non VAT qualifying? What's it mean?

[mccrackenj]

As title says - what does this mean when mentioned in a advert for a car and, as a potential private buyer, what relevance has it to me?

Ta

PS - have tried to search but not working

[confused_buyer]

mccrackenj said:

As title says - what does this mean when mentioned in a advert for a car and, as a potential private buyer, what relevance has it to me?

Ta

PS - have tried to search but not working

It has no relevance whatsoever so ignore it.

[mccrackenj]

Well that was quick!

Thanks - I assumed that as a private buyer it would be irrelevant to me, but I'd still be interested in what it actually means and why the dealer would mention it in their ad.

[ralphrj]

mccrackenj said:

Well that was quick!

Thanks - I assumed that as a private buyer it would be irrelevant to me, but I'd still be interested in what it actually means and why the dealer would mention it in their ad.

It means that the VAT has been paid on the vehicle before (and not recovered). The dealer will pay VAT on the sale out of their margin. VAT will not be charged to the buyer and the buyer cannot recover the VAT.

A VAT qualifying vehicle is one where the VAT had been recovered previously (i.e. it had been owned by someone/business/organisation that was VAT registered and used for business purposes). VAT will be charged on the sale and could be recovered again.

For an ordinary consumer it is completely irrelevant other than it could possibly indicate that the car was previously a hire car.

For a VAT registered buyer it may impact how they record the purchase of the vehicle in their books.

[kentmotorcompany]

VAT qualifying:

If a car is bought new to be used wholly for business use the VAT can be claimed back. When this is car is then sold as used car it would be considered VAT qualifying.
This means unlike other used cars the VAT will be split out and shown on the invoice. If another business buys it wholly for business use they can also claim the VAT back(much less common with used cars). To a private buyer the value is the same, the overall price paid is the same, the VAT is not claimed back, and it is not VAT qualifying anymore.

Wholly for business use means things like Lease cars/Hire cars/Commercial vehicles. If you buy a new car to use as a taxi, but use it privately outside of work the VAT cannot be claimed back.


Non VAT qualifying:

If a dealer sells a used non VAT qualifying car he pays VAT on the overall margin. This is not shown on the buyers invoice.

Why a dealer would put "non VAT qualifying" in the ad is a mystery to me.

[markmullen]

kentmotorcompany said:

Why a dealer would put "non VAT qualifying" in the ad is a mystery to me.

If it is something likely to appeal to an export customer who would want to claim back the VAT.

[mccrackenj]

kentmotorcompany said:

Non VAT qualifying:

If a dealer sells a used non VAT qualifying car he pays VAT on the overall margin. This is not shown on the buyers invoice.

Why a dealer would put "non VAT qualifying" in the ad is a mystery to me.

This is the bit that confused me - why would they bother putting it on the advert? As Markmullen says below - maybe it would have some interest to export customers?

Anyway - thanks all.

[Liquid Knight]

"No VAT" or "VAT Free" is usually designed to make people think the vehicle is 20% cheaper as a result. It's a marketing ploy; nothing more.

[Kwai Chang Caine]

markmullen said:

kentmotorcompany said:

Why a dealer would put "non VAT qualifying" in the ad is a mystery to me.

If it is something likely to appeal to an export customer who would want to claim back the VAT.

Or if buying/leasing a used car through a company.