Discussion in 'Motorhome Chat' started by pappajohn, Jun 20, 2010.
never noticed before but is it usual to pay VAT on a used motorhome from a dealer ????
Depends if its a used import.
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.
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.
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.
A lot of business people buy RV's and somehow launder then the the company, and then they can claim back the Vat.
You may well be talking Castle Motors John??
as the churchill bulldog would say " Ohhh Yes !"
whats the score Geo ?
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.
VAT is not reclaimable on private cars, only vans if I remember correctly.
Tuesday this could rise to 20% that will make a differance oh:
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
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.
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:
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
Thanks Geo thats a lot clearer nowoh::Confused:
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)
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 ????
Oh most definately and I bet the blood suckers at HMRC would be MOST INTERESTED!
It would appear so
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:
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.