HMRC Guidance: Partial exemption (VAT Notice 706)

Update Aug 16, 2021:

Find out about partial exemption and the methods and calculations to use to see how much input tax you can recover.

Contents

• Detail
• 1. Overview
• 2. Partial exemption in general
• 3. How to calculate how much input tax you can recover
• 4. The standard method
• 5. The standard method override
• 6. Special methods
• 7. Including non-business use within special methods
• 8. Special Method Override Notices
• 9. Input tax relating to ‘foreign’ and ‘specified’ supplies
• 10. Can you recover input tax relating to share issues and share sales
• 11. The de minimis rule
• 12. Annual adjustments
• 13. Intended use of supplies received and changes of intention
• 14. Belated claims to input tax and capping
• 15. Special circumstances which have a bearing on the partial exemption rules
• 16. Glossary
• Appendix 1 – declaration template
• Appendix 2 – Guidance for businesses seeking approval for a Partial Exemption Special Method
• Appendix 3 – Services and related goods used partly to make incidental financial supplies
• Your rights and obligations
• Help us improve this notice
• Putting things right
• How HMRC uses your information

Source gov.uk

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