How to avoid VAT when buying a van
Discussion
Buy from a private, no Vat registered keeper. If a company buy a commercial vehicle, they will pay the vat, and claim it back, when they sell the vehicle back (im a commercial dealer, I deal with it) they will invoice for the VAT from the garage.
We sell used vehicles as + Vat unless they come from a private individual, who cannot claim the VAT element back. So its being picky about the vans you look at.
We sell used vehicles as + Vat unless they come from a private individual, who cannot claim the VAT element back. So its being picky about the vans you look at.
DaveH23 said:
Buy 2nd hand.
Surely VAT is only paid once on the inital purchase so if you buy 2nd hand the Vat has already been declared.
It's not that simple - even a second hand van maybe liable for VAT , unlike cars.Surely VAT is only paid once on the inital purchase so if you buy 2nd hand the Vat has already been declared.
Easier to just read this thread : http://www.therevcounter.co.uk/general-mayhem/6323...
LouD86 said:
Buy from a private, no Vat registered keeper. If a company buy a commercial vehicle, they will pay the vat, and claim it back, when they sell the vehicle back (im a commercial dealer, I deal with it) they will invoice for the VAT from the garage.
Are you sure? I believe that when a VAT registered entity sells a van on which they have reclaimed the input tax, that they sell the vehicle (advertising it at an ex-VAT price usually) and then add VAT to this price, accounting for such on their invoice.
It makes no difference if they sell it for what they bought it for, but it makes a massive difference if theyre selling a van for £1,000 that they originally bought for £10,000...
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