Do I pay VAT if I buy a pick-up from an auction

davey_browning

I'm thinking about getting a pick-up from an auction. It would be one of those ones that has a double cab so you can fit in 5 people but there is still space at the back to put tools and the like.

My question is do I need to pay VAT on this purchase? I see from some of the auction websites (BCA etc.) that on commercial vehicles you sometimes need to pay vat, even if it's second hand. Can someone tell me if I am likely to pay VAT on this type of vehicle? Why do you have to sometimes pay VAT and othertimes not? I think these types of vehicles are classed as light commercial vehicles.

Cheers

Dave

Gold_Shogun

It all depends on the VAT Registered Status of the Seller ...

IF it's sold by a VAT Registered company, then they will have reclaimed the VAT when they purchased it, so VAT is payable upon resale.
IF VAT is charged, then you must ensure you obtain a proper VAT receipt & details from the seller.

However, IF the seller is NOT VAT registered or did not reclaim the VAT, then VAT was already paid upon original purchase and is therefore NOT payable upon resale.

The auctioneer MUST announce at time of sale IF VAT will be added (but most auction vehicle-detail sheets show this as well).