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VAT payback on SALE and LEASEBACK

Client bought VAN in UK and claimed VAT. but later sale to EU company and leaseback. VAN using in uk

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One of my client bought few VANs in UK and claimed VAT. Few months later due to cash flow sold to one Dutch finance company and leaseback. Physically VANs have been using in the UK for his business. 

My query is whehther need to refund the VAT already claimed due to the sale. 

Thank you so much for your suggestion 

Replies (3)

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Scalloway Castle
By scalloway
04th Dec 2019 15:30

If he sold the van he should have charged VAT on the sale.

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By The Dullard
04th Dec 2019 15:51

Oops. Cashflow just got a little worse. Did he not take any advice at thetime?

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By Les Howard
04th Dec 2019 16:12

Presumably the sale of the vans is taxable. Zero-rating is not available since the vans are not removed to the Netherlands. (It is not a 'refund' of VAT.)
The hire from the Dutch finance company is chargeable to UK VAT (Sch 4A, para 3).

I wonder what the Dutch finance company are doing? Are they registered for VAT in the UK?

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