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vat on business and private fuel

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › vat on business and private fuel

  • This topic has 4 replies, 2 voices, and was last updated 11 years ago by aishaasad.
Viewing 5 posts - 1 through 5 (of 5 total)
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  • November 20, 2013 at 7:52 pm #147053
    aishaasad
    Member
    • Topics: 159
    • Replies: 185
    • ☆☆☆

    hello Sir ,
    can you please explain how the input vat and output vat will be calculated for business and private fuel by an illustration
    thank you

    November 20, 2013 at 11:58 pm #147084
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Have you read the OT course notes and listened to the lectures – see chapter 25 section 4 example 5.

    November 21, 2013 at 4:58 am #147094
    aishaasad
    Member
    • Topics: 159
    • Replies: 185
    • ☆☆☆

    hello Sir,
    Actually i messed up the question i asked you with the question i actually wanted to ask .however i went through the example that you had mentioned ant that is ok to me that output on the fuel is to be accounted for by way of scale
    moreover kindly please explain the paragraph below which is the extract from the example 12 quoted in examiner technical article on VAT part 1.
    please explain the vat implications. i don’t understand the reason as explained in the article.
    On 15 March 2013 Gwen sold a motor car for £9,600, and purchased a new motor car at a cost of £16,800. Both motor cars were used for business and private mileage, but no fuel was provided for private mileage. These figures are inclusive of VAT where applicable.
    explanation as in the article
    Input VAT would not have been recovered in respect of the motor car sold as it was not used exclusively for business purposes. Therefore, output VAT is not due on the disposal. Similarly, input VAT cannot be recovered in respect of purchase of the new motor car

    thanks

    November 21, 2013 at 1:41 pm #147158
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    See OT Course Notes Chapter 25 section 3 and example 4

    November 21, 2013 at 2:45 pm #147195
    aishaasad
    Member
    • Topics: 159
    • Replies: 185
    • ☆☆☆

    hello Sir,
    does that mean that the input vat is recoverable for the motor car which is exclusively used for the business purpose when sold
    kindly explain i have already done the example in course notes but there is no replacement point
    kind regards

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