How to apply a partial VAT rate to a single line on a purchase invoice?

This article covers applying a partial VAT recovery rate to a single line on a purchase invoice using the 'Partial Tax Ignore' column, using fifty per cent recovery as a worked example. It assumes partial tax recovery is already set up on the Tax Group – see 'How to set up partial tax recovery for non-recoverable or partially recoverable VAT in iplicit' if it is not.

When to use Partial Tax Ignore on a purchase invoice

Use 'Partial Tax Ignore' when one line on a purchase invoice qualifies for partial VAT recovery – for example, mixed business and private use – while the other lines on the same invoice follow standard VAT treatment. This article uses fifty per cent partial recovery as a worked example.

Before you start, confirm on the Tax Group used by the invoice that:

• Partial tax recovery is enabled and a partial rate is set – see 'How to set up partial tax recovery for non-recoverable or partially recoverable VAT in iplicit'

• You have permission to amend Tax Groups, or access to someone who does, if the rate still needs setting up.

Exposing the 'Partial Tax Ignore' column on a purchase invoice

The 'Partial Tax Ignore' column controls partial VAT recovery line by line and is hidden by default.

1. Open or create the purchase invoice
2. On the invoice lines grid, select the cog icon (column chooser)
3. Tick 'Partial Tax Ignore' so the column becomes visible.

Applying partial VAT recovery to the correct line

By default, every line on a purchase invoice using a partial Tax Group uses the partial rate. 'Partial Tax Ignore' is the override that switches a line back to standard VAT.

1. On the line where partial VAT recovery should apply, leave 'Partial Tax Ignore' unticked
2. On every other line, tick 'Partial Tax Ignore' so those lines use standard VAT rules
3. Save and submit the purchase invoice as usual.

Only the unticked line uses the partial rate defined on the Tax Group. All ticked lines recover VAT at the standard rate for that Tax Group.

Things to check if the partial rate is not applying

If VAT recovery on the purchase invoice does not reflect the expected partial rate, check the following on the Tax Group used by that line:

• 'Partial' is ticked on the Tax Group
• A partial rate exists on the 'Partial Rates' tab and is active for the document date
• Any criteria set on the partial rate match the line in question
• 'Partial Tax Ignore' is unticked on the line that should receive partial recovery.