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VAT Partial Exemption

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Posted on by AndrewThomas

I have a customer who is partially exempt for VAT in the UK, so they can only claim a percentage of the VAT from suppliers

How can this be setup?

My first thought was to set the vendor to use prices including VAT and then set the VAT product posting group to the appropriate reduced %. Functionally this works, however most supplier invoices only have net figures on the lines, so entering is very time intensive as the user has to calculate the gross amounts for every line.

Partial exemptions is common in the UK so assume someone else has come across this.

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MartinNL 480 on at

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Hey Thomas,

So are you saying that the Customer (BC users) are paying the purchase invoices with the VAT amount e.g. 20% to the Vendor and can only claim e.g. 15% during their VAT submissions to HMRC?

Regards,

Martin

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AndrewThomas on at

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Hi Martin

Your understanding is correct, for VAT registered businesses in the UK with a lower level of output tax compared to input tax HMRC will sometimes reduce the amount of input tax you can reclaim. This can be reassessed periodically.

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Community Member on at

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Hi

Just wondering if you found a solution to Partial VAT calculation in UK version of Business Central?

Thanks

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AndrewThomas on at

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not using standard functionality

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JAngle 133 on at

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More for your customer than you Andrew: www.xpedition.co.uk/.../

Partial VAT as a developed solution is in use for numerous NFP clients

Sorry

What might be helpful is that this is done with modifications not with standard. Partly down to their being variations for different organisations some get more than others and some post the values in different places. All depends on their circumstances with HMRC

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AndrewThomas on at

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Yes totally possible with extensions :)

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