What’s the crack with VAT on VW Shuttles ? Broad question I know but the Shuttle is M1 class so how can Garages & individual sellers add VAT to the price? Is it just to spark your interest or just trying to rip you off as you wouldn’t advertise a car then add the VAT ? Just had a conversation with a dealer but walked away. Thoughts ?
VAT on VW Shuttles
- Thread starter DadOFMook
- Start date
Lots on VW used as ‘Gross non vat qualifying’ meaning the price you see is the price you pay!
Not that in any way I’m classed as commercial but my Kombi is 
... A Bus which essentially is what the Shuttle is ...and the Caravelle a posher bus ...both if sold via commercial business .. You then have to pay VAT....but the waters change once the vehicle is sold via a private buyer
Having paid my self £7k in vat ....for a vehicle that’s just for pleasure and leisure it hurts....but I wouldn’t have my van
... A Bus which essentially is what the Shuttle is ...and the Caravelle a posher bus ...both if sold via commercial business .. You then have to pay VAT....but the waters change once the vehicle is sold via a private buyerHaving paid my self £7k in vat ....for a vehicle that’s just for pleasure and leisure it hurts....but I wouldn’t have my van
Lets say the original price inc VAT was £40,000. If the purchasers were VAT registered, they would claim back £6,666 of VAT. If they then sell it for £30,000 inc VAT, they would have to pay £5,000 VAT back to HMRC. You can't have all the VAT back off the original purchase, just the VAT off the £10,000 depreciation. When the dealer who buys the van sells it for say £27,000 plus VAT, he will have claimed the £5,000 back from his purchase price, but will be then liable to pay £5,400 on his next VAT return to HMRC.
This whole cycle carries on until someone buys it, but doesn't claim back the VAT element. Then, the van is no longer VAT qualifying, and VAT cannot be charged.
This whole cycle carries on until someone buys it, but doesn't claim back the VAT element. Then, the van is no longer VAT qualifying, and VAT cannot be charged.
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