+ vat

Discussion in 'Motorhome Chat' started by pappajohn, Jun 20, 2010.

  1. pappajohn

    pappajohn Funster Life Member

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    never noticed before but is it usual to pay VAT on a used motorhome from a dealer ????
     
  2. Road Runner

    Road Runner Read Only Funster

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    Depends if its a used import.
     
  3. TomTee

    TomTee Deleted User

    Yes, but only on his profit margin. If he makes £5000 profit he has to charge VAT on that amount. It's the same with most second-hand goods if the dealer is VAT registered.

    Having seen the post above it's irrelevant if the 'van he's selling is an import or not. It applies to all used 'vans on which he makes a profit.
     
  4. hailman

    hailman Read Only Funster

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    I think the dealer PAYS VAT on his profit, he doesn`t charge Vat on top.


    I also think it might make a difference if he is selling to a company that is VAT registered, as some vehicles are described as `VAT qualifying`, which means the company purchasing the vehicle can reclaim the VAT, I think, so the vehicle could be advertised `plus VAT`.


    If all that is wrong I claim innocence on diminished responsibility. :)
     
  5. pappajohn

    pappajohn Funster Life Member

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    this was on a used RV at a dealers priced at £18,750 +VAT....all their stock is +VAT

    there'll be a big difference between VAT on £18,750 and VAT on his profit only.
     
  6. andyman

    andyman Read Only Funster

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    A lot of business people buy RV's and somehow launder then the the company, and then they can claim back the Vat.
     
  7. Geo

    Geo Trader - Funster

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    You may well be talking Castle Motors John??
     
  8. pappajohn

    pappajohn Funster Life Member

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    as the churchill bulldog would say " Ohhh Yes !"

    whats the score Geo ?
     
  9. TomTee

    TomTee Deleted User

    Nevertheless, that is the case. He can only charge VAT on the difference between what he paid for it and what he's selling it for. If however he buys a motor home from a trade source and pays the VAT (which he claims back anyway) he then has to charge VAT on the full amount.

    But if it's bought from a normal customer, he can only charge VAT on his profit margin. I'm pretty sure that's the case but one of our dealer members will soon put us right I'm sure.
     
    Last edited by a moderator: Jun 20, 2010
  10. TomTee

    TomTee Deleted User

    VAT is not reclaimable on private cars, only vans if I remember correctly.
     
  11. carl65

    carl65 Funster

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    Tuesday this could rise to 20% that will make a differance :Doh:
     
  12. craiggs

    craiggs Read Only Funster

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    vat

    you will pay vat on the full price if you are vat reg you can clame it back but if so when you sell you will charge vat

    But i think you are not so you would pay the vat 17.5 % on price and when you sold it you would just sell for a price
     
  13. pappajohn

    pappajohn Funster Life Member

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    i have found, on the net, that all caravans are subject to VAT, at a VAT registered dealers, regardless of how many previous owners which would point to the government collecting a large amount of cash on the same caravan over and over again.

    possibly this dealer is classing a motorhome as a caravan...not a motorcaravan.

    is that legal ?

    wont be using them anyway.
     
  14. Geo

    Geo Trader - Funster

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    Maybe he,s hoping you will add 17.5% to his asking price
    You will need to monitor every deal hes offering and ask what the vat would be on any given RV
    Heres the deal

    If you buy and sell second-hand vehicles you might be able to account for the VAT by using the margin scheme, but only if there is no VAT shown on your purchase invoice. When you sell a vehicle under the margin scheme, instead of paying VAT on the full selling price, you work out the VAT due only on the difference between what you paid for the vehicle and what you sell it for - your 'margin'. There is no VAT for you to reclaim.
    To be considered second-hand, a vehicle must actually have been driven for business or pleasure - it can't just have been registered and have delivery mileage.
    You'll usually be able to use the scheme for used vehicles you buy from:
    • private individuals
    • dealers who aren't VAT-registered
    • VAT-registered businesses who were unable to recover any input tax
    • dealers who are VAT-registered but who sell you vehicles that are eligible under the margin scheme - their invoice shouldn’t show any VAT and must have a statement that identifies the supply as being within the margin scheme
    You won't be able to use the scheme for a used vehicle where there is VAT shown on the invoice. If VAT is shown then you can reclaim this VAT in the normal way provided you meet all the rules for reclaiming VAT, but you'll have to account for VAT on the full selling price when you sell the vehicle
     
  15. jhorsf

    jhorsf Read Only Funster

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    Thanks Geo thats a lot clearer now:Doh::Confused:
     
  16. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

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    The only time a used vehicle would be plus VAT if it has previously been used exclusively for business purposes eg a hire van.

    When we sell off our hire vans we sell them at a VAT inclusive price unless it goes to another business user who wishes to reclaim the VAT again.

    Vans exported would also be VAT exempt, new or used (we would not have to pay VAT on margin)

    Peter
     
  17. pappajohn

    pappajohn Funster Life Member

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    thats what i thought.....wish i'd never asked now :Rofl1:


    so basicly Geo, you need to ask what the VAT is being charged on...the full price or his profit margin.

    all his stock wont have come from a VAT registered seller so if he's charging VAT on the full price he's pulling a fast one ????
     
  18. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

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    Oh most definately and I bet the blood suckers at HMRC would be MOST INTERESTED!

    Peter
     
  19. Geo

    Geo Trader - Funster

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    It would appear so:RollEyes:
    he wont get any recomendation from me after letting me set off on a 200 mile trip to view
    after getting an asurance no other views had or were taking place, he let me get 60 miles from his place before calling saying it was sold
    I think I asked too many questions and that was payback:Wink:
    Geo
     
  20. TomTee

    TomTee Deleted User

    What's the point of him charging more VAT than he has to? He has to pass on every penny of VAT that he receives to the Revenue and Customs so why would he make his prices more unattractive than they need be?

    The VAT he charges must be on his invoice and if he then pays the Revenue less by claiming that he charged less he is on very dangerous and criminal ground. Traders are subject to regular and searching VAT inspections.
     

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