There are many categories of business who are not able to fully recover all of their VAT, such as financial services businesses, certain categories of property businesses and certain not for profit organisations. For these businesses, knowing how to structure their affairs – and their partial exemption method – in order to get the best VAT recovery possible will be crucial. After all, the VAT cost directly increases certain expenses for such business by 20%!
There will also be various transactions on which it will be important for the business to understand their VAT liability, such as
- Property sales – and whether the option to tax should be exercised
- Transfers Of a Going Concern (“TOGC’s”)
- International supplies
- “Mixed” supplies
- Financial services supplies
- Supplies of other particular exempt or zero rated items (e.g. the plethora of different categories of food supply)
…. The list is virtually endless but the point is that VAT is not a straightforward tax, particularly for many businesses. We can help you through the grey areas to see a suitable way forward.