Sole trader sells Van - VAT or no VAT
anniem
Registered Posts: 1,326 Beyond epic contributor ๐งโโ๏ธ
I know there isn't VAT on second hand cars, but if a VAT registered sole trader sells his VAN, is there VAT on that?
FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
0
Comments
-
Yes, there is0
-
Great, thank you Bluewednesday - I thought so, just wanted to double check.FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire0
-
Hi Anniem
There is also VAT on the profit of second hand cars - ie the trader0 -
Presumably VAT was recovered when he purchased the van.
Regards
Dean0 -
Vat isnt recoverable on car or van purchases0
-
Yes, VAT registered 'plumber' can claim the VAT back on the purchase of the van, but will need to charge it on the sale of the van too!0
-
I've got it in my head that you have to charge VAT on the sale of a van if you could have recovered VAT on the purchase of it. ie if you bought a van in 2005, became VAT registered in 2011 and sold it in 2012 then you wouldn't have to charge VAT, but if in the same example you became registered for VAT in 2006 then you would have to charge VAT on the sale regardless of whether you did actually reclaim the VAT on your first VAT return or not.
But I stand to be corrected, it's been a while since this situation has occured, and it may not even be relevant to the original poster.0 -
may not even be relevant to the original poster.
Thanks for all the useful replies, my chap was registered for VAT when he bought the van brand new 4 years ago, just wanted to confirm that he needs to charge VAT on the sale now it is second hand.FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership