VAT – Partial Exemption

Speculation in the legal sector has grown over the last 12 months in relation to whether law firms need to apply for partial exemption when calculating the amount of input VAT that they can reclaim as a result of the increase in interest income received on client monies.

 

Patricia Kinahan, Legal partner sets out some practical context around this speculation and explores options that firms can consider to help mitigate any concerns they may have.