Film, Media & TV1 min ago
VAT on vans
can anyone tell me why some vans you have to add VAT to the price and some you don't.
I have been looking on ebay and autotrader about buying a van just for personal use not for a business, and most say + VAT and some say NO VAT, just wondered what the reason was.
many thanks
I have been looking on ebay and autotrader about buying a van just for personal use not for a business, and most say + VAT and some say NO VAT, just wondered what the reason was.
many thanks
Answers
Best Answer
No best answer has yet been selected by bongoboy. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.beg to differ on that ummmmm ALL new vans/commercial vehicles are subject to vat as a majority are sold to businesses as it is reclaimable.
http://www.hmrc.gov.u...otors/what-is-car.htm
http://www.hmrc.gov.u...otors/what-is-car.htm
It is basically to do with payload and loadbed size.
Vehicle bought new for commercial use which meets the requirements (something like capable of carrying 1 ton but dont quote me) company offsets (claims back) VAT. So when sold on is sold Plus VAT.
Vehicle too small / bought privately when new, VAT included in price not reclaimable so sold "without vat" - although a dealer has to actually pay vat on the margin.
Vehicle bought new for commercial use which meets the requirements (something like capable of carrying 1 ton but dont quote me) company offsets (claims back) VAT. So when sold on is sold Plus VAT.
Vehicle too small / bought privately when new, VAT included in price not reclaimable so sold "without vat" - although a dealer has to actually pay vat on the margin.