VAT chargeable on second-hand multi-fuel burner?

MarsdenCuckoo

Just had a refurbished multi-fuel burner installed by a local stove company.  We know they took it out and supplied a new one to another customer so effectively they obtained it free i.e. no VAT.  Appreciate they needed to buy parts (multi-fuel converter kit, fire bricks, etc.) to refurbish it so VAT will have been levied on the parts and they resprayed it so again there will be VAT on that labour charge but..... the invoice quotes: "To supply of refurbished Villager multi-fuel....... £700"  The installation charge takes the nett amount up to £2K and they've then applied 20% VAT (£400) on the total.  Is VAT chargeable on the £700? Anyone know?

dunstonh

You are buying it from a business. Not through the local paper.   The retail side has to have VAT added even though its second hand.

MarsdenCuckoo

Thanks for your reply.  Disappointing as it is..... A quick google says if no VAT incurred initially the company should not pass on a VAT charge.   Presumably then they should only pass on the VAT portion incurred on the parts they purchased to refurb the stove i.e. not on a 'ball park' figure for the refurbished stove as a finished article?

theoretica

VAT is payable on their markup.  If they, as you surmise, obtained it for free then 20% of £0 isn't much to ask to be knocked off the bill.