VAT on second hand parts?

[vanordinaire]

My understanding is that once VAT has been paid once on anything (eg a new car) that's it, the government has had it's pound of flesh and it doesn't get any more on subsequent sales of that object. Can anyone explain why then do breakers charge VAT on second-hand parts from cars which have already had the VAT paid on them?

[Matt UK]

I think it's because HMRC is a bit of a monopoly and has decided that it will be so...

[spikeyhead]

If they are selling more than the VAT limit then they have to register for and charge VAT on the sale.

more details here, and no, used car parts aren't eligible for the margin scheme.

http://www.hmrc.gov.uk/vat/start/schemes/margin.ht...