Wanting to claim back VAT on vehicle purchase?

[mc_blue]

Hi all,

I've bought a vehicle from an online auction site with the intention of repairing it and using it as a recovery vehicle. As I did not have an account for this site one of my employees has bid on my behalf. I have asked the salvage company to provide an invoice in my limited company name but they have said no and they have to make the invoice out to my employee's address and in his name. Therefore, is it correct that I am unable to reclaim VAT on this purchase? It does appear unfair that I have to suffer VAT on this as it is going to be a recovery vehicle.

Anyone know if there is a way of claiming VAT back at all?

With kind regards

Amar

[Eric Mc]

I doubt it, the VAT regulations are quite specific that the name of the customer must be printed on the VAT invoice (for purchases over a certain size).

[anonymous-user]

recovery vehicle-commercial vehicle-VAT reclaimable surely??

[mc_blue]

Eric Mc said:

I doubt it, the VAT regulations are quite specific that the name of the customer must be printed on the VAT invoice (for purchases over a certain size).

Please Eric there must be a way!

[spikeyhead]

Surely the receipt should be made out to whoever is paying for it.

[Eric Mc]

spikeyhead said:

Surely the receipt should be made out to whoever is paying for it.

The VAT receipt was made out in the name of the person who actually purchased the item i.e. the non-VAT registered individual. Therefore the transaction was not between two VAT registered entities.

The fact that the non-registered individual was acting as a kind of go-between between the seller and the end purchaser means that the VAT chain has been broken. As the individual presumably used HIS money/financial arrangements to pay for it, he is the actual purchaser.

The only way around it is for the OP to go back to the auction companby and ask for the purchase invoice to be made out in the name of his business.

[mc_blue]

Eric, I would be paying for the vehicle not my employee who is registered with the salvage company.

[Eric Mc]

Get the invoice addressed to your business. That will make the VAT reclaim OK.

[mc_blue]

That's the thing the salvage company is saying it can only be in the account holder's name, i.e. my employee who is not VAT registered. Seems like I'm going to have to swallow the VAT on this one.