Historically, the process of calculating partial exemption has varied, and is specific for each industry and often each business. Hence the reason when Making Tax Digital (MTD) for VAT was announced in 2015, partial exemption was not even included in reporting requirements.

As the accounting and tax industry began shifting to the cloud and the automation of time-consuming tasks, partial exemption for VAT compliance starkly remained as the one crucial process for which tax pros desperately sought a more efficient solution.