Where businesses are subject to special VAT regimes, such as Partial Exemption, there are further implications in terms of compliance with the MTD regime which need to be considered in terms of the end-to-end reporting requirements. However, many of the software developers now offer a range of apps and there are other solutions available which are capable of digitising the relevant calculations.

If your business is subject to a special VAT regime, then we’d recommend that you take specific tax advice from our dedicated VAT team who will be able to guide you through these complex regulations.