Cars advertised - Plus VAT.

[wildcat45]

I don't understand this. I get it with commercial vehicles, but can't see how private cars can be sold as such.

I am talking about second hand cars here.

Yesterday I saw an advert on Autotrader...A private ad for a Discovery whcih listed it at £x excluding VAT.

How can a private seller do this?

I am probably missing something.

[peterbredde]

The car was probably bought by the business and used for business purposes and hence vat deducted from purchase price. The car is probably being sold by the business (rather than an individual) and hence the business has to charge vat on its sales.

Make sure the total price you pay inc vat is clear.

[forzaminardi]

If it was a business car, VAT was not payable. If it is sold by that business and bought by another business, it remains VAT-free. If you do some scouting about on google for 'VAT exempt cars' you'll find quite a few, and some dealers who specialise in such motors.

[wildcat45]

So it isn't dodgy then. Thanks for the advice. Not thinking of buying the car, just wondered.

[TheD]

I agree with the OP here though. I have had a look at a few and they are private sales. I agree they might have originally been bought for a business, but the feeling I get is that they have either left or finished the business and are still trying to make an extra buck. On the other hand if I was buying it for my business I would be wanting an invoice with the VAT number on it.

[wildcat45]

Also, if it is sold by a business, then does it qualify as a sale from a business in terms of the SOGA? The same as if you bought from a dealer? Normally it is buyer beware when it comes to rights and private purchases.

[markmullen]

VAT Qualifying vehicles particularly appeal to international buyers who can claim the VAT back, if a private buyer has paid the VAT previously they can't claim it back.