Can someone kindly give me an answer to this question -
I am currently looking for a van and some of them are priced + VAT. I am buying it for personal use and I am not VAT registered myself - do I still have to pay the VAT
( I am sure I do but I have had a look on HMRC website and I dont quite understand it)
Many thanks,
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Yes you do have to pay it.
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Yes, just as if you were buying a car, but manufacturers include the VAT in advertised prices as most buyers are not vat registered
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>> Yes, just as if you were buying a car, but manufacturers include the VAT in
>> advertised prices as most buyers are not vat registered
>>
Very few types of companies can reclaim VAT on cars
Driving School cars, Demo cars in garages, Leasing Cos CAN reclaim the VAT
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Buy a new car - pay VAT
Buy a new van - pay VAT
Buy a 2nd hand car - NO VAT
Buy a 2nd van -PAY VAT
Why is there this difference on 2nd hand vans only !
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Because all the previous owners were business users and VAT registered.
As soon as you, private Joe, buy it and pay VAT, the VAT stops being paid for subsequent owners.
Last edited by: Zero on Mon 14 Nov 11 at 08:47
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Make sure if a trader's trying to charge VAT on it that he's VAT registered - otherwise he's on the rob.
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On a second hand car from a dealer there is VAT!!
There is VAT on the difference between his buying price and is included in the selling price.
eg Buys a trade-in for £5,000 from Joe Public
He wants to make £1500
Selling price is £5,000+£1500+£300 (VAT) =£6,800
That is why if you trade in a car he offers you £5,000 against a £9,000 car (£4K to pay)he might turn around and say the invoice will show £4K trade-in against a £8K car (£4K to pay)
They never want to make a loss on a sale as they cannot claim the VAT element lost if they buy a trade-in @ £5K and auction @ £4.5K
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Buying a Van - VAT? - Stuu
