Vat

[alancdavis]

Are buyers required to pay VAT on second hand car parts ?

[roths]

Not an easy one to answer actually! Private v commercial sale.also, traders only have to register for vat if their turnover exceeds certain size-approx £70k

[alancdavis]

Granted you pay VAT on a new part but I dont think you need to pay VAT if it is resold as used ,,,,,, this would mean the goverment will get a cut every time an item is sold ???/

[0630154]

http://www.hmrc.gov.uk/vat/sectors/motors/index.htm

You can only use the margin scheme for a vehicle that has at some point actually been driven on the road for business or pleasure - HM Revenue & Customs (HMRC) doesn't consider a vehicle to be second-hand just because it's been registered, has delivery mileage and has been bought and re-sold.

[rallyman]

Most companys charge vat on second hand parts if there turnover is above vat limit which i think is £78k!

[paul mex]

Our Snap on man charges vat on any s/h stuff Always thought it was a bit odd when the original buyer will have already paid vat on it ,But To be fair he always knocks a chunk off to add it back on Just to help soften the blow that is

[rallyman]

Vat on used cars is the difference between what you bought it for and the sale price so cars are a good earner for the vat man!

[pushrod]

It is an individual who is VAT registered. As a trader when you turn over exceeds £77,000 you have to charge VAT on goods you sell, and VAT on your time. Basically you just add 20% on the bottom of the bill and then give it to the government.

If you are below 77,000 turnover you don't have to register and therefore you don't charge VAT on your job or sales.

For self employed people it's a very important threshold, as once your over, you pay 20% to the goverment on the entire 77,000 not just the bit you go over. This is regardless of wether you have actually charged VAT or not. It can really mess you up!

So if you only sell a couple of cars in the year you don't have to charge VAT.

[pushrod]

Or if you a farmer you get to claim it all back!
Whooo Hooo!

[dustydog]

Glorified tax collector