liam.mccaffrey
|
| posted on 7/11/12 at 04:59 PM |
|
|
VAT on Seocnd hand vehicles
Got a bit of a debate going in work today about the VAT status of commercial vehicles and when a self employed person (not VAT registered) buys a
second hand Van or pickup from a dealer.
I had always assumed that commercial vehicles were advertised excluding VAT for legal reasons but is it right that some vehicles can be advertised as
NO VAT payable and what would the circumstances be for that to be the case.
I have only ever bought cars so I had no idea about any of this?
Cheers
Build Blog
Build Photo Album
|
|
|
|
|
loggyboy
|
| posted on 7/11/12 at 05:02 PM |
|
|
IIRC It depends on if VAT was reclaimed on the vehicle buy the first owner.
Mistral Motorsport
|
|
|
JoelP
|
| posted on 7/11/12 at 05:15 PM |
|
|
spot on there loggy. If the first owner claimed back the vat, then it will be sold plus vat. Ie £10000+vat. Had the first buyer not been vat
registered then it would be sold on at £12000 'no vat', and the future buyer couldnt clam back the vat even if registered. The reason
being that the seller wouldnt issue a vat receipt, which is what you need to get it back.
PS, its no difference for cars or vans. Commercial vehicles are advertised without the vat so that they seem cheaper, which is allowed cos trade
buyers are assumed to be vat registered.
[Edited on 7/11/12 by JoelP]
|
|
|
chillis
|
| posted on 7/11/12 at 05:24 PM |
|
|
As other responses but remember VAT is not payable if the vendor is not VAT registered even though that vendor may have had to pay VAT when the
vehicle was purchased. Need to be sharp on this as some 'dodgy' people have claimed a vehicle to be +VAT as a way of increasing their
profit
Never under estimate the ingenuity of an idiot!
|
|
|
BangedupTiger
|
| posted on 7/11/12 at 06:54 PM |
|
|
Ultimately VAT is always payable.
legally they can put whatever price they want, as it only classifies as an "invitation to treat"
Being able to reclaim any VAT depends on your circumstances and whether the vehicle is classed as a "qualifing vehicle" not all commercial
vehicles are qualifying vehicles.
Any vehicle can be a qualifying vehicle, it depends how the vehicle was treated at each purchase.
|
|
|
mookaloid
|
| posted on 7/11/12 at 08:25 PM |
|
|
Commercial vehicles and cars are treated similarly although not many people seem to understand how they are treated with regard to VAT.
Assuming the dealer is VAT registered and the vehicle is used:
Commercials as stated can be VAT qualifying in which case the purchaser pays VAT on top of the purchase price. This is easy everyone understands
this.
Non VAT qualifying vehicles as said will have been sold to the dealer by non VAT registered persons. a non VAT registered person does not have to pay
VAT on the purchase price so potentially it could well be cheaper for this purchaser. The dealer will pay VAT on any profit he makes on this vehicle.
This is called the VAT margin scheme (google it)
Whilst a non VAT qualifying vehicle will be attractive for a non VAT registered person to buy - the dealer will try to push the price up and take some
of the advantage away as profit - that same vehicle will be unattractive to a VAT registered buyer if the dealer has marked it up because it is non
VAT attracting.
The VAT Margin Scheme applies to used cars. so unless the car is VAT qualifying (usually only ex rentals or demonstrators are VAT qualifying) used
cars don't attract VAT except for the VAT on the profit that the dealer makes.
Hope that's clear
"That thing you're thinking - it wont be that."
|
|
|
