i'm confused

simonfarrow75

Hmmm, I believe but however maybe proven wrong that 2nd hand goods cannot have VAT imposed upon them.

Just a niggle really, but my Shimano Navi self destructed in December and was duly sent back to Shimano's registered service centre in Swansea. After a few 'interesting' emails/phone calls between myself and the chaps dealing with the reel they quoted me £30.00 to repair the reel and informed me they would have to use a second hand rotor arm from another Navi to replace mine
To cut to the chase when I recieved the reel back I noticed the breakdown of the costs and saw they had charged 20% vat on 2 second hand replacement components ( and the components do indeed look second hand ).

could someone please explain to me how can they charge vat on 2nd hand components, as wouldnt they have had vat paid on them when new?

cheers Simon

noh

Makes no difference if the goods are new or second hand.
If those goods are sold by a VAT registered business and they are not exempted or zero rated then VAT is chargeable.

DevilsAdvocate1

But you don't pay VAT on a second hand car, do you? I'm confused too.

noh

DevilsAdvocate1 wrote: »

But you don't pay VAT on a second hand car, do you? I'm confused too.

When you buy a second hand car from a VAT registered trader VAT is paid.

They are likely to be using the VAT margin scheme. VAT is paid on the difference between their purchase price and the selling price.

http://www.hmrc.gov.uk/vat/start/schemes/margin.htm

adi2402

Yes VAT is chargeable. No issues with this.