Advertisement
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
https://www.boards.ie/group/1878-subscribers-forum

Private Group for paid up members of Boards.ie. Join the club.
Hi all, please see this major site announcement: https://www.boards.ie/discussion/2058427594/boards-ie-2026

VAT Query - Self Supply

  • 08-01-2014 06:37PM
    #1
    Registered Users, Registered Users 2 Posts: 394 ✭✭


    If a business carries on the trade of a motor dealership and a petrol station, would the company be entitled to reclaim the VAT on the cost of filling a car purchased in the dealership with Diesel/Petrol used from the filling station. I think this may come under Self supply rules but am having difficulty finding anything specific on it.

    Example, Company A reclaims VAT on a petrol/diesel delivery used to fill the pumps in the filling station. Mr X. purchases a car from Company A through the motor dealership and as a goodwill gesture Company A fills the new car with petrol/diesel. It is recorded through the till on account (otherwise petrol machine in shop would have outstanding transaction on it and would continue to beep) and is picked up in the VAT on Sales. Should Company A then record an additional VAT on Purchase for the petrol/diesel to cancel the VAT on sale above? Overall, the net of the above transactions is that company A gets a VAT input.

    Apoligies if the above is confusing but can't think of a better way to explain it...


Comments

  • Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    I am not sure if you will find guidance on this but my view would be that it is not a self supply.

    The petrol is put to a business use. It is provided to a customer who purchases the car. The car is filled out of the same business so the customer is indirectly paying for the petrol as part of the purchase of the car.


  • Registered Users, Registered Users 2 Posts: 194 ✭✭Ardeehey


    Not sure on this, it may seem like a business use but it's not of use to your business, it's of use to the customer who buys the car so I wouldn't think you could claim VAT on it but I am probably wrong!


Advertisement
Advertisement