Are Second hand or used goods subject to VAT

RayWolfe

JasonLVC wrote: »

Derrick is correct in saying VAT was introduced when we joined the Common Market - nothing to do with Thatcher!.

Who said it was?
I said it was increased from 8% to 17.5% under Thatcher!

oldwiring

Altarf What happens if a VAT registered business buys from the scap merchant or other similar purveyor of SH goods? Can the VAT effectivley held in the price paid be offset againstliabilities?

LittleVoice

JasonLVC wrote: »

. . . and zero rate (0%) for food, magazines and clothing .

It's only young children's clothing which is zero-rated. We adults (and the larger/older? children) are at standard 17.5%.

LittleVoice

oldwiring wrote: »

Altarf What happens if a VAT registered business buys from the scap merchant or other similar purveyor of SH goods? Can the VAT effectivley held in the price paid be offset againstliabilities?

It's just like buying any other goods, whether they are SH doesn't enter into the treatment as far as VAT is concerned.

On the other hand, if the scrap merchant isn't charging VAT, then the buyer hasn't paid VAT so it doesn't enter into the equation.

Bearo

I'm looking for second hand car parts and was rather taken aback by the VAT inplication. Part is £45 + £5 p&p + £10 VAT. Surely this can't be right as most car scrap yards won't be VAT registered?

le_loup

Why won't they?

d123

Bearo wrote: »

I'm looking for second hand car parts and was rather taken aback by the VAT inplication. Part is £45 + £5 p&p + £10 VAT. Surely this can't be right as most car scrap yards won't be VAT registered?

Why not ask for their vat registration number?

Or even just a vat invoice as it will show vat registration on it.

thenudeone

Printing a VAT registration number does not prove anything. Pretending to be VAT registered then just pocketing the VAT is a lucrative fraud opportunity, which could leave the legitimate customer out of pocket when HMRC finds out and disallows the Input Tax.
However, a lazy fraudster would just use a random number which would fail the algorithm check described here: http://www.2-small-business.com/number_registration_vat.shtml
If you are claiming Input VAT in any high-risk areas (self-billing, scrap metal, second hand goods, building work) it would be worth setting up a spreadsheet to check VAT numbers against the test and if so - Alarm bells should start ringing!

Wiccapedia

RayWolfe wrote: »

Do you realise you are getting sillier and sillier? VAT was introduced by a Tory government and not only retained but increased from 8% to 17.5% by Mrs Thatcher's government.
Let's try very hard to keep politics out of money saving.

It's the attempt to separate politics from real life that has allowed us to get into the mess we are in. Let's make sure we keep politics and money together in our minds because face it, money is what all politics is about at bottom.

Mikeyorks

Excellent ..... for your 1st post ...... dredging up one that's 4 years old, to respond to!