Which service is typically exempt from VAT?

Land leasing is typically exempt from VAT because it falls under the category of services related to the letting or leasing of land and property, which is generally not subject to VAT in many jurisdictions. This exemption is designed to ensure that essential activities related to housing and land use are not burdened by additional taxation. By exempting land leasing from VAT, the government supports access to land and property without adding financial strain through taxation.

In contrast, services such as restaurant meals, electronics sales, and luxury goods are usually subject to VAT because they typically involve a significant value addition. These items are considered consumables or luxury items, and their sale is part of the broader taxable supply chain that is common in VAT systems.