selling an item, do you add VAT?

[nick channer]

This is also my understanding of the situation.

 

this is correct.. i bought a 90 land rover with no vat.. went to sell it to large landrover dealer and they told me cant charge vat if didnt pay it even if i'm vat registered..

[gensetsteve]

My understanding is if you bought a commercial vehicle for you business and they were not vat reg ie no vat should you come to sell it you would have to add vat. Which seems odd and have never had a straight answer from anybody in the know. So 20 years on still dont know.

[daveindales]

If you are VAT registered and buy a secondhand vehicle without VAT, if you then sell it do you have to add VAT?

 

If you were not VAT registered when you bought the vehicle, and now are VAT registered, you do not have to charge VAT on it when you sell it. I know because I was in this situation and rang HMRC.

 

I'm not sure about if you bought it when you were VAT registered though

[farmer_ben]

If you were not VAT registered when you bought the vehicle, and now are VAT registered, you do not have to charge VAT on it when you sell it. I know because I was in this situation and rang HMRC.

 

I'm not sure about if you bought it when you were VAT registered though

 

But if you were VAT registered when it was bought and now selling on i do believe you do add VAT, may be wrong. But i think thats how it is.

[farmer_ben]

Am I right in saying that everything i sell as a business I add VAT too, this is how i understand it and how i have always done it. so if i buy 1000 log nets whole sale for example from non-VAT registered producer i should add 5% to final user? I had never doubted things till reading this thread!

[gensetsteve]

Am I right in saying that everything i sell as a business I add VAT too, this is how i understand it and how i have always done it. so if i buy 1000 log nets whole sale for example from non-VAT registered producer i should add 5% to final user? I had never doubted things till reading this thread!

 

Yes you are right. But just to confuse it even more if you sold me 500 of them and I told you I was going to sell them on you would have to add 20% vat. But what if I was a pub.

[farmer_ben]

Yes you are right. But just to confuse it even more if you sold me 500 of them and I told you I was going to sell them on you would have to add 20% vat. But what if I was a pub.

 

yeah i add 20% to the farm shop i sometimes supply, only normally put 5% on the pubs invoice.....is this wrong then?>

[firewood]

My understanding is if you bought a commercial vehicle for you business and they were not vat reg ie no vat should you come to sell it you would have to add vat. Which seems odd and have never had a straight answer from anybody in the know. So 20 years on still dont know.

 

That is correct. If you are vat reg. And buy without vat, when you sell you must add vat unless the item is zero rated or exempt .

 

http://www.kinnoirwoodfuel.co.uk

[WorcsWuss]

VAT.... perpetually confusing.... Just read the catalogue for Brightwells 4x4 auction... some VAT reg'd vendors sell vehicles with VAT included [the sale price includes 20% VAT which can be claimed back if you're registered], PLUS VAT, [20% will be added to the sale price which you can claim back if registered] or, most interestingly, NO VAT. I think this is something perculiar to traders in that if a vehicle is purchased by a non-VAT registered individual or organisation originally, the VAT is paid and the revenue take no interest in it from then on, just like a normal car, but the fact that the trader is VAT registered is irrelevant.....

With commercial vehicles it seems that once VAT has been paid and not reclaimed, the revenue are happy, I don't believe that VAT can be claimed by the revenue [or rather 'not reclaimed'] more than once on a commercial vehicle.

Curiously, a vehicle which starts off as a commercial [Discovery Commercial for instance] is liable for VAT if converted back to a passenger car for the first 14 months or 2 years [i forget exactly what] of it's life. So, you can buy a Disco commercial as a business and claim the VAT back. If you add seats & windows in the first year or so then technically you owe the revenue the VAT. After that period though then you don't so for the first owner it's a good way of claiming the VAT back on a 'car'.

[firewood]

Am I right in saying that everything i sell as a business I add VAT too, this is how i understand it and how i have always done it. so if i buy 1000 log nets whole sale for example from non-VAT registered producer i should add 5% to final user? I had never doubted things till reading this thread!

 

Correct. Charge at 5% for end user / burner but at 20% if selling to another trader or retailer.

 

http://www.kinnoirwoodfuel.co.uk