Hi. My client is a charity shop selling mainly furniture and other household goods and we're clear on the VAT position on the sale of new and donated goods but they have now asked me the following questions:
1. Do they have to charge VAT on the sale of reconditioned stock [white goods] bought in from a co-coperative who specialise in refurbishing and selling on used or rejected goods and
2. If they buy these direct from the manufacturer i.e. Grade R etc from Hotpoint, Whirlpool etc; are they 'exempt' in that case?
As background, the co-operative has advised my client that they believe my client is exempt from charging VAT on the sale of these items but despite conducting some research of my own, I haven't found anything that blanket supports this assertion. Has anybody any experience of a similar situation to point me in the right direction?