VAT at auction

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Mon 26 Mar 2001 12:07
VAT at auction - simon
What does it mean when an auction has a car that is "vat qualifying".
For example, say a car sells for its book price of £5000. As a private individual would i pay the hammer price of £5000 and then
pay 17.5% on top. Or is the vat included in the hammer price. If it is the latter,would these cars fetch a higher price since a person registered for vat could claim it back.
Many thanks
Simon
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Mon 26 Mar 2001 14:06
Re: VAT at auction - Andrew Bairsto
You pay the hammer price unless otherwise stated ,normally this applies to commercial vehicles
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Mon 26 Mar 2001 17:54
Re: VAT at auction - honestjohn
VAT qualifying means that the hammer price will include VAT separately itemised and a VAT registered business buying the car for business purposes only (ie to re-sell or to rent or lease out) can re-claim the VAT, but must then charge VAT at 17.5% on top of the price it sells the car for.

In a commercial vehicle auction, the vehicles are sold plus VAT, ie happler price plus 17.5%.

HJ
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