Yet another VAT question

Artefx

I'm guessing this question has been answered a hundred times but I couldn't find a divinitive answer.

If I buy a van for private use can I add the price I pay in vat to the future selling price?

Eg 10000 + 2000vat = 12000

Selling price 12000 non VATable

Hope this makes sense

Cheers

DoaM

No, as you'll have already paid VAT on purchase. (Even businesses purchasers pay VAT - they're just able to claim it back)

Car_54

Artefx wrote: »

I'm guessing this question has been answered a hundred times but I couldn't find a divinitive answer.

If I buy a van for private use can I add the price I pay in vat to the future selling price?

Eg 10000 + 2000vat = 12000

Selling price 12000 non VATable

Hope this makes sense

Cheers

The selling price is exactly what you want it to be. If you think someone will pay £12,000, then why not?

AdrianC

It's just a totally standard VAT question, nothing to do with vans.

If a VAT-reg business buys something, they reclaim the VAT on the purchase. When they sell, they charge VAT. If you're buying for personal use, you can't, so you don't.

So a van that's £10k + VAT = £12k to you. When you sell, you cannot charge VAT - so if you sell for £6k, it's going to cost a VAT-reg buyer the same as a van that's £6k+VAT, so would cost a private buyer £7,200...

The same applies to all motor vehicles, not just vans - but used vans are often bought by VAT reg businesses, while used cars rarely are. Once the VAT reclaim-and-charge chain is broken for any particular vehicle, it can never be reinstated.