VAT & Partial Exemption - How to Maximise Recovery & Avoid Risk

Introduction

VAT registered businesses which also make exempt supplies cannot recover VAT on all their costs as input tax. Particular business sectors affected are land and property, insurance and finance, education, health and welfare and charities. This course is for those who have a sound knowledge of general VAT, but who are new to the area of partial exemption. It gives participants a clear understanding of the subject, and the tools to maximise VAT recovery in their particular business sector and avoid risk of errors.

What You Will Learn

This course will cover the following:

• The detail of the exemptions within Schedule 9, VATA 1994 and the fine line between exemptions and taxable supplies
• General provisions relating to allowable input tax
• The standard method
• Values and use based calculations
• Use of previous year's recovery percentage
• Standard method override
• Special Methods
• Sectors, headcount, square footage etc
• Fair and reasonable declarations and legal certainty
• Special method override
• De minimis limits
• Attribution of input tax
• Definition and case law
• Change of intention and use requirements
• Annual Adjustments
• Out of country and distortive supplies, including Budget changes
• Records and accounts
• The VAT Capital Goods Scheme
• Imports of services and the reverse charge, including Skandia