VAT on registration plates

[V8LM]

Many of the registration numbers offered for sale appear on more than one trader's web site and often is "open to an offer". The registration, therefore, is presumably being offered on behalf of a third party.

Every registration I have enquired about has been subject to full VAT. How come? Surely not everyone selling their entitlement is VAT registered, and the trader, if selling on behalf of someone else, should only charge VAT on the difference between the cost and sale price.

Also, whilst I'm here, one particular dealer will not put valuable (> £5000) plates on retention and only transfer to a vehicle. They say for protection reasons, but surely a certificate of entitlement with one's name on is more safe than sending them the V5 and having a plate put on as a nominee only?

[Boba Fret]

most of these registration plate sites are merely money laundering operations.

Mainly for South American cartels, Russian, Japanese and Chinese mafia.