When does the vat stop getting charged?

[MMM1978]

Hi all,

Quick question regarding the dreaded vat!

When does it stop being charged?

If I bought a van from a trader and had to pay vat would I have to charge vat when I sell? I'm pretty positive the answer to this is no, but just throwing it out there. :-)

If my dad bought a van for his business and claimed the vat back, when he sells would he charge vat?

If a trader buys a van off eBay, and didn't have to pay vat, as it was a private sale in effect, then puts it on his four court, does he have to charge vat when he sells, seen as at some point in the chain the vat man has had his money?

Cheers :-)

[danski]

My understanding is, if its from a trader/business and they pay VAT, they have to charge the VAT to pass it on to the tax orifice.
If its a private sale, no VAT gets charged or paid.

I seem to remember that they have a number of vehicles that you are allowed to buy and sell a year before you get classed as a trader, I think I was told 5, but dont quote me on that as I was told quite a few years ago.

[Bigharty]

Any business that is vat registered has to charge vat.

[MMM1978]

Ahh ok so the vat man keeps getting vat over and over again on the one van if it stays within a string of vat registered sellers?

Why is it some traders have a mix of vans in their forecourts, some which say no vat? How can one seller charge vat on some sales and not on others?

[Doc]

If a van has been purchased privately at some point, the private buyer will not have reclaimed the VAT, therefore the VAT is paid on that one.
Others are shown with a price +VAT as the previous owner has reclaimed the VAT on his purchase price.

[MMM1978]

Ok, so if a van was purchased from a private seller by a trader, but that trader is now got it up for a price plus vat, that is wrong? He's on the fiddle?

[Bigvw]

Yes he is! You will see some vans for sale by traders without VAT this is because there was none when he bought it in. If you bought it from him he would have to give an invoice with the vat showing and he would be committing fraud! You could simply get in touch with C&E to discuss after he had done so, sure they would be very interested. Have to be VAT registered after your turnover is at a certain level -
http://taxaid.org.uk/info/vat/who-needs ... er-for-vat

cheers

[Doc]

If (and he should) he gives you a receipt showing VAT then you can reclaim it against your company VAT bill.
The all in price can still have VAT reclaimed so long as there is a receipt of the transaction.
As stated above, all VAT registered traders must charge and return VAT. It's not for them, it's the governments little cut for letting them sell and you buy in the country.

[alarmfitter]

When we die