VAT on secondhand cars??

[startinghandle]

i have been looking at online finance repossessed cars for sale and I was surprised to see
Plus vat with price
I know vat is applicable to commercial vehicles and is reclaim able to vat registered buyers but does this apply to cars if not it makes the vehicle far too expensive

 

[Still Farming]

Think VAT on all vehicles, just some business's can reclaim if eligible.

 

[Farmer_Joe]

if vat was paid when new there should be no vat,

its different if it was reclaimed when new, then its chargeable again when sold, like most agri stuff.

repo cars i would be very surprised if there is vat on them unless they are all repo from vat registered bushiness which seems very unlikely

 

[steveR]

i have been looking at online finance repossessed cars for sale and I was surprised to see
Plus vat with price
I know vat is applicable to commercial vehicles and is reclaim able to vat registered buyers but does this apply to cars if not it makes the vehicle far too expensive

For the FULL price, or just for any fees?

Sounds odd to me, it is quite unusual for cars to have the VAT claimed back when new, and my understanding has always been that you only charge VAT on a 2nd hand machine/vehicle, if the VAT was claimed back beforehand.

Unless the cars are New??

 

[Exfarmer]

If the original owner was in a position to reclaim VAT and I understand a fair number do, then VAT will have to be charged on sale. Car hire companies, taxi firms etc are in this position

 

[Lincsman]

If they did claim the vat at new for some reason, they just pay back the difference when selling, but cannot charge it to the next owner, normally dealers pay vat on the profit margin of a used car.

 

[Still Farming]

 

[Lincsman]

thats rental not owning.

 

[Still Farming]

Can I Reclaim VAT When Buying a Car? - CarGurus.co.uk

Who wants to save 20% on their next car purchase? If you use your car solely for business purposes then such savings might just be possible.

www.cargurus.co.uk

 

[MrNuts]

VAT is only on used cars if they are classed as "qualifying", as said before if they're leased or ex rental, businesses cannot claim the VAT back on the purchase price of a car, only the rentals if leased.

 

[Farma Parma]

If the original owner was in a position to reclaim VAT and I understand a fair number do, then VAT will have to be charged on sale. Car hire companies, taxi firms etc are in this position

Bought Brand new Car in 2005 & cant claim the VAT on it altho it was shown etc but as its a Car not a Commercial didnt nothing with the VAT so whats changed?
Bought a Used car 9 months old 5years ago & on Invoice No VAT shown but Invoice clearly stated Used car Margin Scheme for Tax/Vat reasons.
again both just normal cars not a commercial so i know the rules & didnt push for a VAT receipt anyways.

 

[Farma Parma]

Can I Reclaim VAT When Buying a Car? - CarGurus.co.uk

Who wants to save 20% on their next car purchase? If you use your car solely for business purposes then such savings might just be possible.

www.cargurus.co.uk

Well done pretty much what was on my 9 month old Car invoice

Used Cars and VAT
If you are buying a used car in a private sale, there is no VAT to pay. If you are buying a used car from a dealer, then he or she will need to pay VAT on any profit made. This is known as the second-hand margin scheme. However, the amount of VAT will not be itemised on the invoice and is of no concern to the buyer.

 

[MrNuts]

Bought Brand new Car in 2005 & cant claim the VAT on it altho it was shown etc but as its a Car not a Commercial didnt nothing with the VAT so whats changed?
Bought a Used car 9 months old 5years ago & on Invoice No VAT shown but Invoice clearly stated Used car Margin Scheme for Tax/Vat reasons.
again both just normal cars not a commercial so i know the rules & didnt push for a VAT receipt anyways.

Used car margin scheme is where used car dealers have to pay the VAT on any margin they make, before reconditioning, so if they make £1,000 then they pay £167 VAT and clear £833.00, out of which comes any costs.

 

[Farma Parma]

Used car margin scheme is where used car dealers have to pay the VAT on any margin they make, before reconditioning, so if they make £1,000 then they pay £167 VAT and clear £833.00, out of which comes any costs.

Thats fine by me, atleast i didnt loose the 20% Vat when it was new as thats pretty much what happened on a New Car for everyone the min you drive it away

 

[Farma Parma]

Used car margin scheme is where used car dealers have to pay the VAT on any margin they make, before reconditioning, so if they make £1,000 then they pay £167 VAT and clear £833.00, out of which comes any costs.

I guess if the used car dealer pays VAT to HMRC it will then be claimed back tho? or maybes not poss output VAT in this case.

 

[Lincsman]

I guess if the used car dealer pays VAT to HMRC it will then be claimed back tho? or maybes not poss output VAT in this case.

No he only pays it, as a VAT reg person like me who used to repair cars and make a profit I had to pay the margin VAT, only fair really as I had claimed VAT on the parts to repair.

 

[Lincsman]

Thats fine by me, atleast i didnt loose the 20% Vat when it was new as thats pretty much what happened on a New Car for everyone the min you drive it away

Not really its still in there, cars with 100 miles and one keeper are not 20% cheaper, think of dealers pre reg cars.

 

[Farma Parma]

Not really its still in there, cars with 100 miles and one keeper are not 20% cheaper, think of dealers pre reg cars.

My Car with 4500miles on when i got it was a fair bit less £££ than a new one & it was more that the VAT would have been even.
Just my experience.... like for like Car & only £2.2k more 10years apart.
Pity you couldnt get Tractors like that eh.

 

[Lincsman]

My Car with 4500miles on when i got it was a fair bit less £££ than a new one & it was more that the VAT would have been even.
Just my experience.... like for like Car & only £2.2k more 10years apart.
Pity you couldnt get Tractors like that eh.

Dont forget though you can usually get 20% off list anyway when buying new, farmers seem to forget that with cars and pickups on lease and only want it off new tractors!