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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> goods for own use and vat return
Post Info TOPIC: goods for own use and vat return
phil77


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goods for own use and vat return
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hi iam

new to this forum and iam currently studying the icb exams although have completed icb exams level 1-2 .

i have a question completing the vat return where goods are taken for own use

i know the method is credit
purchase a/c
debit drawings a/c

but what about the vat entry -the vat on purchases would already be  claimed as input
tax
but what about output tax -would you make an entry as output tax to ofset the input tax .
or just leave as it is because the goods are not actualty sold but taken as a loss to the buisness. via drawings

?






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nautica


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HI
if taking goods for own ues and there is vat to pay then it should be

lets say its £100 Goods and £20 vat

CR Sales £100

CR Vat    £20

DR Drawings  £120

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phil77


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hi

so really  the goods are being sold to the owner of the buiness .



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Shamus


Forum Moderator & Expert

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Yes,

Just think of it that the goods belong to the business not the people running the business. By taking the goods from the business as you say the owners have effectively bought them in the same way as if they had been sold to a third party.

Here's a link to the BIM associated with VAT on goods for own use :

http://www.hmrc.gov.uk/manuals/bimmanual/BIM31560.htm

have fun,

Shaun.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
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