BB/17C/94 VAT on private use of business services
Business Brief, Issue 17. 12 September 1994
An order exists to ensure that private or non-business use of services is taxed where initially the tax was recovered because the services were originally purchased wholly for business purposes. There is already a similar provision for goods.
The Value Added Tax (Supply of Services) Order, SI 1993/1507 came into effect on 1 August 1993. The following information replaces and supplements the information in Business Brief 23/93 (26 July 1993) in the light of comments received from business organisations.
Most services by their nature are consumed at the point of delivery. However, some services are akin to goods in that they provide a tangible benefit that is used over time and whose use can therefore change. Examples are building construction and refurbishment, computer software and sporting rights.
A supply under the order