Own use
Own use arises where a business applies goods or services on which it deducted input tax to a purpose that gives no right to deduct — for instance private use or excluded turnover; the input tax then has to be corrected.
Definition
Typical cases are private use of company vehicles, withdrawing goods for personal needs, and construction work on one’s own building used for non-taxable purposes. The calculation is on the value at the time of the change, not on the acquisition cost.
The counterpart is subsequent input tax relief: if an item is later used for taxable purposes after all, the input tax not deducted initially can be claimed retrospectively.
Where to read it
What the software must be able to do
Check whether input tax corrections can be recorded as their own transaction, without touching the original entry, and whether they appear in the right place in the return.
Checked Aug 2026
More terms under VAT and customs: Acquisition tax Customs declaration Effective method Exempt supplies Flat-rate VAT method Input tax Margin taxation Non-consideration Place-of-recipient rule Reduction of consideration Takeaway 2.6 vs. eat-in 8.1 Value added tax VAT 3.8 % accommodation VAT 8.1 / 2.6 / 3.8 % VAT liability