I'd be very grateful for a little clarification - HMRC's webpage https://www.gov.uk/guidance/vat-private-use-and-self-supply-of-goods-and-services#services-you-use-privately states: "You might sometimes purchase services for your business but then put them to private or non-business use. This includes making private use of the services yourself or making the services available to others for their own private use. If you do this, your business may be making a VAT taxable supply of services on which you need to account for VAT."
However, VATSC083810 states: "The VAT (Supply of Services) Order 1993 (SI 1993/1507) came into effect on 1 August 1993. It ensures that private or non-business use of services is taxed where initially the tax was recovered because the services were originally purchased wholly for business purposes."
The latter would imply that a taxable supply should only be accounted for input VAT has been fully reclaimed on the purchase of the service, whereas the former suggests that a taxable supply is made in all cases.
Which is correct? If services for which no VAT has been claimed are used for private or non-private purposes for nil consideration, is there a deemed supply?
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