VAT on foreign used cars - how to treat

VAT on foreign used cars - how to treat

Author
Discussion

johnfm

Original Poster:

13,668 posts

250 months

Thursday 17th April 2014
quotequote all
Not sure why, but foreign car dealer in the EU applies VAT to the sale of a classic car.

Lets say I buy it and then sell it to a non-eu buyer.

I can reclaim the VAT I paid to the EU seller, yes?

But I don't have to charge nor account for VAT on the sale to the non-EU buyer do I?

Or am I mis-reading the guidance?

sgrimshaw

7,323 posts

250 months

Thursday 17th April 2014
quotequote all
There may well be special rules in place but ....

If you are UK VAT Registered, and the EU car dealer sells the car to you here in the UK surely he would not charge VAT ?


johnfm

Original Poster:

13,668 posts

250 months

Thursday 17th April 2014
quotequote all
I expect you are right - and why they display a net and with VAT price.


Eric Mc

122,029 posts

265 months

Thursday 17th April 2014
quotequote all
They might have to charge the VAT that applies for their country.

johnfm

Original Poster:

13,668 posts

250 months

Friday 18th April 2014
quotequote all
Cheers Eric.

I was just 'thinking aloud' re: buying a car in Italy (where they advertise a net and plus vat price) and could not recall whether I had to pay it and reclaim it here or merely pay the net price in Italy.