A to Z of partial exemption

Produced by Tolley

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • A to Z of partial exemption

A to Z of partial exemption

There is often a significant volume of technical terminology that is use when discussing partial exemption. The table below provides brief explanations of some of the key terms associated with partial exemption and, where appropriate, links to guidance notes containing further details.

TermDefinitionFurther details
AllocationVAT incurred on purchases is distributed or allocated to a specific sector within a special partial exemption methodTypes of partial exemption special methods
Annual AdjustmentBusinesses provisionally reclaim VAT on each VAT return calculated using the partial exemption method. At the end of the tax year, a partial exemption calculation is undertaken using all of the figures for the whole tax yearAnnual adjustments (longer period adjustments)
ApportionmentThe partial exemption calculation is intended to split the residual input tax between taxable and exempt supplies. The residual input tax will be apportioned between taxable and exempt

Popular documents