vat on used (1 Viewer)

Mothy

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And this is why, often when you trade in for new, car or motorhome, the agreed part exchange price won't be what appears on your invoice - a bit of shenanigans goes on so the dealer wins on the vat position.
Sorry buddy but some of what you say is correct but so much is mis-informed. I have been VAT reg. for 35 years and their are lots of wierd situations where unscrupulous people will try it on but surely any buyer parting with large amounts of cash would check all this out before parting with their money?
I believe we are out of sync with our replies as well mate. Sorry.
 
D

Deleted member 29692

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There are quite few ways a motorhome could end up as VAT qualifying.

There was a thread on here a while ago where a Funster (can't remember who, or the details. Not important to this.) was buying a new MH through their business to claim the VAT back.

That immediately becomes a VAT qualifying vehicle and when they sell it, no matter who they sell it to, they will have to raise a VAT invoice to the purchaser and charge VAT on the full purchase price. It will have to show on their books as such and the VAT charged will then have to be paid over on their next return. It is absolutely irrelevant whether or not the purchaser is VAT registered.
 
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I thought it would be a general view being discussed and not the tiny minority of ex rental vehicles.

Read the thread properly (y) Lots of scenarios are being discussed.

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Derbyshire wanderer

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And this is why, often when you trade in for new, car or motorhome, the agreed part exchange price won't be what appears on your invoice - a bit of shenanigans goes on so the dealer wins on the vat position.
Very true. My part ex price was written down but the new mh price was also reduced (the discount from list price).
I knew what they were doing but it made no difference to what I paid them in cash plus px.
 

Derbyshire wanderer

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Disabled benefit of no VAT is no longer! Vat cannot be charged on used vehicles. all VAT exchanges are between registered persons and Customs and excise and is not passed on to further buyers.
Possibly it is?
According to HMRC it is if adapted for disabled use ie a wheelchair new purchases are vat free as I said earlier. This is not applicable on sh sales
 

Gorse Hill

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Possibly it is?
According to HMRC it is if adapted for disabled use ie a wheelchair new purchases are vat free as I said earlier. This is not applicable on sh sales
Are you saying that if a individual who is not VAT registered gets the vechicle from new but it is VAT free (disabled) then when he/she goes to sell the vechicle after 3 years there's no VAT to pay by the dealer
Thks

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Mothy

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All the correct scenarios and most of the wrong answers are within the thread but applied by different Funsters.
Let's just all pay out as little as possible and enjoy our motorhomes as much as we can. Would hate to feel Funsters were falling out over someone else's VAT question. It is such a complex thing which was pointed out early on that one needs much specialist knowledge for complete clarification.
 

Mothy

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None of us want to pay it I suppose. am new on here and would hate to upset anyone with my opinions. Just wanna' have fun and learn from others about motorhoming in general.

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Derbyshire wanderer

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Are you saying that if a individual who is not VAT registered gets the vechicle from new but it is VAT free (disabled) then when he/she goes to sell the vechicle after 3 years there's no VAT to pay by the dealer
Thks
If I understand it correctly, a vehicle especially modified ie wheelchair access 'for the use of a disabled person' is able to be bought new at net cost. This means that the dealer does not charge the purchaser or pay HMRC any vat.
If sold, the purchaser sells at whatever they can get for it but there is no vat to pay ie you possibly could get all of your money back if lucky with the sale price.
As said above, the rules are complicated and if you think you would qualify, professional advice should be sought before parting with your money.
 
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Can I throw another worm in

Do you pay full vat on a vehicle purchased at auction

Or just on the auctioneers charge

Or a charge for both ie 20% + 20 % of commision

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DanielFord

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Can I throw another worm in

Do you pay full vat on a vehicle purchased at auction

Or just on the auctioneers charge

Or a charge for both ie 20% + 20 % of commision
Wow that is a big worm. I would think that VAT is only applicable to the auctioneers fees, since the rest will go to the vendor. The auctioneers fees would come under professional fees, and would thus be VATable IMO. That is not something I have ever come across, so I can't substantiate my answer.
 

vwalan

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just start your own business register for vat . claim as much as you can back . but never sell hardly anything . its all legal.
after all you had a good idea but it might have failed . claim your losses off the tax you pay in your paye employment .
use the system . dont let the system use you.
it takes a few years as it might pick up.
 

Paddywack

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just start your own business register for vat . claim as much as you can back . but never sell hardly anything . its all legal.
after all you had a good idea but it might have failed . claim your losses off the tax you pay in your paye employment .
use the system . dont let the system use you.
it takes a few years as it might pick up.
The vat you "claim back" is the increase in value between input and output prices, hence why the marginal scheme was introduced for second hand. If you "sell hardly anthing" no difference between input and output vat nothing to claim. Prior year losses is another game altogether.

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D

Deleted member 29692

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Can I throw another worm in

Do you pay full vat on a vehicle purchased at auction

Or just on the auctioneers charge

Or a charge for both ie 20% + 20 % of commision

Wow that is a big worm. I would think that VAT is only applicable to the auctioneers fees, since the rest will go to the vendor. The auctioneers fees would come under professional fees, and would thus be VATable IMO. That is not something I have ever come across, so I can't substantiate my answer.

I don't know about vehicle auctions specifically but that's certainly the case in other types of auction.
 
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It's called Value Added Tax for a reason.

Every time a Vat registered business buys something & then sells it on, it pays over 20% of the increase in value while it is in that business' possession. Eventually, the goods are sold to a final customer who is not Vat registered, so they can't recover the Vat & the government gets to keep all the little bits it has gathered along the way.

To the final customer, it doesn't matter whether Vat is charged on the full price or on the dealer's mark-up - the cost to them is the same.

Example - you go to buy a van & the dealer wants £24000. Included in that is a mark-up to his business of £5000.

He needs to have bought the van in for £18000 to made his £5000 increase, because he will have to pay 20% on top of his £5000 mark-up in Vat. £18000 + £5000 increase + £1000 Vat = £24000.

If the vehicle was Vat-qualifying, it comes to the same thing.
He would still have bought it for £18000, but made up of £15000 for the van +£3000 Vat that he would recover from HMRC. He then adds his 5 grand & sells it for £20000 + 20% = £24000 & pays over £4000 to HMRC.

Either way, HMRC get their £1000 on the £5000 increase in value.

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GWAYGWAY

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I think that if importing from Germany the NEW van is VAT refundable and you pay UK HMRC the full 20% on the price but you got the German tax back or not paid in first place.. That I understand. BUT if you buy secondhand from them they do not have the same system of VAT on the profit so charge the full 19% on the price which is not refundable to us But UK custom do not charge if over ^months old and 6000 miles. So secondhand from German Dealer is a no no as the tax is way higher???????????
 

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