Subject been done (to death) before, but I can't find the exact question...
If I buy a laptop, can a 3 year support agreement be included in the "computer package" example below?
If I buy a laptop, can a 3 year support agreement be included in the "computer package" example below?
15.3 What counts as a single purchase of capital goods?
The normal VAT rules are used to determine whether any particular supply is one, or more than one, purchase and whether supplies are of goods or services.
Examples of a single purchase are:
* A computer package (computer, printer, camera, scanner, speakers etc.) bought as one package is one purchase of capital expenditure goods. If the package costs £2,000 or more (incl. VAT) then input tax can be claimed.
* Items of kitchen equipment (a pizza oven, a fridge and a dishwasher) bought for a restaurant. If all the items are from one supplier at one time, then they count as one purchase of capital expenditure goods. If they are from three different suppliers, or at three different times then they will be three purchases and each must be £2,000 or more (inc VAT) to qualify for a reclaim of VAT.
The normal VAT rules are used to determine whether any particular supply is one, or more than one, purchase and whether supplies are of goods or services.
Examples of a single purchase are:
* A computer package (computer, printer, camera, scanner, speakers etc.) bought as one package is one purchase of capital expenditure goods. If the package costs £2,000 or more (incl. VAT) then input tax can be claimed.
* Items of kitchen equipment (a pizza oven, a fridge and a dishwasher) bought for a restaurant. If all the items are from one supplier at one time, then they count as one purchase of capital expenditure goods. If they are from three different suppliers, or at three different times then they will be three purchases and each must be £2,000 or more (inc VAT) to qualify for a reclaim of VAT.
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