Hi there - a quick query:
If a business buys a customer's car part exchange as part of the process of selling a new car to such customer, and then subsequently wants to offload the part exchange car to a third party business at the price it paid for the part exchange car, do they need to charge VAT on the sale? In fact, is VAT chargeable on the sale by the consumer to the business?
If VAT is chargeable, is there any way around this? What about if the consumer contracts directly with the 3rd party business who will then sell the car on autotrader of similar?
Thanks very much for your time.
Replies (2)
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Is your client using the 2nd hand car scheme?
If so then VAT only needs to be charged on the profit made on the sale of the PX vehicle