Preparing for VAT annual input tax apportionment

Businesses engaged in making a mixture of taxable and supplies exempt from value added tax (VAT) must apportion the input tax which they incur for making such mixed supplies. Apportionment calculations must be undertaken by the taxable person on a period-by-period basis with an annual “wash-up” calculation to be performed in the period following the end of the tax year.

Source: KPMG

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