Partial Exemption in UK

Over the years, banks in the UK have found it extremely difficult to determine exactly how much VAT is recoverable. Attributing expenditure to one specific income unit, and thus calculating partial exemption, requires multiple rules to be understood and configured. To add to this, heavy calculations are done without the help of technology to find out partial exemption increases the chance of manual errors.

As such, the need to recover and calculate partial exemption on VAT, manually, through complex formulas has become painstaking and a huge investment for banks. This makes automation of partial exemption an absolute necessity, and the need to calculate recoverable VAT imperative, and inevitable!



Digitalizing Partial Exemption

Xelerate’s Digital VAT Solution

SunTec™, with the flagship product Xelerate®, enables financial services organizations like yours to digitalize partial exemption on VAT and therefore leverage it to your advantage. It is well equipped to automate partial exemption calculation, minimise manual errors and plug any tax leakage on the input tax banks can recover.
Xelerate’s Digital VAT Solution has been designed to address the need of partial exemption and other VAT automation requirements at banks.

Plug tax leakage. Recover VAT

By automating partial exemption on VAT, Xelerate® helps plug tax leakage through inbuilt multiple composite formulae, and a combination of such formulae, to come up with the exact recoverable VAT. It enables banks to handle complex partial exemption calculation formulae, through digitalization of VAT compliance, estimation, and invoicing.

Manage attribution rules

Xelerate® helps manage attributable and non-attributable expenses through a set of complex partial exemption logics and rules and deep diving into these intricate rulings to allocate input tax to either –
a. Directly attributable taxable input tax
b. Directly attributable exempt input tax
c. Residual input tax

Customise VAT calculation

Xelerate® enables easy customisation of the standard method, thus providing organisations with flexibility to define special method that suits their respective business models the best.
Standard method – The standard method of splitting the pot is based on turnover. The recoverable amount is the percentage of taxable sales as a proportion of total sales.
Special method – A special method is any calculation, other than the standard method, that enables a business to calculate how much of their input tax they may recover.

Increase Operational Efficiency

Xelerate’s Digital VAT Solution helps calculate partial exemption automatically, without the need to understand or configure multiple complex rules. As such, it become easy and straightforward for banks to attribute expenditure to one specific income unit. This is carried out in a seamless manner, doing away with huge investments of time, effort and resources, while simultaneously decreasing the chances of manual error.


Get in touch with us now to get VAT ready before it is too late

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