Hi Stu,

I bought my 2014 DSG shuttle from Slough van & truck centre and it was Vat Free because I was told it belonged to a private hospital for taking patients to and from? I didn't complain or look into it because it saved me a fortune A:A:A:A:??

I have noticed on their website they have a few Vat free Vans, maybe worth a look and a chat with them if you get chance??

Best of luck finding the right one, well worth all the hunting
Cheers
Jon G

 

When I bought my 3 year old van from a refrigeration company as a private buyer, I had to pay VAT. ( ouch) If I sell it on to a private buyer, then no VAT to pay. No way round it I'm afraid unless you buy private.

J

 

I'm sure I will be corrected if that is not the case............

 

If they are advertised +VAT it means that they were previously owned by a business or someone who was VAT registered and able to reclaim it. They paid the VAT when they bought it and reclaimed it on their VAT return but now they have to charge you VAT when they sell it on. In which case you will have to pay VAT.

If they are advertised VAT free or VAT included then they were previously owned by someone / a business that was not VAT registered. They have paid the VAT but were not able to reclaim it.

When a VAT registered person or business sells you goods and charges VAT then they must supply you with an invoice that shows the amount of VAT that you have been charged (either added on or included). The invoice must also show their VAT registration number. Take a look at some of the receipts you have for other stuff.

A retail business (selling to consumers) must show you the price you are going to pay so if they are VAT registered it must be inc VAT which is why you don't always recognise that you are paying VAT. A business that is VAT registered and that sells predominantly to to business is allowed to show their prices ex VAT but they must indicate that VAT will be added. A business that is not VAT registered will not have been able to have reclaimed the VAT when they bought it so the price they show you will be the price you pay.

It is quite fair for a VAT registered business selling a van to show you the price ex VAT and tell you that VAT will be added. It is after all a van - a commercial vehicle.

 

Anyone who thinks buying from a trader ever means they don't pay VAT is deluded, if it's not shown separately it's already included in the price because the previous owner wasn't VAT registered, the trader still has to pay it when you buy it.

 

That's not completely correct.
If the trader buys in a van which is for whatever reason not incurring VAT, they are not then able to add vat to the sale of the goods and that is why some show up with no vat.

 

End of the day, it really matters not to you. You pay the total price, and whether it includes VAT is not relevant as a private buyer.
In your search for a van, you should focus on what you are getting for your money and not get distracted by some frankly pointless detail.
When you buy a car from a Dealer, you will pay VAT on that car as well. This only reason the price is not shown as "+VAT" is there is no point as the end buyer - private or business - will never be able to reclaim it.


In a (VAT Registered) business, VAT gets reclaimed by them when a product is bought that has VAT charged on it, and then VAT is charged again when a product is sold (ANY product. Does not have to have had VAT charged on it)
The buck only stops with the private (or NON-VAT business) buys. They pay the VAT and have to suck it up


(I know that is a simplification, especially with vehicles, but the principle is the same )

 

If the OP is worried that the vendor is actually VAT registered then they can check here;

http://ec.europa.eu/taxation_customs/vies/

If someone charging VAT can't give you a valid VAT reg number then they are bad boys.

 

Ah well, it still narked me off.

 

Thank you for your replies.

I had an understanding of how this works, but wanted to check how I could be assured that a dealer wasn't advertising a private van '+ VAT' (which the previous non-VAT registered owner would have paid already) to increase their profit. Is there a way to check this, or do I take their word for it?

Thanks again,

Stu

 

Whichever way you look at it they are selling the van just like anybody sells a product for what the market will pay.

 

Thank you very much

Stu

 

Hello,

I've tried google, as well as searching on here for an answer, but couldnt find it.

I'm planning to buy a VW T5 or T6 shuttle/van next year for my family to use (eg., I'm not a business), and I've been checking the autotrader website to get an idea of what's available. I've noticed that they are all priced with '+ VAT' as they are commerical vehicles.

How do I know if VAT has already been paid or not?

Is there a way to check this through a dealer? Should there be documentation to prove that VAT has been reclaimed? If it has, then I know I would have to pay VAT, but with this information I would have more confidence when I'm looking around and deciding where to buy. Also I want to make sure I don't get conned!

Thanks
Stu

Thank you for your replies.

I had an understanding of how this works, but wanted to check how I could be assured that a dealer wasn't advertising a private van '+ VAT' (which the previous non-VAT registered owner would have paid already) to increase their profit. Is there a way to check this, or do I take their word for it?

Thanks again,

Stu

Just wondered if you ever got a definative answer to your question, ie if there was a way of checking if the VAT had been paid on a van or not. Lots of answers here explaining the principles without seeing the obvious loophole of trying to claim twice and pocket same!

Many thanks,

Stuart.

 

Its always been paid. Either it'll be on the receipt or it isn't, my van came with a receipt but as it was a private vehicle in its past life the VAT was 0 on the van (although it shows VAT of £90 against a towbar and other bits which were added by the VW dealer when I bought it).

As a private individual you pay what the seller asks. If thats too much then dont buy it. Marking up the price by 20% would pretty much kill all their business though? It would probably be classed as fraud too?

Whats your thinking here? Have you bought an unreceipted van and decided to open your own business? It would have to be a biggish business to breach VAT threshold? I think you'd have to forget about the VAT and just offset running costs on your tax bill?

 

Think of it this way : VAT is not attached to the item you're selling, it's a transaction tax. Chargeable IF the item being sold is VAT-able AND the seller is required to charge VAT.

 

I was worried that the DVLA had a VAT detector van and were going to knock on my door and give me a hefty finger wagging