Blogger
Share this content
0
6
3421

VAT on selling vehicle

We are selling a truck/lorry do we have to account for the VAT on it? My reading on it is that if we bought it 2nd hand then we dont otherwise we do. Is this correct?

Replies

Please login or register to join the discussion.

No

If you are VAT registered and are selling a commercial vehicle, then you charge VAT regardless of how you bought it, new or second hand.

Thanks (0)

VAT on selling vehicles

Thanks for the response.  There is no minimum level for charging VAT say above £1,000 as one of my colleagues has claimed?

Thanks (0)

Agree with above.

Thanks (0)

Nope

No, no limits, upper or lower.

Thanks (0)

Margin scheme

If you bought the vehicle second hand from a dealer selling it to you under the margin scheme then it is my belief that you can similarly sell it under the margin scheme.  The purchase invoice will confirm if this were to be the case.

Margin scheme: no VAT reclaimable on purchase, output tax on sale will be computed on the margin (difference between buying & selling price) where selling price exceeds buying price.

 

Thanks (0)

Very unusual

It would be very unusual, though not impossible, for a commercial vehicle to be sold under the margin scheme.

Thanks (0)