[bensummers]

You don't pay VAT on "essential goods", eg food, clothing, rent, etc.

Of course the rules are a bit fool about what is essential, and VAT is still a terribly regressive tax.

[ajnin]

It depends on the country I guess, in France you do pay VAT on food (5.5%), clothing (20%), and for rent it depends on what you're renting but for most people you're right that they're probably exempt.