When a company purcashes a vehicle for employee company car purposes, after a period of time and correct BIK tax treatment, Is the resale of a company car VAT qualifying ?
SJ
Replies (3)
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If you mean ..
subject to VAT on the sale invoice ... then no. Strange question ...almost sounds like you want there to be VAT on the sale?
Thanks
No I dont want there to be VAT on the invoice, I just want to do the correct thing.
The full picture is more complicated than I painted, but didnt want to overburden on my 1st message !
Thanks for your help
Actually....
The sale of a company car can be subject to VAT under certain circumstances.
If the business was entitled to recover VAT on the purchase of the car then it must account for VAT when it is sold.
If the business was not entitled to recover VAT on the purchase of the car then VAT is not due unless the car is sold for more than it was purchased.
If the car is sold for more then it was purchased, VAT must be accounted for on the profit.
Regards,
Paul Taylor
Senior VAT Consultant
Dains