residential accommodation and, in some rare cases (e.g. the UK), children's clothes. As I said, it is difficult to generalise on this question because each country does its own thing (even within the EU) but hopefully the above will give you a high level guide. (MORE) 
