Newbie with a VAT query

[tomd89]

Hi All,

New the forum and this is my first post.

Just put a deposit down on a T6 Kombi which I hope to convert in to a camper. I collect the van on Friday and cannot wait!

Just about to transfer the remaining balance to the dealer and have a quick query about the VAT. I understand that the price of the van is advertised price + VAT, since it's a commercial vehicle/garage.

However, I was sold a few 'retailer options' which include things like an extended warranty, service pack, HPI check and paintwork protection. Having studied the invoice a bit more closely, it seems these 'extras' have been included in the VAT calculation. Just wondering if this is correct, or if I should just be paying VAT on the van itself?

Thanks!

 

[Deaky]

Most things have VAT on them and in a commercial setting you expect prices quoted to be EX VAT as in most cases the VAT is reclaimed. It's normal in a public retail setting ie general shops that the VAT on an item is included in the purchase price so you're not really aware of it but it is there.

VW transporters are commercial vehicles and as they are primarily aimed at business, all the prices the dealer quotes will be EX VAT

 

[tomd89]

Most things have VAT on them and in a commercial setting you expect prices quoted to be EX VAT as in most cases the VAT is reclaimed. It's normal in a public retail setting ie general shops that the VAT on an item is included in the purchase price so you're not really aware of it but it is there.

VW transporters are commercial vehicles and as they are primarily aimed at business, all the prices the dealer quotes will be EX VAT

Thanks for the response. Makes sense and I expected that might be the case.

 

[Jayjmac]

Hi,

you will pay VAT on everything from a dealer who is VAT registered. They will just add it all as one to the invoice.

 

[Jayjmac]

I half wrote this then replied later... exactly as @Deaky said put much better than me

 

[DIGGY]

I'm doing the same, but what happens if I sell the van to someone else privately is the Vat element no longer a thing?

 

[Paynewright]

From what I understand if a vehicle has not had the vat claimed back by the original purchaser the garage cannot charge vat again - if you look at VW used vehicles some are listed as gross non vat qualifying and that is the price you pay for the van.

 

[jimc91]

I'm doing the same, but what happens if I sell the van to someone else privately is the Vat element no longer a thing?

If you purchased the van as part of a vat registered business and claimed the vat back then when you sell it you have to charge vat even if its a private sale

 

[Skyliner33]

If you purchased the van as part of a vat registered business and claimed the vat back then when you sell it you have to charge vat even if its a private sale

How does this work.
ie Pay £50k for a van. Claim £10 VAT back (therefore paid £40k for the van).

! month later sell van privately for 38K plus the vat (= £45.6k) therefore made a 5.6k profit?

Obviously Im misunderstand somewhere?

 

[jimc91]

How does this work.
ie Pay £50k for a van. Claim £10 VAT back (therefore paid £40k for the van).

! month later sell van privately for 38K plus the vat (= £45.6k) therefore made a 5.6k profit?

Obviously Im misunderstand somewhere?

cause when you sell the van you charge vat which you pay over to HMRC - input tax and output tax,

 

[663ad]

If you paid £50,000 in total assuming vat is on invoice, you would have paid £41666.67 + vat. Assuming you’re VAT registered the following applies. Claim on return would be £8333.33. Nett cost therefore £41666.67.
Selling for £38000 + vat would mean a loss of £3666.67. The vat as previously mentioned would have initially claimed £8333.33 and then collected at sale and £7600.00 repaid to HMRC on next return.