- This topic has 1 reply, 2 voices, and was last updated 1 year ago by Tax Tutor.
- November 25, 2021 at 5:25 am #641563@sahilParticipant
- Topics: 11
- Replies: 5
What is the meaning of replacement value here in these cases-
Where the trader withdraws goods which were purchased for business purposes, input VAT can be recovered and output VAT must be accounted for on the ” replacement” value of the supplies.
Gifts of inventory or non-current assets are treated as taxable supplies at replacement cost, except gifts of:
goods to the same person which cost the trader £50 (excluding VAT) or less in a 12 month period. business samples, regardless of the number of same samples given to the recipient.December 20, 2021 at 10:39 am #644589Tax TutorMember
- Topics: 2
- Replies: 3965
Firstly my apologies for not being available until now to answer your question – in each of the first 2 situations, if input VAT has been claimed on the purchase then output VAT must be charged on the replacement COST of the goods unless the 3rd situation arises where the COST of all the goods to the same person within a 12 month period does not exceed £50 when output VAT does not have to be charged
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