Part worn tyres VAT

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Raas
Raas Registered Posts: 4 New contributor 🐸
edited June 18 in AAT member community
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

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  • anony123
    anony123 Registered Posts: 556 Epic contributor 🐘
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    I think it depends on the country and what the VAT rate is there I think
  • Raas
    Raas Registered Posts: 4 New contributor 🐸
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    i have called the HMRC VAT department. They says, for part worn tyres VAT will be Zero rated on sales.
  • anony123
    anony123 Registered Posts: 556 Epic contributor 🐘
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    I wonder why they are zero rates. Oh well.
  • anony123
    anony123 Registered Posts: 556 Epic contributor 🐘
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    Maybe because they are part used. So gross will be the same as the net value as 0 vat
  • douglasstroud
    douglasstroud Registered Posts: 310 Dedicated contributor 🦉
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    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
    anony123 Registered Posts: 556 Epic contributor 🐘
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    Not sure HMRC know what is best.
  • douglasstroud
    douglasstroud Registered Posts: 310 Dedicated contributor 🦉
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    Never ever phone HMRC for advice!

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