Partial exemption glossary

Produced by Tolley
Partial exemption glossary

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

  • Partial exemption glossary
  • Glossary

The table below provides a definition of commonly used partial exemption terminology.


AllocationVAT incurred on purchases is distributed or allocated to a specific sector within a special partial exemption method
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 year.
ApportionmentThe partial exemption calculation is

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