Gary Campbell provides guidance on some of the practical issues, including industry-specific problems
Partial exemption is one of those VAT issues that is relatively straightforward and logical in theory but difficult to implement in practice.
Key issues include determining the most appropriate partial exemption method to be used setting up the necessary systems to ensure they properly capture and record the necessary information and agreeing the whole process with HMRC.
These difficulties are compounded by the fact that partial exemption is a feature of many different sectors each of which give rise to their own particular problems.
This article will consider some of these problems and how businesses in both the public and private sectors can manage these.
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