When you purchase products for subsequent sale, you may find that your purchases include products for private use.
For example, you are enabled in the beauty sector and you regularly buy various creams & oils. Now you have one purchase invoice that states products for customers, but also products that are (in retrospect) for private use. How do you process these in your accounts?
The professional percentage of a purchase
If you know in advance that an amount of products are for yourself, you can indicate this via the professional percentage of a purchase.
But what if you only know that private use afterwards?
It can also happen that you initially did buy the products in question for your self-employed activities, but it turns out afterwards that you did use some of them personally. The invoice may already have been entered (and processed in your vAT declaration), what now?
Selling to yourself
You can easily rectify it by simply selling that product to yourself. This is allowed at purchase value.
Example:
You bought that product you are now using privately for €100 excl. VAT, €121 euros incl. VAT.
- As subject to VAT, you create a sales invoice to yourself (or via daily receipts, even easier) for 100 excl. VAT.
- As a VAT exempted or not exempted from VAT, you create a sales invoice to yourself (or via daily receipts, even easier) for €121.
This way, for your accounting purposes, the effect of the purchase is completely cancelled out by a sale of the same value.
Tip:
Financially you don’t have to do anything if you are a sole proprietor, a transfer from your private bank account to your professional bank account is not necessary.
