Vat Margin Help

[betginge 73]

Hi Guys

I have a new limited company for the new pitch I am setting up going into the world of Mucky Sub Prime. Now Next week I inform the lovely VAT man of my registration, However I already have vehicles for this new business on its stock book.

Now I know my obligations for selling vehicles from Vat registration and the margin I will need to deduct from the sale for any future purchases and sales from that date but,

the question is when i sell the vehicles that I purchased before Vat registration do I need to deduct the margin on those cars. I suspect not as they were not eligible for the scheme as they were pre Vat Registration, Would this be correct ?

 

[Phil H 124]

doesn't matter when you bought them it's when you sell them that counts. If the invoice date is after you become vat registered then margin vat applies, however you can claim any vat that you've paid in relation to these cars, prep, buyers fees etc.

good luck with the new pitch

Edited January 21, 2017 by Phil H

[betginge 73]

9 hours ago, Phil H said:

doesn't matter when you bought them it's when you sell them that counts. If the invoice date is after you become vat registered then margin vat applies, however you can claim any vat that you've paid in relation to these cars, prep, buyers fees etc.

good luck with the new pitch

 

Phil

That Does Make Perfect Sense Now you mention it.

 

Cheers for the info and the good luck, am sure will need it

 

Lee