Flat rate VAT on disposal of car

Flat rate VAT on disposal of car

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A partnership client registered for VAT and joined the flat rate scheme.

At the date of registration they owned a car which had been bought second hand a couple of years earlier.

Do they need to return flat rate VAT on the sale of the vehicle even although the purchase pre-dates their VAT registration?

Any thoughts gratefully received.

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Teignmouth
By Paul Scholes
28th Apr 2015 23:45

Afraid so

Hi - this nasty topic raises its head every so often eg:https://www.accountingweb.co.uk/topic/tax/flat-rate-scheme-warning-vat-s...

The sale is an exempt sale and therefore is part of the FRS turnover.

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