Used cars, VAT?

[911fan]

If buying a used card from a dealer, does the forecourt pice that one pays include VAT? eg 997 turbo 54 plate from OPC at £59,995?

Im trying to compare buying privately with buying from a dealer.

thx.

[silver993tt]

I believe VAT is only payed on NEW goods. Its a one off tax when you buy the car new. Dealer (and you) pay no VAT on a S/H car.

[johnfm]

I expect there is VAT, depending on the sales volume of the dealer. If turnover is at a certain level, he would have to register for VAT I think?

[johnnywishbone]

there is no vat on S/H cars !
the dealer has to pay vat on the differnce between the purchace price and the sales price IE £20,000 pp £23,000 SP there would be £446.80p vat to pay to the robin bastards !!!!


JWB

[supercarsimon]

If the car is a demo or been owned previoulsy by a lease or c/hire company it will be VAT qualifying therefore the dealer will need to invoice it out with vat shown on the invoice. As a private individual this no no effect on the price you pay.

[henry-f]

And you will not be able to reclaim the vat on a "Vat qualifying" vehicle if you are Vat registered unless you are going to use the car as part of your business, and that doesn`t include company cars. It would have to be a hire car or taxi.

The Vat on used cars is indeed very strange, as JW says we pay vat on the difference between our purchase and sale price but there is no way of charging it out to Vat registered companies.

I`m not even sure if "demonstrators" are classed as Vat qualifying, certainly cars driven by employees and used as demonstrators will not be. The car would have to remain at the dealership overnight and not be used for any personal journeys including getting to and from work.

Henry

[supercarsimon]

All main dealers will have an agreement that allows them to reclaim the VAT on any car registered to them from new irrespective of the use.