VAT on Refurbished?

  badgermansix 17:49 28 Aug 2007

I hope this is the correct Forum for this question, if not I am very sorry.

I have been looking on ebay for a used laptop, there is one that I may be interested in, but I noticed it is classed as refurbished, and that vat will be added to the final price.

I thought that "refurbished" implied that is was a used model, I also thought that a used model would be free of vat?.

Or is there a difference between refurbished and used?

  Belatucadrus 17:57 28 Aug 2007

"Refurbished" is a bit of a bucket term traders use, it can cover a multitude of product types from obsolete stock disposal to re-sale of items that have been returned under warranty. VAT applicability may depend on its precise condition, I'm not sure.

i dont think refurbished or not affects wether vat is charged,if the trader is vat registered and the items are not zero rated vat will be applied.
zero rated
click here

  wee eddie 18:54 28 Aug 2007

If you are then you can claim the VAT back. If not then whether they charge VAT or not is largely irrelevant.

If the goods are second hand and the Company dealing on them is VAT Registered, then the VAT is levied on the difference between the Buying price and the Selling price (see the regulations pertaining to Second Hand Car Dealers).

If you are bidding for an item it is always sensible to consider the total price, including Delivery and Insurance Charges, rather than your Offer Price because of these potential surcharges.

  spuds 19:44 28 Aug 2007

The trader is within their rights to charge vat if they are registered for vat, whether the item is new or 'refurbished'.

If you bid and win the item, make sure that you have the traders vat number, and the vat is shown on the bill/invoice 'before' you pay.If you do not receive an after-sales invoice, request one via eBay procedure. Remember that the vat will/ should cover the whole transaction including delivery charges.

I would also check, if the trader is requesting additional fees for using credit card or PayPal. Some traders are now doing this.

In an auction or sale like this add approx 18/20% on your auction bidding price, so as to cover yourself.

  spuds 19:54 28 Aug 2007

Forgot to mention that a 'refurbished unit' may contain a 'refurbished battery'. Make sure that you have a warranty for this, because a replacement battery can be rather expensive, especially if it fails after a short time, and the seller makes terms and conditions of sale clear at the beginning.

  badgermansix 22:34 28 Aug 2007

Well, I think that just about covers it, thanks for all the advice, especially about batteries:-)

  laurie53 07:32 29 Aug 2007

VAT is "Value Added" tax

If the trader has added value to the product, and essentially refurbishing does just that, then VAT is chargeable

  swapper 09:28 29 Aug 2007

thanks laurie53.

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