Sole trader sells Van - VAT or no VAT

anniem
anniem Registered Posts: 1,326
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

Comments

  • Bluewednesday
    Bluewednesday Registered Posts: 1,624
    Yes, there is
  • anniem
    anniem Registered Posts: 1,326
    Great, thank you Bluewednesday - I thought so, just wanted to double check.
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • JonesS
    JonesS Registered Posts: 1 New contributor ?
    Hi Anniem
    There is also VAT on the profit of second hand cars - ie the trader
  • Dean
    Dean Registered Posts: 646
    Presumably VAT was recovered when he purchased the van.

    Regards

    Dean
  • anniem
    anniem Registered Posts: 1,326
    JonesS wrote: »
    Hi Anniem
    There is also VAT on the profit of second hand cars - ie the trader

    I didn't know that. Useful snippet!
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • wbauk2002
    wbauk2002 Registered Posts: 110 ? ? ?
    Vat isnt recoverable on car or van purchases
  • andrewtdk
    andrewtdk Registered Posts: 150 ? ? ?
    wbauk2002 wrote: »
    Vat isnt recoverable on car or van purchases

    Vat is generally recoverable on commercial vehicles such as vans.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    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!
  • JodieR
    JodieR Registered Posts: 1,002
    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.
  • anniem
    anniem Registered Posts: 1,326
    JodieR wrote: »
    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, Wiltshire
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