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Post Info TOPIC: Output Tax on Assets at Deregistration
morgwick


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Output Tax on Assets at Deregistration
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Hi, I was just wondering if anyone can help with the journal for allocating output tax at deregistration on a car that was purchased. The car was only purchased 3 months before deregistering, and input tax was claimed. Am I correct in that I declare output tax on the NBV at the date of deregistering? If so and for example the VAT was £2000, would I Cr Output Tax £2000 and Dr Assets £2000 or does it get posted as a P&L cost?
Thank you



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Gill
Artois


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I take it this is a pool car or taxi that the VAT was claimed back on.

As far as I am aware you need to use the market value of the car at the time of deregistration and if this is more than £6,000 then pay back the output tax, the journal would be to Debit FA Additions of the amount and Credit the Output VAT    

 



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice
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