VAT Qualifying Cars

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Wed 10 Dec 2003 14:01
VAT Qualifying Cars - Quinny100
I'm looking to have a bid on a car at auction this week, its an ex lease car and is therefore VAT Qualifying.

Am I right in my interpretation that all this means is that 17.5% of the hammer price will be shown on the invoice as VAT?

For example, hammer falls at £11,750 - Invoice says:
Car £10000
VAT £1750
Total Due £11,750 (I've left the buyers fee out for simplicity)

I think I'm right with the above, and not that the hammer price is plus VAT @ 17.5%.

Thanks for any help.
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Wed 10 Dec 2003 14:04
VAT Qualifying Cars - T Lucas
That is correct,the VAT qualifiers are inclusive of VAT at the hammer price.
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Wed 10 Dec 2003 15:04
VAT Qualifying Cars - alan kearn
I am not sure if you can recover the vat back on the purchase price of a car even if it is for business use. I seem to remember that when i bought a new Land Rover LWB County Station Wagon in 1988 that i was allowed to recover the vat because of the number of seats it had. If i had bought a SWB version with 7 seata i would not have been able to recover the vat. Also dont forget you have to be registered with Customs and Excise to be able to claim the vat back . When you eventually sell a vehicle that you have recovered the vat on you will have to pay back to Customs and Exise the vat content of the of the price you get for the vehicle.
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Wed 10 Dec 2003 17:10
VAT Qualifying Cars - Quinny100
You only get VAT back on cars purchased by a businss if you are leasing or hiring them, if they are for use in the course of your own business you are not allowed to get the VAT back.

If you are a trader, you can get the VAT paid on your stock back, but of course if you do so you must account for VAT when you sell the car.

At work we all run Nissan Terrano Vans as our company vehicles, but we have the seats left in the back. As far as C+E are concerned, if its registered on the V5 as an LCV you can get the VAT back. We also pay a much reduced amount of BIK tax on them over the "car" equivalent.

Reason I asked regarding the hammer prices is that I work in the Agricultural machinery game and any sales conducted in this area are all hammer price plus 17.5% VAT plus buyers premium (usually 10%.
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Wed 10 Dec 2003 17:34
VAT Qualifying Cars - alan kearn
Unless i am mistaken you can recover vat on any type of van because they are classed as commercial vehicles but you are still required to have your business registered with Customs and Excise
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