Revenue & Customs Brief 10/10

VAT: Partial Exemption – changes to the de minimis rules

This Revenue & Customs Brief announces two changes to simplify the partial exemption de minimis rules that take effect from 1 April 2010:

  • simplified tests
  • annual test

The de minimis limit remains the same but the changes make it easier and less time-consuming for businesses to confirm their de minimis status.

The changes are being made following a consultation on ideas to simplify the partial exemption rules, which confirmed strong support for their implementation. They are optional and businesses can benefit from them without seeking approval from HM Revenue & Customs (HMRC).

Further information

Further information can be found in VAT Information Sheet 04/10 which supersedes or complements existing guidance as appropriate. Legislation will shortly be published on the HMRC website.

Issued 8 March 2010