 | Home > Off Topic > Selling -Price plus Vat question? |
 
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| SailingTom Member Since: 19 Nov 2013 Location: ESSEX Posts: 1722  
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Hi all.
Im going to be advertising my 90 soft top soon and have a question regarding the VAT. You'll have to excuse my ignorance as I've only had station wagons before, but basically im going to be asking £19,500 (this is including VAT) as the it has already been paid. My question is if the next owner has a business and is not a private buyer like myself are they allowed to claim the VAT back again? Only reason I'm asking is can I put the asking price as £15,600+ VAT which will make it the cheapest low mileage 11 plate or will I have to advertise it as the £19,500. Many thanks Tom (PS. ill be getting another defender so your all stuck with me!  ) Defender puma dormobile camper |
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11th Jan 2014 3:24pm |
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| RobKeay Member Since: 19 Jul 2009 Location: Stafford Posts: 1591 
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You have paid the VAT so there is no VAT on your sale. Your buyer cannot reclaim any money. Better for the private market though.
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11th Jan 2014 3:28pm |
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| SailingTom Member Since: 19 Nov 2013 Location: ESSEX Posts: 1722
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Thanks Guys
that's the info I was after, just wondered although like you say its better for private buyers. Hopefully they wont be put off by the price then as a lot look lower but are plus VAT so work out more. Im sure it will go though as not many soft tops for comparison with low mileage and it would appeal to more private than buyers than business' any way I recon. Cheers Tom  Defender puma dormobile camperLast edited by SailingTom on 11th Jan 2014 3:37pm. Edited 1 time in total |
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11th Jan 2014 3:34pm |
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| leeds Member Since: 28 Dec 2009 Location: West Yorkshire Posts: 8582
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Hi Tom, unless you are VAT registered their is no legal way you can charge VAT.
If a VAT registered business buys a vehicle they would need a proper VAT invoice showing a VAT number before they could offset that VAT paid on their quarterly returns to HMRC Since it would appear that you were a private buyer you paid the VAT that is basically the end of the story as far as HMRC is concerned. If you trade it in to a VAT registered garage the story there is a bit more complicated about how they will account for VAT on their final selling price. So short answer is NO you can not charge VAT as a private non VAT registered individual. Brendan |
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11th Jan 2014 3:37pm |
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| SailingTom Member Since: 19 Nov 2013 Location: ESSEX Posts: 1722
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Thanks Brendan
Yes im not VAT registered as just liked the look of it when I bought it, so No's the answer. just wondered as thought the price might look a bit less. No problem though as still appears a fair price for a 2011 90 with 16,000 miles and has lots expensive bits like the frame and hood. Just got to see how it goes. Cheers Tom Defender puma dormobile camper |
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11th Jan 2014 3:42pm |
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| TJ101 Member Since: 30 May 2007 Location: Taunton Somerset Posts: 3750  
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Easy The vehicle then becomes a "margin" sale. Ie. vat is due on the gross profit ie buy for 19.5k. Sell for 20.5k vat comes out of the £1000 margin California F1, 75th 110 "Kermit", 50th Ann V8, 90 V8 Hybrid, 55 Series 1 Main Brian James Trailer Dealer for South West UK |
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11th Jan 2014 6:01pm |
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