Partial Exemption and Apportionment
Statutory Basis: VAT Act §44
What statute says
Value Added Tax Act, 2014, s. 44 governs partial exemption and apportionment. Where a business makes both taxable and exempt supplies, input VAT recovery must be restricted to the taxable-use portion. This is commonly handled through an apportionment method that separates directly attributable input VAT from residual shared costs.
The legal objective is to prevent over-claiming while still allowing fair recovery for taxable activity. Apportionment must be consistent, evidenced, and suitable for review.
What platform does
CoralLedger Comply calculates period-specific apportionment ratios using taxable and exempt supply values and applies those ratios to residual input VAT. The schedule is visible in return previews and exports for audit support.
The platform also links apportionment outcomes to return totals so users can see how mixed-supply activity affects recoverable input VAT and net position.
Customer responsibility
You remain responsible for choosing correct transaction categories, identifying directly attributable costs, and confirming that the method used is suitable for your business profile.
If your supply mix changes materially, you should review methodology with a VAT advisor and update operational controls accordingly.