paying VAT

  2020 13:16 18 Nov 2003
Locked

hello
i had been given to understand that VAT was only payable on new goods and therefore i should not have to pay it again on second user purchases, can someone please enlighten me.
with thanks

If a company is registered for VAT then by law they have to charge VAT at the appropriate rate,whatever they sell, even if it is secondhand.Special arrangements apply to some goods such as second hand cars; but as far as I am aware, if you buy a second hand computer from a registered company, they have to add VAT.

  Wilham 14:49 18 Nov 2003

In my experience vat is payable if it (i) has not been paid before, or (ii) has been paid and reclaimed, or (iii)there is exemption.
If I buy a PC from a dispersal sale I expect to pay vat because the previous owner likely offset original vat paid.
Auctions also have vat on the service provided, as part of the commission.
Books are usually exempt but may carry some vat for an enclosed cd, for instance.
Offshore firms like 7dayshop may have a limited vat exemption, subject to review.
Hope this helps.

  Wilham 14:54 18 Nov 2003

As said I assume the sale is via vat registered agent.

  Stuartli 15:08 18 Nov 2003

VAT is paid on used vehicles. If you are buying a secondhand van, for instance, the price is always £xxx plus VAT.

  wee eddie 16:11 18 Nov 2003

The VAT on traded second hand goods, is I believe calculated on the difference between the purchase and the sale price, not 17.5% of the sale price

  Stuartli 17:10 18 Nov 2003

That seems to ring a bell...:-)

I know I have receipts for past used car purchases and these include VAT.

In odd cases the sticker cost of the used car and the part exchange allowance have been changed somewhat from the verbal agreements - I presume this is to gain a little more VAT repayment when claimed back...:-)

  2020 17:37 19 Nov 2003

thanks for replys. it was when i was buying a second hand laptop that the guy in the edinburgh shop told me they could not add VAT.

  wee eddie 23:11 19 Nov 2003

1. Their turnover was below the lower limit - possible but unlikely!

2. They were handling the sale for a customer and not taking any commission - a doubtful legal proposition if ever there was one.

3. It might have been an under the counter deal!

  Falkyrn 23:52 19 Nov 2003

More information can be obtained from click here

another option to which this document refers is a dealer selling "margin" goods ...seems quite legitimate if you can get past the legal speak.

  wee eddie 00:05 20 Nov 2003

If the trader is operating this scheme, he is still obliged to present you with a VAT receipt if it is requested.

However the VAT will only be 17.5% of his margin, not the whole.

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