Andrew Needham looks at VAT recovery on goods and services that have some personal use and when output VAT is due on that private use.
VAT is generally not reclaimable on goods or services intended for personal use. If a business purchases items or services and uses them privately, it is considered a taxable self-supply, requiring the business to account for VAT on that private usage.
Private use of business assets, such as phones or vehicles, normally requires accounting for output VAT unless the input tax is apportioned to take account of any private use.
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