Which category is a common exemption in VAT?

The category of common exemption in VAT includes exempt supplies, which specifically encompasses sectors like insurance and financial services. These areas do not typically charge VAT on their services, meaning that customers purchasing these services cannot claim back VAT, as none is added in the first place. This exemption is part of the VAT framework designed to avoid complications in taxation within sectors that operate uniquely from standard goods and services.

In contrast, standard retail goods generally do not fall under an exemption but are instead subject to VAT at the standard rate. All electronic goods also typically attract VAT unless specifically stated otherwise, making them ineligible for exemption. Lastly, while services provided by charities may be exempt, they are not universally exempt under VAT regulations; thus, they do not represent a common exemption in the same way as insurance and financial services.