2006-11-01 03:55:28 · 9 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
The dealer does not charge you VAT on a s/hand car,but if he is VAT registered he will have to pay VAT.
He only pays VAT on the profit he makes from the sale.
e.g. Dealer purchase price £1000
Sale price £1470
Gross profit £470
VAT payable by dealer £70
Obviously more things can be factored into the profit margin,like some new parts or cost of warranty etc,but this is the general idea.
As the VAT is not a seperately listed item on the sales invoice as a customer you are unable to claim it back.
Hope this helps.
2006-11-01 07:13:22 · answer #1 · answered by jixer 3 · 1⤊ 0⤋
It depends. Generally the answer is no. This is because if input tax has not been claimed on original purchase of the car then VAT is blocked from being charged on the sale. Most businesses (as well as consumers) are unable to claim VAT on a car when they purchase it. This means that from that point on VAT will never be charged on the sale of the car. If, however, the car has been bought from a business that has been allowed to claim VAT on the purchase (e.g a driving instructor) then the business must charge VAT on the sale of the car. The dealer can then reclaim the VAT and charge VAT on the sale of the car.
In the majority of cases the dealer will be on the second-hand car scheme. This means that he will have a specialist invoice. VAT will not be charged on the sale, and he will work out how much VAT to charge based on the profit for each car.
2006-11-02 11:13:37 · answer #2 · answered by Nearly Ninja 1 · 0⤊ 0⤋
Unless it is a commercial vehicle they are not allowed to charge VAT on second hand goods.
2006-11-01 08:13:10 · answer #3 · answered by Anonymous · 1⤊ 0⤋
I bought one a couple of weeks ago and did not pay VAT.
There is no VAT on the invoice.....
2006-11-01 04:09:07 · answer #4 · answered by starofsall 2 · 0⤊ 0⤋
in case you weren't given the place of work work for the three month guarantee - then you definitely have not have been given any guarantee. Get the brakes taken care of asap. The brake grasp cylinder is leaking and could must be replaced - probably the servo besides.
2016-10-21 02:20:21 · answer #5 · answered by ? 4 · 0⤊ 0⤋
What is vat?
2006-11-01 04:18:53 · answer #6 · answered by J P 7 · 0⤊ 0⤋
no, you only pay vat if it is a van, lorry etc
2006-11-01 04:19:00 · answer #7 · answered by Anonymous · 0⤊ 0⤋
vat?
2006-11-01 03:56:24 · answer #8 · answered by panthrosbulge 3 · 0⤊ 0⤋
yes they have to
2006-11-01 04:11:27 · answer #9 · answered by lost 2 · 0⤊ 2⤋