VAT relief on adapted used car purchase

neilmcl

missile wrote: »

What price is this vehicle?
His profit margin is likely to be small and the VAT portion he MIGHT be able to discount will only be a portion of this. Is it worth the hassle?

The amount isn't really the question, this is MSE after all and I'd rather any amount rightfully go toward where it's supposed to, ie, my dad, rather than HMRC.

unholyangel

neilmcl wrote: »

The amount isn't really the question, this is MSE after all and I'd rather any amount rightfully go toward where it's supposed to, ie, my dad, rather than HMRC.

I think they might mean that the seller possibly intended to sell it under the margin scheme - so would only have been charging vat on the margin where presumably, you'd be expecting the be advertised price/1.2.

timwalker

I have worked in the WAV industry for a good few years so can probably help here!

If the vehicle was originally purchased for the sole individual use of a disabled person then it will not have had vat applied from new, so it never will attract vat. The used dealer will not have paid any vat when he bought it, neither will you.

He will pay vat on his margin, but that's nothing to do with you.

The only scenario where it could have vat is if it was originally a wav taxi, or used by another organisation as part of their business, patient transport for example.

Hope this helps.

neilmcl

timwalker wrote: »

I have worked in the WAV industry for a good few years so can probably help here!

If the vehicle was originally purchased for the sole individual use of a disabled person then it will not have had vat applied from new, so it never will attract vat. The used dealer will not have paid any vat when he bought it, neither will you.

He will pay vat on his margin, but that's nothing to do with you.

The only scenario where it could have vat is if it was originally a wav taxi, or used by another organisation as part of their business, patient transport for example.

Hope this helps.

Thanks, that's made things clearer.