What does VAT qualifying mean?

[Ari]

Just noticed it on a car for sale. Does that mean I have to add 20% to the price?

[Jazzer]

If you're a private buyer, it means nothing.....the asking price is the asking price.

If you're buying it through your business, you'll be able to reclaim the VAT.

That's All Folks!

[cptsideways]

Yes that is the case, vat was reclaimed on the purchase originally.

[va1o]

Correct, simply means a business can claim the VAT back. It will be included in the sticker price.

[Ari]

Cool, many thanks chaps.

[geeteeaye]

Are there limitations as to what vehicle(s) can be bought for a business?

To expand - what's to stop someone (who is VAT registered) buying a car, claiming the VAT, keeping it for a shortish period and selling it on to someone else? Would they have to repay the VAT on the price they then sell it for or something?

[AndrewW-G]

geeteeaye said:

Are there limitations as to what vehicle(s) can be bought for a business?

To expand - what's to stop someone (who is VAT registered) buying a car, claiming the VAT, keeping it for a shortish period and selling it on to someone else? Would they have to repay the VAT on the price they then sell it for or something?

http://www.hmrc.gov.uk/vat/managing/reclaiming/mot...

[markmullen]

For a company to claim the VAT back they have to be VAT registered, thus when they sell it on they have to charge VAT on the sale. VAT Qualifiers are great for international customers who can get the car tax free when exporting the car.