VAT implications of commercial vehicle for private use
VAT implications of commercial vehicle for private use
Author
Discussion

CanoeSniffer

Original Poster:

952 posts

117 months

Friday 6th September 2024
quotequote all
Hi all, I'm considering purchasing an 18t ex-removals lorry for conversion to a race van. Upon purchase I would be re registering the vehicle from it's commercial status to private, either registering as private use HGV or as a motorhome if it's eligible (which I think it would be as it would be converted with all amenities).

I will be purchasing from a VAT registered business who will add VAT to the sale price of the vehicle, I am unsure if I am liable for the tax being an entirely private enterprise with no commercial purpose. Am I liable for the VAT initially and would I be eligible to claim it back in any way?

Thanks for any response. Mike

twing

5,806 posts

161 months

Friday 6th September 2024
quotequote all
No, if it's qualifying you'll have to pay it and suck up the VAT loss.It's future use is irrelevant I'm afraid

trickywoo

14,220 posts

260 months

Friday 6th September 2024
quotequote all
twing said:
No, if it's qualifying you'll have to pay it and suck up the VAT loss.It's future use is irrelevant I'm afraid
Bingo. Right answer.

The only 'out' option would be to buy it via a VAT registered entity.

CRA1G

7,247 posts

225 months

Friday 6th September 2024
quotequote all
Yes as said it is irrelevant what you intend to use it for the VAT still needs to be added on the sale price and you can't reclaim it.

Eric Mc

125,724 posts

295 months

Friday 6th September 2024
quotequote all
As you, the buyer, are a non VAT registered person, the seller MUST add VAT to the sale price of the vehicle.

The same would apply if it was a washing machine or a fridge.