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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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.