partially exempt

partially exempt
In the context of value added tax (VAT), a taxable person who makes taxable supplies (taxable supply) and exempt supplies (See exempt supply) will be able to recover input tax only to the extent that the input tax is attributable to his taxable supplies. Accordingly, such a taxable person is partially exempt from VAT as he is able to recover only part of the input tax that he incurs.
For further information, see the HM Revenue & Customs website .
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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