David Horgan 564 Posted January 8, 2021 (edited) 1 hour ago, johny1980 said: Thanks so whats the difference between 'qualifying' and 'non qualifying' as there is examples of 20% and 16.67% there? Qualifying means its previously been owned by a Company who claimed the VAT when purchased and paid it back when it was sold . This means that if the next trader eg us were selling it to another VAT business we could produce a VAT invoice and the new customer could then claim it back . If we sold the car to a private customer it returns as a Margin car and the VAT element is inside the profit Non qualifying means its a margin vat sales there is no such thing as a16.5% VAT rate at all Your confusing 16.5 % as VAT within the workings out regards the eg £100 including vat , Divided buy 1.2 = £166 as the Margin VAT , its never worked out as 16.5 % as i know it . EG if at end of quarter your gross profit is £40,000 then the MARGIN VAT = 40,000 divide 1.2 = £6,667 VAT , Leaving you £33,333 profit . But you can claim all paid VAT back in that quarter too so it will be different every time Edited January 8, 2021 by David Horgan Share this post Link to post Share on other sites
BHM 994 Posted January 8, 2021 Someone who can’t understand basic mathematics is probably well advised to employ a bookkeeper. Share this post Link to post Share on other sites
