VAT De-registration- Motor Co using Margin Scheme

Can anyone advise process for VAT de-registration for Second hand Car dealer using the Margin Scheme

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As VAT is claimed on the Second hand Cars only at the Sale of the vehicle, how should stock be treated when the business is de-registered for VAT. Any help or information would be appreciated.

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By Cheshire
27th Jun 2017 21:22

Vat guide 718 or speak to your accountant

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RLI
By lionofludesch
28th Jun 2017 08:26

You're wrong in your analysis that input tax is claimed on the sale of the vehicle. There is no input tax - most of these cars will be sold to the trader by unregistered persons for a start.

Deregistration has no effect on stock and vice versa.

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Replying to lionofludesch:
chips_at_mattersey
By Les Howard
28th Jun 2017 10:54

Unless any are qualifying cars on which you were charged VAT, and whose net value exceeds £5,000.

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