V3.460 Partial exemption—how much VAT can be recovered?
Once the extent to which the amount of VAT incurred by a person as input tax is established, and any amounts of input tax which are excluded from credit1 have been identified, it is then necessary to determine the extent to which that input tax is recoverable.
At the end of any prescribed accounting period, taxable persons are to credit for so much of their input tax for that period as is allowable. They may deduct the amount of that credit from any output tax due from them2.
Attribution of input tax—UK legislation
Under VATA 1994, input tax is allowable to the extent that it is attributable to the following supplies made by the taxable person in the course or furtherance of their business3:
- Ìý
(1)ÌýÌýÌýÌý taxable supplies
- Ìý
(2)ÌýÌýÌýÌý supplies outside the UK which would be taxable supplies if made in the UK
- Ìý
(3)ÌýÌýÌýÌý any other supplies outside the UK and such exempt supplies
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:21