private sellers want VAT on van sale

earlsgate

hi
having filtered out trade sellers I am still seeing quite a few ads looking for VAT on their van sales Presumably the van never paid its tax, having been purchased for a business, so now that its passing into private hands this needs to be collected.

fair enough but how do I know this is actually the case and that any VAT paid would get to the taxman?
seems strange they are putting ads as private sellers and probably best avoided?

martin

neilmcl

earlsgate wrote: »

hi
having filtered out trade sellers I am still seeing quite a few ads looking for VAT on their van sales Presumably the van never paid its tax, having been purchased for a business, so now that its passing into private hands this needs to be collected.

fair enough but how do I know this is actually the case and that any VAT paid would get to the taxman?
seems strange they are putting ads as private sellers and probably best avoided?

martin

There's a difference between trade sellers (ie, car dealers) and private (VAT registered) tradesmen selling on their vehicles and listing VAT separately. I wouldn't class the latter trade sellers.

Tammykitty

The are "private" as in the are not car/van dealers, but they do have a VAT registered business

mattyprice4004

earlsgate, that's not how VAT works - even business sellers pay VAT on purchases, but claim it back in their return.
They'll be people like myself - have a VAT registered business doing something else, and moving the van on. I'm a sole trader so everything is in my name, but I'd still have to pay VAT on the sale when I sold the van (but I claimed it back when I bought it).

earlsgate

OK thanks , seems a bit clearer now

will just multiply price by 120% and if not a good deal will look elsewhere. Surely it would be easier just to show an inclusive price in the first place? perhaps just trying to make deal look more attractive as it appears earlier in ascending price search

motorguy

earlsgate wrote: »

OK thanks , seems a bit clearer now

will just multiply price by 120% and if not a good deal will look elsewhere. Surely it would be easier just to show an inclusive price in the first place? perhaps just trying to make deal look more attractive as it appears earlier in ascending price search

Because a significant amount of people looking a van would be VAT registered, therefore the flat price +VAT will be more relevant for them.

earlsgate

yes I see what you are saying but a significant number of both the Autotrader and Ebay commercial vehicles are targeted towards private buyers and if following guidance, VAT inclusive prices, and any other non optional charges need to prominently displayed.

neither complies fully with that guidance with the latter often producing misleading and time wasting search results

https://www.asa.org.uk/news/to-include-or-not-to-include-vat-in-stated-prices.html

System

Guidance is merely that, a guide.

Car_54

Tarambor wrote: »

Guidance is merely that, a guide.

But if a business doesn't follow ASA "guidance", it has the effective power to stop them advertising in most media.

AdrianC

earlsgate wrote: »

OK thanks , seems a bit clearer now

will just multiply price by 120% and if not a good deal will look elsewhere.

If you're not VAT reg, then absolutely.

Surely it would be easier just to show an inclusive price in the first place? perhaps just trying to make deal look more attractive as it appears earlier in ascending price search

motorguy wrote: »

Because a significant amount of people looking a van would be VAT registered, therefore the flat price +VAT will be more relevant for them.

Yup.


...and also because if there are two vans for £12k, one being sold as VAT qualifying (or "£10k+vat"), one not, then for any VAT-reg buyer, one will "actually" only cost them £10k, while the other will cost them £12k. Both will cost the non-VAT-reg buyer £12k.



Every new vehicle is sold +vat. It's just that consumer-focussed pricing has to include VAT.
If the buyer of that new vehicle is VAT registered, and buying for business use, then they can reclaim the VAT - and they then charge it when they sell it.
If the buyer is not, then when they sell it... no VAT element.
That's a lifetime thing - as soon as the "VAT qualifying" chain is broken, that vehicle is never VAT qualifying again. If a VAT-registered buyer buys it, there's no VAT to reclaim, and they can't charge it on sale.


It applies to cars the same as vans - some used car ads say "VAT qualifying".
https://www.classicandsportscar.com/classifieds/classic-cars/ferrari/599/ferrari-599-gtb-just-4000-miles-vat-qualifying/7468888

earlsgate wrote: »

yes I see what you are saying but a significant number of both the Autotrader and Ebay commercial vehicles are targeted towards private buyers

<raises eyebrows>
You reckon...?

I'd suggest the proportion of private buyers of VAT-qualifying commercials was very, very low.

unholyangel

If they are a business (whether limited company, partnership or sole trader) charging VAT then they cannot be a private individual. Only businesses are VAT registered. If they are disposing of old assets of the business then they are still acting for business purposes and would be defined by the consumer rights act 2015 and the consumer contracts (information cancellation & additional charges) regulations 2013 as a trader.

Furthermore, if they're selling to private individuals (even if their main demographic is businesses) then the price needs to be inclusive of all unavoidable taxes, charges and fees. Not to do so may amount to a breach of the price marking order 2004 and the consumer contracts (information, cancellation & additional charges) regulations 2013.