VAT on second hand vehicles

ok, lets guess the question! The answer is........VAT has to be paid by the purchaser of a new vehicle. However, if the new owner is a VAT reg business they can claim it back. Every time the vehicle is sold, VAT is paid and claimed back if the new owner is VAT reg. If the new owner is not VAT reg then they can't claim it back. Any subsequant new owner does not have to pay VAT.................I think!
 
VAT will be paid on a new vehicle.

VAT can be claimed back by VAT registered persons, and if done thus, charged out at the resale price when sold.

Non VAT registered persons can only pay VAT, not claim it back or recharge it.

While VAT registered persons will have to charge VAT on the sale price, NON registered persons can't.

Does this help?

Basically, you'll pay VAT if buying new, or from a business, but not a non registered bod.
 
However the VAT element of a car's purchase price is not lost on resale if it was a private purcahse in the first place, it's an urban myth that VAT is lost on a second hand car.
 
Now Bizarre......

The original poster decides to delete his post so we haven't really got a clue what he said - other than the subject.

So here you all are trying to second guess what he might have said and answer questions which he might - or might not - have asked.......

I'll never understand these forums thingies ......:D

Anyway, I can play too so i'll add another option.

If you trade in your vehicle and the dealer (VAT registered) subsequently offers it for resale I believe I am right in saying that his selling price will include VAT on the diffference between the price he paid you and the price he sells at - eg on the 'added value'. I may , of course, be wrong but who cares .....
 
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ROFL you are all answering a question that isn't there. Actually the question was is it illegal to drink a bottle of VAT 69 then drive a car.
 
As he lives

byron said:
ROFL you are all answering a question that isn't there. Actually the question was is it illegal to drink a bottle of VAT 69 then drive a car.
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The caribbean I am assuming he was looking to import something from here, I think he tried to post in the lounge, I think he has had too much Mount Gay again...
 
boatone said:
If you trade in your vehicle and the dealer (VAT registered) subsequently offers it for resale I believe I am right in saying that his selling price will include VAT on the diffference between the price he paid you and the price he sells at - eg on the 'added value'. I may , of course, be wrong but who cares .....
Click to expand...

According to a pal of mine who owns a second-hand Audi/VW business, that's exactly what happens. He's always moaning about the unfairness of it all because its assumed that the difference is all profit.
 
VAT can only charged on a used vehicle if that vehicle is a commercial vehicle and the seller is VAT registed, A dealer has to pay VAT on the difference between what he paid and what he sold it for this is on any used car
 
Not so, Crown plonker!**

As I said....

VAT applies to:

1/ New vehicles.
2/ Used 'VAT qualifying' vehicles*
3/Commercial vehicles sold by VAT registered businesses.

Therefore, exemptions include:

1/ All Vehicles sold by non VAT registered entities.
2/ Used cars sold by VAT registered entities which are NOT VAT qualifying.
3/ Exports. Mostly.

*VAT qualifying vehicles are those which have been registered and used by registered businesses, or persons, and resold to other VAT registered entities.


Trust me, I have been in the trade 30 years, and still am!

**Joke eh? LOLZ
 
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