vat on second hand vehicles??
- Thread starter s86t
- Start date
Exfarmer
Member
- Location
- Bury St Edmunds
If you are a VAT registered trader , and the vehicle is part of your business, and is a reclaim able vehicle, ie is not a short wheelbase station wagon, then yes, you must charge VAT on the sale.
be better in the machinery section
Dave W
Member
- Location
- chesterfield
There is something about the vat margin scheme where you only charge vat on the profit margin. Not sure if it's applicable in this case though.
Derky
Member
- Location
- Bucks/oxon
The key is whether vat was paid originally.
Dave W
Member
- Location
- chesterfield
The buyers vat status has nothing to do with it
- Location
- Scottish Highlands
No.
No VAT was paid when the vehicle was purchased so no VAT should be charged when it is sold. The OP is not in the business of buying and selling cars. VAT is a tax on added value. Income tax is a tax on income. And the lottery is a tax on stupidity.
If he was a VAT registered car dealer and the car was bought from a non-regstered seller, he should charge VAT on any profit made. Not sure what he does if he loses money on the deal, though. Claim it back on the loss?
No VAT was paid when the vehicle was purchased so no VAT should be charged when it is sold. The OP is not in the business of buying and selling cars. VAT is a tax on added value. Income tax is a tax on income. And the lottery is a tax on stupidity.
If he was a VAT registered car dealer and the car was bought from a non-regstered seller, he should charge VAT on any profit made. Not sure what he does if he loses money on the deal, though. Claim it back on the loss?
- Location
- Lincolnshire
question, is it a car or commercial vehicle?, car is on VAT on profit, commercial is vat on the sale price if you are registered, you would have claimed VAT on it when buying if it was added so it came into the business at the same cost anyway.
how much do you want for it where is it and would you take cash
Dave W
Member
- Location
- chesterfield
I've been told by nearly every eBay user/muppet that if you pay cash then there's no vat anyway.
I keep meaning to run that past an accountant see what they think
I keep meaning to run that past an accountant see what they think
Lazy Sod
Member
- Location
- Warminster Wiltshire
Isn't the margin scheme just for motor traders?
The vat status of the purchaser is irrelevant. If the vehicle is a business asset and you are vat registered, then you must charge the vat. It matters not as to whether you paid vat on buying it. You could have bought it from a private individual, and not paid vat, but you still charge it on the sale.
Dave W
Member
- Location
- chesterfield
I think the margin scheme applies to everything. See it a lot with groundcare stuff.
Surely if bought from a private seller, VAT will have already been paid previously at the original sale and not reclaimed. If you then charge vat on the sale, the item will have had vat charged twice
- Location
- Northumberland
If the Landrover was bought from a private seller who paid VAT when purchased but couldn't claim it back then the landrover will not have VAT on the sale regardless of wether the buyer or seller is registered for VAT.
- Location
- Lincolnshire
No, the private seller sold it to the op for (eg) £5000 no vat, if he was registered it would be £6000 inc VAT, the fact the seller didnt claim his original vat back is how the treasury makes anything out of the scheme. VAT individuals keep passing it on until the final consumer pays the value added.
- Location
- Lincolnshire
Sort of, to help there cash flow, but if you as VAT reg person sell a CAR (not van) at a profit you pay vat on the margin of profit.
I think you and me is right, except where the landrover has risen in value whilst in the vat registered ownership, then vat would be charged, but only on the increase in value
Grassman
Member
- Location
- Derbyshire
Why not contact the vat office. Some comments on here will be right but which??