quick VAT question

[daveindales]

Funny, but Iv'e just read that link Steve. This was the 'bit more research' that I mention in previous post.

[likeitorlumpit]

sell it to someone who is VAT registered and the problem disappears:001_smile:

[GardenKit]

The vat on your first pickup was paid to HMRC when it was bought new.

At that stage you were not in a position to claim that back, so you lost it.

 

Subsequent sales will not attract VAT as it has already been paid in full. If a motor trader bought it from you he would not be able to charge VAT on it, so neither can you.

 

The motor trader would however hopefully make a profit on the sale and would be expected to pay HMRC the vat due on that profit. He would account for this on his 'secondhand goods margin scheme'.

But this VAT content would not be shown on his sales invoice to a subsequent buyer, so even if that buyer was VAT registered he could not reclaim the VAT content.

 

I'm pretty sure this an accurate description. Its what I would have to do on a mower.

[daveindales]

Gardenkit: That sounds right. Cheers

[Yorkshireman]

NO you dont if you sell it for less than you paid for it ...

 

however you may need to charge Vat on the profit,,,