VAT?
- Thread starter Dpm0202
- Start date
Hi, are you vat registered? If so you can claim back the vat on the van after you buy it. If not you can't charge vat so no.
The seller needs to be VAT registered to charge you the VAT....if it's a dealer it's probably safe to assume they are but check.
Commercial vehicles are VAT qualifying so that VAT registered businesses can claim the VAT back on the amount that they depreciate over the time they own them.
When the first owner buys it, he claims back all of the VAT on the purchase price. When he sells it, he has to sell it plus VAT. He then has to include that VAT amount on his next VAT return, therefore pays that amount back to HMRC. And so it goes on, until a private individual buys it (you) and cannot claim the VAT back. As you will have paid all of the outstanding VAT, it is no longer VAT qualifying, even if you sell it to a business.
When the first owner buys it, he claims back all of the VAT on the purchase price. When he sells it, he has to sell it plus VAT. He then has to include that VAT amount on his next VAT return, therefore pays that amount back to HMRC. And so it goes on, until a private individual buys it (you) and cannot claim the VAT back. As you will have paid all of the outstanding VAT, it is no longer VAT qualifying, even if you sell it to a business.
Sorry totally daft question then, if I've paid 40k Inc vat and it looses for arguments sake 5k in deprecation so now £35k, when I come to sell is it advertised at that regardless of the vat paid or does the vat need to also be taken off that obviously making it more depreciated
Sorry I don't know why my tiny brain can't understand it ha
Sorry I don't know why my tiny brain can't understand it ha
You can sell the van for however much you like. You just can't say +vat. But if you can sell it at a price that covers the vat you paid that's ok.
Thanks johny for that help
Thanks dubber, I didn't understand it but that's made it more clear mate
Compromise is key to ensuring your pool of potential vans is as large as possible.
My advice is:
(1) Make a list of everything your ideal van should have/should be.
(2) Review your list and place each item on that list into one of the following categories:
- Category 1 - things about the van that are [practically] impossible to change (e.g. length of wheelbase, transmission type, single or twin sliders, etc.)
- Category 2 - things about the van that are very difficult or prohibitively expensive to add (e.g. air con)
- Category 3 - everything else
(4) Give each item in category 3 a weighting between 1 and 100 - the more important it is to you, the higher the weighting (e.g. FSH may be 100, whereas the colour maybe 5)
Items remaining in categories 1 & 2 are your primary search criteria and can be used to identify your pool of potential vans
Items in the category 3 are your nice-to-haves and can be used as a form of tie-breaker when comparing vans within your pool.
You're probably already doing an informal version of the above, but, if you're anything like me, adding structure helps focus on what's really important and it removes some of the emotion from the process.
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