Contra non-VAT bill against VAT account

OllieMartin
OllieMartin Registered Posts: 1
I am looking to buy a car off one of our companies customers. This customer owes our company some £40,000 (including VAT). They have suggested a contra for the value of the car against their account and they I will pay our company back for the car.
In this way our company is able to recoup some of the debt and I am given a grace period to sell my current car.
However, how can we contra a bill with no VAT (the car) against invoices with VAT (what the customer owes us), without our company picking up the bill, me having to pay VAT on top of the car price or doing something illegal?

Any help is appreciated.
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