What are supplies considered outside the scope of VAT?

Supplies considered outside the scope of VAT typically include transactions or items that do not fall under the VAT requirements set by the tax authorities. Wages are a prime example of this. They are considered payments made to employees for their labor and are not treated as supplies of goods or services under VAT regulations. As a result, they are exempt from VAT.

In contrast, options like goods sold to the public, business expenses, and charity donations can potentially involve VAT implications. For instance, goods sold to the public are supplies that are usually subject to VAT, and business expenses may include VAT recoverable on certain purchases. Charity donations could involve VAT if the goods or services given away are previously taxable supplies. Therefore, wages clearly highlight transactions that are outside the scope of VAT, validating them as the correct answer.