V.a.t. on older trucks why?
Discussion
Sorry for being a bit stupid. But i have spent the last few weeks looking for an early Gen 3 Ram 4x4 in black. I know its a bit specific but thats what i want. Everyone i have come across has v.a.t attached to it. Why is there v.a.t still attached to vehicles this age??. Awaits to be educated.
A lot of trucks were bought by people as a company car as the personal tax rates were much lower for a commercial vehicle over something like a Range Rover.
These businesses would have claimed the VAT back on the initial purchase so VAT has never been charged on particular truck.
When they come to sell it, the VAT has to be added.
As far as the price goes though, it needs to reflect the current market rate for that vehicle. If that year and spec truck is worth 10k in total, then they won't get a buyer if its 10k plus VAT.
You need to ask them to reduce the asking price to 8.5k so when the VAT is added, the total is 10k.
These businesses would have claimed the VAT back on the initial purchase so VAT has never been charged on particular truck.
When they come to sell it, the VAT has to be added.
As far as the price goes though, it needs to reflect the current market rate for that vehicle. If that year and spec truck is worth 10k in total, then they won't get a buyer if its 10k plus VAT.
You need to ask them to reduce the asking price to 8.5k so when the VAT is added, the total is 10k.
Edited by HD Adam on Sunday 10th May 10:44
HD Adam said:
A lot of trucks were bought by people as a company car as the personal tax rates were much lower for a commercial vehicle over something like a Range Rover.
These businesses would have claimed the VAT back on the initial purchase so VAT has never been charged on particular truck.
When they come to sell it, the VAT has to be added.
As far as the price goes though, it needs to reflect the current market rate for that vehicle. If that year and spec truck is worth 10k in total, then they won't get a buyer if its 10k plus VAT.
You need to ask them to reduce the asking price to 8.5k so when the VAT is added, the total is 10k.
I had seen a couple with v.a.t. added to the price,which takes them above their value. No one was willing to accomodate on price. I thought that with the way the market is at the moment.(And especially large V8 engined trucks)That a few would be a bit willing to fluctuate on price. These businesses would have claimed the VAT back on the initial purchase so VAT has never been charged on particular truck.
When they come to sell it, the VAT has to be added.
As far as the price goes though, it needs to reflect the current market rate for that vehicle. If that year and spec truck is worth 10k in total, then they won't get a buyer if its 10k plus VAT.
You need to ask them to reduce the asking price to 8.5k so when the VAT is added, the total is 10k.
Edited by HD Adam on Sunday 10th May 10:44
Please don't get caught out. You do have to be careful with trying to re-claim the VAT and ask the seller to show you the SVTech certificate and sticker; without these the Revenue will disallow your claim for the VAT and the seller is NOT entitled to sell the truck plus VAT. There is one Revenue Official monitoring these claims through one Revenue office wherever you are in the UK.
Edited by americancar on Monday 11th May 16:15
americancar said:
Please don't get caught out. You do have to be careful with trying to re-claim the VAT and ask the seller to show you the SVTech certificate and sticker; without these the Revenue will disallow your claim for the VAT and the seller is NOT entitled to sell the truck plus VAT. There is one Revenue Official monitoring these claims through one Revenue office wherever you are in the UK.
The SVTech certificate is the payload upgrade to get round the company car tax liability and is nothing to do with whether the truck is VAT qualifying or not.Edited by americancar on Monday 11th May 16:15
If the truck is a single cab it can automatically be priced plus VAT; if it is a double cab truck then it must have a 1-tonne payload to be priced plus VAT; HMRC regulations, the only American trucks that have the 1-tonne payload and are legally VAT reclaimable are those that have been uprated with the SvTech certification.
americancar said:
If the truck is a single cab it can automatically be priced plus VAT; if it is a double cab truck then it must have a 1-tonne payload to be priced plus VAT; HMRC regulations, the only American trucks that have the 1-tonne payload and are legally VAT reclaimable are those that have been uprated with the SvTech certification.
Sorry, getting my wires corssed here.Correct if a double cab it needs the SVTech but that doesn't necessarily mean it's VAT qualifying. Although as to why someone would do this without being VAT registered is beyond me.
Can't remember now but don't the 2500 and 3500 Rams become VAT qualifying due to chassis weight without the need for SVTech?
EDIT: Surely it would still need to be sold plus VAT if it was reclaimed on purchase and used solely as a company vehicle the same as daily rental cars, demonstrators and company cars?
Edited by Roo on Monday 11th May 17:51
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