Part worn tyres VAT

Raas

HI, i have new client who imports part worn tyres from EU country and sells to local tyre shops. Business is registered for VAT. What will be the VAT Rate on Sales? Your help and advice will be much appreciated. Thank you

anony123

I think it depends on the country and what the VAT rate is there I think

Raas

i have called the HMRC VAT department. They says, for part worn tyres VAT will be Zero rated on sales.

anony123

I wonder why they are zero rates. Oh well.

anony123

Maybe because they are part used. So gross will be the same as the net value as 0 vat

douglasstroud

My opinion is that it is a standard rate sale so 20% VAT should be charged, as they are second hand you may be able to use the margin scheme or the global accounting scheme.

anony123

Not sure HMRC know what is best.

douglasstroud

Never ever phone HMRC for advice!