In Saudi Arabia, exemptions from VAT (Value-Added Tax) are specified by the Zakat, Tax and Customs Authority (ZATCA). The following are categories or types of businesses and transactions that are generally exempt from VAT:

Small Businesses:

Businesses with an annual revenue below SAR 375,000 are exempt from VAT registration.

VAT-Exempt Goods and Services:

Some goods and services are VAT-exempt. These include:

Healthcare services: Most medical services provided by authorized professionals.

Educational services: Many types of education services provided by registered institutions.

Financial services: Certain financial products like loans, life insurance, and certain types of investment services are exempt.

Real estate transactions: Sales of residential property are exempt (though some commercial properties might be subject to VAT).

Exports:

Exported goods and services are generally zero-rated (subject to 0% VAT) rather than exempt. This means VAT is not charged on exports, but businesses can still reclaim VAT on their expenses.

Certain Government Services:

Some services provided by government entities may be exempt or zero-rated, especially those related to public services, administration, or regulatory functions.

International Transport:

Transport services related to international trade, such as goods moving in or out of Saudi Arabia, are generally exempt or zero-rated.

Religious and Charitable Activities:

Goods and services provided by charities and non-profit organizations might be exempt from VAT if they are not engaged in profit-making activities.

Special Zones:

Certain free zones or special economic zones may have specific VAT exemptions or zero-rate VAT for businesses operating within them.

Government Projects:

Projects related to infrastructure and public services that are funded by the government can be exempt from VAT under specific circumstances.