Quizzes & Puzzles3 mins 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
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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.