Sir if a trader buys a certain good for private purpose, but then goes on to sell it as a part of business, then does he have to charge an output VAT? and consequently pay it to HMRC?
Ask the Tutor ACCA TX-UK
VAT-goods for own use
Please focus on what you need to know and stop the "but what if" questions that have nothing to do with the exam.
Where a trader initially purchases goods for private purposes, no input VAT can be reclaimed and there is no output VAT charge. The goods then belong to the individual not the trade.
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