CH- PARTIAL EXEMPTION

CH - 12 - PARTIAL EXEMPTIONFormula to determine % recovery: Taxable supplies value (minus capital goods)/ Tx. sup (minus capital goods) + Exempt sup. = %To exclude from calculation: Capital goods (L&B, PCs, ) Self-supplies outside scope transaction DE MINIMUS INPUT VAT RULEVAT on exempt trans. can be recovered if total exempt input tax is less than or equal to: Threshold 625 pounds p.m. and less than 50% of total input tax

ANNUAL ADJTS. - when to account for - depending on Stagger group!!A/C for on the firs VAT return of the new year or :Final return of the VAT year rather than wait until the first return of the new year.EXCEPTIONS:CAPITAL GOODS SCHEME: Adj. will be done ---> 2nd VAT return following the end of the VAT yr.

CH- 26 L&B - OPTION TO TAXLand (any sort of land, ie.: farmers's land : exempt , therefore, option to taxDomestic building (eg: terraced house): exempt, but, domestic, therefore no option to taxCial. lease building (e.g: 5 year old factory) : cial. + lease : exempt, option to tax available.freehold sale 1 yr. old office block: Stand Rate99 year lease of 1 yr. old shop: Cial+ lease: exempt, option to tax available. Notes: gran of a lease -cial. building + lease: exempt supply. option to tax available.Freehold @ SR. >3yrs old. uncompleted cial. building new cial. building

LEASE - CIAL PROPERTY = EXEMPTPREMIUM+RENTAL INCOME ON CIAL PROP.= EXEMPT + OPT. TO TAX AVAL.