Director of Company + VAT

godtabh

I'm a director of a management company.

I've been thinking of making a purchase of a few IT related items. Some one suggested that I should use the company vat number to purchase vat free.

How does this work?

TaxingTimes

You should only purchase the products through the company, if they are the company's business related items.

namenotavailablE

I agree with the foregoing advice.

Additionally, if you buy an asset and initially use it for business purposes (claiming a valid VAT deduction in your VAT return) but then transfer it to personal use (eg a computer originally used for business office purposes but now used for home entertainment/ personal purposes), then you are required to account for the VAT on the computer as a 'self-supply' ie effectively treat the 'transfer to private use' transaction as a sale and charge sales VAT on the (original value? or second hand value?- not sure; can someone clarify) of the product.

Essentially, you cannot recover VAT on items used for non-business purposes.

godtabh

It would be use for company business but not exclusively

TaxingTimes

Here is some info on e-working which may be of use.

http://www.revenue.ie/en/tax/it/leaflets/it69.html

Mr. Incognito

There is a link to the VAT guide in the stickies.

If your company is VAT registered then you can purchase it through the company, however as you seem to be heer asking how this may work in principle I'm guessing your company is not VAT registered?