vat question?

[daveindales]

I'm vat registered, If I buy a commercial vehicle with no vat on it (L200 by the way) do I charge vAT on it when I sell it? I presume so, but can anyone clarify this?

[skyhuck]

Yes you do.

 

The person selling it to you must not have been VAT registered so could not charge the VAT.

[Stephen Blair]

If in doubt, call the Vat folk and they will tell you, always very helpfull

[upagreen1]

lots of info here

[John Russell]

I'm vat registered, If I buy a commercial vehicle with no vat on it (L200 by the way) do I charge vAT on it when I sell it? I presume so, but can anyone clarify this?

 

What I'm about to write only applies to commercial vehicles.

 

It's important to ask the person who is selling it to you whether he's vat registered. If he is he should itemise the vat on the invoice to you. You can then claim that vat back on your next return. When you come to sell the vehicle you must also charge vat on it if you are vat registered.

 

If you buy a commercial vehicle from someone who is not vat registered you cannot claim any part of the purchase price as vat. However I don't know for certain whether when you come to sell it, you, as a vat registered person, have to put vat on a commercial vehicle that you bought without vat on it -- check with your accountant or the vat helpline on 0845 010 9000.

 

Best wishes,

 

John Russell

[scraggs]

As skyhuck says, yes you do charge it when you sell it if you are VAT registered, if you are not or are on agri/forestry VAT flat rate scheme then you don't

[likeitorlumpit]

Similarly if someone gives you something for free- say a chainsaw

You then sell it to someone- you will have to account for the vat

One more example of us being tax collectors:sneaky2:

There are ways round this but they are frowned upon

[daveindales]

sounds like what I originally thought, charge VAT but will have a work with HMRC first

[skyhuck]

As skyhuck says, yes you do charge it when you sell it if you are VAT registered, if you are not or are on agri/forestry VAT flat rate scheme then you don't

 

If your on the flat rate scheme you would still charge VAT on the sale.

[scraggs]

If your on the flat rate scheme you would still charge VAT on the sale.

 

I beg to differ, you can only charge VAT on products & services if you are on the flat rate scheme.

 

"5.2 Adding the flat rate addition to sales

You do not have to add the flat rate addition to your sales, but when you do, you may

keep it. However, you must not charge the flat rate addition on sales of:

• machinery; or

• land, and the repair and maintenance of farm buildings belonging

to other farmers.

And you must not charge the flat rate addition on sales to:

• people who are not registered for VAT; or

• other flat rate farmers."

Edited June 25, 2011 by scraggs