VATMARG03250 - Global accounting: Collections

Under global accounting, businesses may split collections of items and sell each item seperately or form other collections for sale under the scheme. They may also combine two or more items to produce only one item for resale, for example by using one item as a spare part for another.

If a business purchases an eligible item for £500 or more, and the item is made up of several components valued at less than £500 each, it cannot use global accounting if it sells the item in the same state as when it was purchased. For example, if the business purchases a tea set for more than £500 which includes many pieces, each valued at less than £500, and sells it as a tea set, it is selling one item. It cannot use global accounting for the sale.

If the result of combining two or more eligible items is an item of a different nature, the new item will not be eligible for the scheme.