Appealing against removal from the VAT flat rate scheme
Discussion
If they are actually sold - then the ACTUAL sales proceeds is the basis on which the 20% Output VAT is calculated.
If the assets are withdrawn from the business then Market Value is used. In your example you are giving, the assets are gradually reducing in value as they age and may fetch next to nothing if sold or be worth virtually nothing when withdrawn from the business. In this case any VAT levied would be very small or even Nil.
If the assets are withdrawn from the business then Market Value is used. In your example you are giving, the assets are gradually reducing in value as they age and may fetch next to nothing if sold or be worth virtually nothing when withdrawn from the business. In this case any VAT levied would be very small or even Nil.
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