Commercial vehicle VAT

[James01 21]

Morning everyone,

just a quick work of advice, if I take a van in part exchange do you have to add VAT onto the price.

For example a van someone is looking to px is valued at £3500 CAP, do I then add 20% on top of that and show it on the invoice? 

Only reason I ask is that looked at the WBAC value and they add VAT so was uncertain.

Thanks in advance. 

[Mark101 536]

6 minutes ago, James01 said:

Morning everyone,

just a quick work of advice, if I take a van in part exchange do you have to add VAT onto the price.

For example a van someone is looking to px is valued at £3500 CAP, do I then add 20% on top of that and show it on the invoice? 

Only reason I ask is that looked at the WBAC value and they add VAT so was uncertain.

Thanks in advance. 

It depends if your buyer is VAT registered, if so you will buy it plus VAT.

[David Ayers 171]

Vat is chargeable on a commercial vehicle until it passes through a private (non Vat registered) person, as they cannot charge Vat.

 

[David Horgan 564]

On this subject I've seen vans go through auction as a private non VAT van and then appear on van trader as Plus VAT .. 

 

[MattR 177]

ask the seller if he is VAT registered. If he is, then you have to give him the amount plus VAT. its then down to him to pay that bit of VAT to the VAT man. When you sell it, you sell it plus VAT (even if you sell it to someone who isnt VAT registered) which means that you dont calculate the VAT on the margin. you recover the VAT which you paid out, and pay the VAT on the sale amount.

If he isnt VAT registered, then you treat it like you would a car, so you dont give him any VAT and you dont charge it when you sell it. Just as a precaution, I would recommend you ask him to bring evidence of VAT registration if he says he is, just a copy of one of his invoices may be helpful if you ever had to prove anything at a VAT inspection.

 

[Nick M.K. 574]

22 minutes ago, David Horgan said:

On this subject I've seen vans go through auction as a private non VAT van and then appear on van trader as Plus VAT

That makes no sense at all, unless they are trying to be clever and add 20% on top of the market price (hoping for a non-vat registered buyer) without having any intention (or indeed obligation) to pay that to HMRC :-)

[David Horgan 564]

4 hours ago, Nick M.K. said:

That makes no sense at all, unless they are trying to be clever and add 20% on top of the market price (hoping for a non-vat registered buyer) without having any intention (or indeed obligation) to pay that to HMRC :-)

I've tried working it out too Nick but its like 99% of the time now , Van CAP price at Brighouse on Monday £3200 and it made £3850 funnily enough just 20% over CAP  , on sale today at £4695 +VAT 

Must be a loophole  or its as you say a clever move of  the additional so Called VAT as a 20% extra mark up , Don't know what happens if you get a VAT reg trader wanting to buy the van though . 

[Nick M.K. 574]

If you get Vat regd customer you offer a 20% discount “for cash” from the vat inclusive price I presume or even more likely tell them, oh, sorry, my colleague just told me it’s reserved for another customer.