yestraders 0 Posted January 2, 2015 We are registered for the VAT margin scheme. I'm looking at buying a vehicle that isnt part of this scheme and has VAT on top of the purchase price (fiesta van). Do we then claim the VAT back and put 20% on the sale price when selling? Thanks Share this post Link to post Share on other sites
jimreidvehicle 255 Posted January 2, 2015 Yes, your understanding is correct! Most light commercials are vat qualifying and therefore you will be charged Vat when you purchase it, you then reclaim this vat during the month of which the invoice is dated, you will receive this vat back or it will reduce what you are due to the vat man that quarter. You then charge out Vat on the invoice you give your cur toner who buys the van from you! Make sure your vat registration number is in the invoice along with the detailed amount and rate of vat, this will allow your customer (if vat ) registered to reclaim the vat from the Government! Sometime you can get Margin scheme vans, these are normally traded in by a self employed yet non vat registered person , you would treat this purchase and resale the same as a margin car. Jim Share this post Link to post Share on other sites
Ken 10 Posted January 2, 2015 The VAT Margin Scheme is based on the base figure that you purchase the Van for and the figure you then sell the Van for. But what you spend on the Van is not taken in to consideration! Quick example. You buy the van for £1000 and sell it for £2000. But you have to spend £300 to prep the Van. You'll still have to cough up £200 in VAT! If you've just started out, you're best to wait until you hit the VAT threshold! Share this post Link to post Share on other sites
