de minimus limits?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi <BR><BR>Can anyone explain what de minimus limits are? I have searched the web and can't really find anywhere that really explains it!<BR><BR>Thanks<BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    de minimus limits?

    With respect to what? Do you mean VAT and partial exemption?<BR><BR>If so:<BR><BR>the exempt input tax should be not more than £650 per month, on average, and<BR>one half of all input tax for the period<BR><BR>this allows you to treat all input tax as recoverable. You must do a annual check and adjustment, if necessary.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    de minimus limits?

    It is also generally the case that once a de mimimus limit is exceeded the whole amount (not just that over the limit) is subject to the tax in question.

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