True or False: If selling some exempt supplies below the de minimis limit, a business can still reclaim VAT on these exempt supplies.

To accurately determine the correct answer, it's essential to understand the relationship between exempt supplies and VAT reclamation. Exempt supplies do not incur VAT, and as a general principle, businesses making exempt supplies cannot usually reclaim VAT on their related expenses. However, there are specific provisions regarding the de minimis limit.

When a business makes exempt supplies but sells them below a de minimis threshold established by tax regulations, it may still have the ability to reclaim VAT associated with those specific exempt supplies. The de minimis rule allows businesses with minimal exempt sales to potentially reclaim a portion of their VAT even if they are primarily making exempt sales. Hence, the true nature of the statement is that a business can reclaim VAT on these exempt supplies if they fall below the de minimis limit, which aligns with the context of the question.

The other choices suggest varying levels of complexity or additional criteria that are not necessary for reclaiming VAT on those specific exempt supplies sold below the de minimis threshold, which makes them less accurate according to the established tax rules.