vat (1 Viewer)

[third van]

I dont know if any one can answer this question?
Im vat registerd and use my motorhome for work purposes,
I paid vat on purchase when NEW and reclaimed it
I am thinking of buying a new van and my accountant who is very good has said make sure the part ex price is plus vat as the dealer would then claim the vat element back
On speaking to a dealer he said there is no vat on a second hand van even though im vat registerd

 

[slobadoberbob]

the vat is on the margin

The second hand vehicle has VAT on the margin... so it is payable on the profit the dealer makes. But unless it carries vat as an extra to the total then you will not be able to make a claim as you will not know the actual amount.

I thought when you sold the item after claiming vat back you had to add vat to your sale price... i,e you could not sell it vat free?

But I am sure someone like Peter of J C Motorhomes will be able better to advise you.


Bob

 

[2657]

Your accountant is correct, the vehicle is part of your business and when you sell the sale price will include VAT. If you sell privately say for £18000 then the vat will be £3000 (£15000 +20%) which will have to be paid to HMRC.I think what your accountant is saying is that if you sell to a dealer then you may be able to sell for £18000 + VAT as the dealer may be able to reclaim the VAT but I doubt this very much, as far as I know motor traders have a complicated( to me) arrangement with HMRC to account for VAT. Plus dealers being dealers they will try and maximise their profits.

No offence to any of the dealers on this site who will no doubt come up with the definitive answer.

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[bobandjanie]

Hi, even though you plan to PX you are still, in essence, selling the vehicle and whatever price you get for it will have a VAT element in it. You will put it through your books with the VAT separated from the net. This you will take as monies received that you are just collecting for the tax man and so you have to hand it over to him. Of course, if you are buying new again and are still eligible to claim the VAT back on the new van you can do so: If you PX your old van at 21,600 including VAT (3,600 you owe the tax man) but the new van is £54,000 inc (VAT to claim back is £9000) The VAT man will owe you £5,400. Less the VAT on any profits you have made that quarter / year. Also, your accountant will be working out for you the value of your depreciating assets. If he has written off more than you 'lose' when you part exchange then that will be shown as a profit in your accounts. For that reason you probably ought to check that the PX value is not greater than what it has been written down to. If it is, you would do best to get the price of the new van down rather than the value of your old one up. Speak to your accountant again because what I have written is as clear as mud! Jane oh:

 

[buyer]

hi .i have been in the motor trade for 35 years and bobandjanes answer sounds:thumb: 100% to me

 

[TheDogMan]

1. I sold a caravan and had to declare it in my books and pay 20% to the VAT man as I had claimed VAT back when I purchased it.

2. If you buy a new motorhome you can claim back the 20% VAT

3. There is no VAT to claim back on a used motorhome from a dealer

4. I purchased a used MH from a guy who was VAT registered and had bought it through his motor racing business and I claimed back 20% VAT as I was using it as part of my business and it is an assett of my business.

5. If you sell to a dealer you will have to produce a VAT invoice if it is on your books and the selling price should include VAT at 20% which is payable to the VAT man.

those are the facts, the only question is can the buying dealer claim the VAT back and then only charge VAT on the margin which is officially called the "used car scheme" A question for Johns Cross ??

Dave

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