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vat - Andy Bairsto
A recent thread I talked about a vat fiddle with pre reg cars.The answer I have from accountant is that the garage registers the car and pays the vat at cost price.You buy what is in legal terms a second hand car but pay full vat at the retail price the dealer pockets a nice wedge.
Re: vat - Alvin Booth
Andy,
Thats a great one really. The only loser is Gordan Brown I hope!!!!!.

Alvin
Re: vat - honest john
This is a pretty good way for the garage concerned to have its entire stock confiscated by H.M. Customs and Excise.

HJ
Re: vat - Keith Bassett
How does VAT work on second hand goods? Surely, 17.5% VAT isn't payable in full every time a car is sold by a dealer. No mention of VAT on my Trade Sales invoice. They obviously pay VAT on the import price, add a bit of profit and sell it on to me. Perhaps VAT is payable on their profit.

Surely no dealer would be so foolish as to issue an invoice showing VAT which he has no intention of passing on to C & E.
Re: vat - mike harvey
VAT is paid by dealers on the difference between buying and selling price. This is a concession to normal VAT rules on adding VAT to the whole selling price, as in other goods. There are strict rules regarding records and accounting if this concession is to be allowed, otherwise VAT would be payable on the whole selling price. Dealers can minimise the VAT payable by manipulating buy in figures for part ex's, often by reducing the purchase price of a new car and reducing the part exch. price by the same ammount.The balance remains the same for the customer, but the VAT payable by the dealer can (not always) be reduced. I always felt honour bound to pass some of this saving onto the customer! Honestly!
Mike
 

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