"one private owner" AND "VAT qualifying" ?
Discussion
Hi all,
I am browsing cars (as always). We all know since the privacy changes previous owner info on V5 is redacted so you cannot tell if it was a company owner or a private owner anymore. Obviously a trader might show you the V5 in which case you can see if it was a private owner but I have noticed this scenario more than once:
Trader says "only one private owner" or similar. Obviously a meaningless claim but is implying the car was bought by an individual from new and used by that individual/their family.
However, they then later say (or say elsewhere) "VAT qualifying".
e.g. https://www.ebay.co.uk/itm/144020531230
Now, I have always understood VAT qualifying can only apply to a car/vehicle that has had the VAT reclaimed by the original owner, and therefore paid on the sale to the trader. Therefore the sale is still subject to VAT, and if another business buys it and can reclaim the VAT, they can do so.
By comparison a normal sale that has been through the hands of a private owner, the VAT is paid but cannot be reclaimed and therefore the car then is no longer VAT qualifying, and traders selling the car in the future deal on margin scheme for VAT (and a business buyer cannot reclaim VAT at all)
My point is, this seller claiming both "one private owner" AND "VAT qualifying" must be telling porkies and the original owner will be a company?
(most likely a leasing company or rental company in the case of cars, obviously any business in the case of vans/pickups etc)
Would appreciate someone with expertise to confirm this or correct my understanding!
Cheers - D
I am browsing cars (as always). We all know since the privacy changes previous owner info on V5 is redacted so you cannot tell if it was a company owner or a private owner anymore. Obviously a trader might show you the V5 in which case you can see if it was a private owner but I have noticed this scenario more than once:
Trader says "only one private owner" or similar. Obviously a meaningless claim but is implying the car was bought by an individual from new and used by that individual/their family.
However, they then later say (or say elsewhere) "VAT qualifying".
e.g. https://www.ebay.co.uk/itm/144020531230
Now, I have always understood VAT qualifying can only apply to a car/vehicle that has had the VAT reclaimed by the original owner, and therefore paid on the sale to the trader. Therefore the sale is still subject to VAT, and if another business buys it and can reclaim the VAT, they can do so.
By comparison a normal sale that has been through the hands of a private owner, the VAT is paid but cannot be reclaimed and therefore the car then is no longer VAT qualifying, and traders selling the car in the future deal on margin scheme for VAT (and a business buyer cannot reclaim VAT at all)
My point is, this seller claiming both "one private owner" AND "VAT qualifying" must be telling porkies and the original owner will be a company?
(most likely a leasing company or rental company in the case of cars, obviously any business in the case of vans/pickups etc)
Would appreciate someone with expertise to confirm this or correct my understanding!
Cheers - D
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