paulhoubart

Does VAT apply to second-hand goods ?

I'm wondering about this, because I've just bought some P1 4 pot brakes from a garage, via ScoobyNet, and after a price/carriage was agreed, I discovered the price had had VAt added to it. As the calipers etc. were second-hand, is this correct ?

Made a difference to the price, I can tell you... !

Robertio

iTrader: (1)

As a business is selling them, VAT will have to be paid, a private sale i.e. one bbser to another would not. My understanding anyway.

Shark

A business selling goods that is VAT registered MUST add VAT. Dosent matter if the goods are secondhand.

A private sale and a low turn over business that is not registered would not have to ad VAT.

David

paulhoubart

Just a shame they're not obliged to tell you wether the price includes VAT or not !

Ah well....

Puff The Magic Wagon!

iTrader: (2)

Does this go for 2/hand cars too?

Or do you claim VAT back on the purchase (as a trade-in) & add VAT to your mark-up? Or just pay VAT on your mark-up?

Shark

Puff

The dealer pays VAT on it's proft on used cars. ie £1000 proft, £175 to the tax man.

So we reduce the proft by giving you more for your used car, and less discount in the new one. You pay the same at the end of the day.

David

John Catlin

You never win with the Tax Man or the VAT Man