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I would like to know how VAT is accounted for goods that are used for non-business use. Oddly enough, it is not mentioned in the OT notes. I have the BPP FA 2015 study text and it was mentioned there.
BPP can be difficult to understand at times so I need a little clarification here.
Also, gifts of goods and services are also not mentioned in the OT notes. I would also like to know the treatment for those as well.
Firstly I would advise that you should not be using FA 2015 material other than where you are aware that no changes or limited changes of which you are thoroughly aware, have taken place (VAT is such an area where minimal change has occurred).
See OT notes Chapter 25 VAT page 152 section 3.1 note (d) – plus the notes do not indeed contain every point in a study manual or they would be as large as a study manual and just as difficult therefore to learn from!
As regards gifts I am sure that the BPP manual will tell you that there is no VAT on services supplied but it will be charged on the replacement cost of goods gifted other than in a few specific cases such as the supply of business samples
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