Partial Rebate

If a registered person supplies goods or services at both the standard VAT rate and at a reduced rate, specific VAT rate, or exemption, or supplies both taxable and exempt goods/services, then input tax credit shall be taken on the basis of the taxable (standard-rated or zero-rated) supply. In such cases, the registered person may initially claim input tax credit for the entirety of goods or services received as input, in accordance with Section 46, at the time of supply. However, at the end of the concerned tax period, that person shall make an increasing adjustment for the portion of input used in producing goods or services supplied at a reduced rate, specific VAT rate, or exempt category, and submit this increasing adjustment accordingly.

Total supply = Taxable Supply (Standard rate and Zero rate export) + Exempt, Other rate VAT all rates, Specific VAT supply except Standard rate and Zero rate export.

Partial Ratio = (Exempt, Other rate VAT all rates, Specific VAT supply except standard rate and Zero rate export ÷ Total Supply) × 100

Input Tax Partial Rebate Amount Calculation= Total Input Tax Rebate × Partial Ratio.

Under Section 46, a registered person (VAT taxpayer) may claim full input tax rebate.