Question on VAT help needed.

greenface

Hello to you all quick question on a subject we all love to hate V.A.T.

We are currently buying a static caravan in a private sale.
Where i say private i mean. The sellers(owner of the caravan) advertised in a local paper we phoned ,met, looked, haggled, agreed and then informed the site that we had done so.
The site owner has agreed to the sale taking place, no problems,he also says that he is entitled to 15%commision on the sale he has to transfer all documents over to my name.Again no problem although 15%adds up to nearly £3000 they also said plus V.A.T.
Is this right
Is it a commision or
is this a transfer fee ?
Do you pay vat on a commision.?
Has anyone been in our position were they charged VAT?

Thanks in advance

Sugar_Coated_Owl

Is the seller VAT registered?

greenface

yes i expect so its a very big site and they sell alot of vans themselves. it just weather its a commision or a transfer fee issue i think because i thought commision didnt involve (plus Vat)

Lifeisbutadream

If someone is VAT registered then they will have to pay VAT on anything that they sell, or any profit that they make, I presume that includes commission. Make sure that you see their VAT registration number though and that you get a full breakdown of VAT on your receipt.

scheming_gypsy

i thought commision was taken out of the selling price not added to it. if they're selling it on somebody elses behalf then the commision should be added to the sellers price in advance or taken from the 'for sale' price.

Glad

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

greenface

Thanks for all your replys. I think firstly i will have to find out if they think it is commision (regardless of the fee it is still 15%- to me that shouts commision)or if it interpreted as a change of name fee (why isnt it a set price?)

I work in construction and occasionally i bring in work to the firm i am employed by and they pay me commision. The people who pay for the job are not charged extra then VAT added on top of that price. It comes from the profit they are making.
Many thanks and anymore input will be great