Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Quirks of the VAT partial exemption rules

11 March 2024 / Mike Thexton
Issue: 4928 / Categories: Comment & Analysis , partial exemption , VAT , VAT
163447
VAT a relief?

Exemption of certain goods and services is described as a ‘VAT relief’: in many cases the intention underlying the law is to reduce the cost of selected types of ‘essential’ supply to the public (healthcare education etc). However the way the rules operate is not always so beneficial to the businesses that have to put them into practice. This article reviews some of the quirky outcomes I have come across recently.

Strictly

In some other taxes reliefs are there to be claimed: you can choose whether you want them and if you fail to file at the right time you have missed out. VAT exemptions are mandatory: if a supply meets the definition in the law it is exempt and if you have accounted for VAT on it you have made a mistake. That may entitle you to claim output...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries
Please email any questions you might have
to: taxation@lexisnexis.co.uk.

back to top icon