"No VAT" vans

[MartinM]

Hi all

I'm looking for a small van, probably a Caddy but open to suggestions and sometimes see "no VAT" on ads for used vans. II'm self-employed but not VAT registered. I know VAT is added to the windscreen price on all new vans but can someone explain the criteria here?.Am I right in thinking that main dealers have to charge VAT on used vans?
Ideally I'm looking for something with low mileage that I can pay with finance.

Thanks in advance

[OscarIndia]

It all depends on whether the VAT has been reclaimed on the van at purchase.
If at any point one of the owners has no reclaimed the VAT then the van becomes non vatable.

[powerstroke]

MartinM said:

Hi all

I'm looking for a small van, probably a Caddy but open to suggestions and sometimes see "no VAT" on ads for used vans. II'm self-employed but not VAT registered. I know VAT is added to the windscreen price on all new vans but can someone explain the criteria here?.Am I right in thinking that main dealers have to charge VAT on used vans?
Ideally I'm looking for something with low mileage that I can pay with finance.

Thanks in advance

As the other poster said , someone non registered has paid the vat and hence can't charge VAT when they sold it on
the dealer then charges VAT on his margin like he would on a car sale ... so you will still pay some VAT but not 20% of the selling price ...

Edited by powerstroke on Thursday 30th August 17:22

[twing]

MartinM said:

Hi all

I'm looking for a small van, probably a Caddy but open to suggestions and sometimes see "no VAT" on ads for used vans. II'm self-employed but not VAT registered. I know VAT is added to the windscreen price on all new vans but can someone explain the criteria here?.Am I right in thinking that main dealers have to charge VAT on used vans?
Ideally I'm looking for something with low mileage that I can pay with finance.

Thanks in advance

Sold under the VAT Margin scheme for vans where previous owner hasn't claimed the VAT back. The dealer will pay the profit from his GROSS profit same as when selling a used car.

[Swole]

I am someone in a similar situation, well my OH is. She is registered as a sole trader, but we are confused if that covers us for business leases? She is not VAT registered due to turnover lower than current threshold, so, does that mean we have to go for a personal lease?

Regrettably the Citroen Berlingo we have has received its maximum number of band-aids so it has to go. We need something bigger also so we are looking at Transit Customs and alike.

Edited by Swole on Tuesday 2nd October 11:34

[Teddy Lop]

Vans are generally advertised on business terms ie sticker prices will be net, so all "no vat" really means is it won't be added, as the majority of secondhand vans are bought by non vat registered business though the van has a value and the driveaway prices won't differ much, its just a distiction in how its presented.

Worth noting if you're on a flat rate vat scheme though and buy a van outright, HP etc instead of lease/hire, you CAN claim full VAT relief.