Commentary

V7.329 Exemption—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.329 Exemption—planning points to consider

Part V7 Tax planning | Commentary

V7.329 Exemption—planning points to consider

The following planning points should be given consideration.

  1.  

    •     It is an advantage for supplies to either the general public or other exempt businesses to be exempt from VAT because there is no tax charge to customers that they cannot recover. In most cases, this situation will outweigh the disadvantages of the input tax relevant to the supply not being reclaimable.

  2.  

    •     There are occasions when a standard rated supply being incorrectly treated as exempt could prove costly for a business. For example, a VAT charge to another registered business would not be a problem

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