VAT purchase help

[dreamz]

I'm not VAT registered

but if i wanted to buy a vehicle for work purposes - could i get a VAT registered person to buy the vehicle for me and then claim back the vat?

what would be the implications of this?

[Eric Mc]

You could - but you would be comitting a VAT fraud.

The VAT registered person can only claim back VAT on a vehicle he intends to use in HIS VAT registered business. If he sell the vehicle on to you, he would have to charge you VAT on the selling price of the vehicle so you would gain no advantage over buying the vehicle directly from the original supplier.

Please note that VAT can usually only be reclaimed on commercial type vehicle and not on motor cars - except in very restricted circumstances.

[dreamz]

yeah it is a very commercial vehicle...

[Eric Mc]

Doesn't matter in this case.

Using someone else's VAT Registration to reclaim VAT on your behalf is a criminal offence - end of story.