SEARCH, INDEX, UPDATES, CONTENTS, SERVICES, VAT RETURNS, PARTIAL EXEMPTION
See also VAT Planning, VAT Flat Rate Scheme, VAT Returns, VAT Bad Debt Relief, VAT Capital Goods Scheme, VAT Car Fuel Scale Charge, VAT Cars including Leased Cars, VAT Registration Numbers, VAT Retail Schemes
From the 10 March 1999, VAT regulation 105 has been withdrawn. All businesses with exempt income will now have to comply with the regulations regarding partial exemption. They will have to carry out direct attribution of input tax to supplies and may suffer some loss of input tax on overheads.
This will mainly affect businesses with income from rent, interest or commission.
They will have to carry out partial exemption calculations to demonstrate their fully taxable status within the partial exemption de minimus limits if appropriate.
The normal method of apportionment is by turnover, but we may be able to achieve a saving by suggesting an alternative method and obtaining H.M. Customs & Excise agreement.
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