buying a van at vehicle - VAT question

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Mon 25 Jul 2016 00:06
buying a van at vehicle - VAT question - daveyK_UK
Hi,
my friend is planning on buying a 5 year old van at a car auction this week.

the vehicle is 'VAT qualifying net' thus he will have to pay VAT on the hammer price as he is not a trader.

how does it work? do they simply add the VAT to the hammer price and buyers fee total?
or is the VAT 20% only on the hammer fee and not the buyers fee?

how old does a van need to be before it is no longer VAT qualifying?


Edited by daveyK_UK on 25/07/2016 at 00:08

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Mon 25 Jul 2016 00:32
buying a van at vehicle - VAT question - RobJP

The buyer's fee normally is subject to VAT - it certainly is at BCA, for example

www.british-car-auctions.co.uk/Global/UK/Buyers%20...f

As to age of the van, that is irrelevant as to whether the VAT can be recovered or not. In any repsect, if it was not VAT qualifying it would just mean that a VAT registered buyer would not be able to recover the VAT element, itwould not make the van 20% cheaper.

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