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10-04-09, 01:56 PM | #1 |
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Buying a used vehicle - VAT question
If I were to buy a used vehicle that was subject to VAT - for which the vendor made clear, but said 'he wont charge me the VAT' , what is the liability here? Its clear I'm not a business, its an ebay purchase.
Is it with him, or is there potential for someone to come chasing me for money in the future? |
10-04-09, 01:58 PM | #2 |
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Re: Buying a used vehicle - VAT question
It is the vendor that applies the VAT - they can't chase you. If he genuinely isn't charging VAT then he is acting illegally, but he probably just going to wrap the VAT into the purchase price. (ie Price includes VAT, rather than Price + 15%)
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10-04-09, 01:58 PM | #3 |
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Re: Buying a used vehicle - VAT question
Charging the VAT is his responsibility, if he is vat registered and does not explicitly detail the VAT in his invoice etc. Then you should assume he as incorporated it into the final charge.
Nobody should come after you for a separate amount.
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10-04-09, 02:02 PM | #4 |
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Re: Buying a used vehicle - VAT question
OK, I'm just kinda worried he's possibly selling a vehicle that belongs to his business and not directly himself, and any concequences that may have for me
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10-04-09, 02:10 PM | #5 |
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Re: Buying a used vehicle - VAT question
Surely you just pay an agreed price, and it's his responsibility to pay the VAT owed to to the tax man?
ie: you pay 1150 pounds in total, it's up to him to give 150 to gordon and keep £1000 for himself
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10-04-09, 02:13 PM | #6 |
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Re: Buying a used vehicle - VAT question
I would hope this is the case, but the registered keeper is not necessarily the owner yada yada.
Dont want to buy a vehicle to find later someone (i.e. Gordon) has a charge on it I'm guessing he's going to declare he sold the vehicle for an amount far below what it really sold at maybe, and pay VAT on that? He wants cash so that might be it. Last edited by tigersaw; 10-04-09 at 02:15 PM. |
10-04-09, 02:13 PM | #7 |
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Re: Buying a used vehicle - VAT question
ie: you pay 1150 pounds in total, it's up to him to give 150 to gordon and keep £1000 for himself[/quote]
That's how it used to work. It feels like the other way round these days !
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10-04-09, 05:57 PM | #8 |
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Re: Buying a used vehicle - VAT question
If hes a business he has to give you an invoice with vat on it and his vat number on it.
If he's get the vehicle long enough for the depreciation to get to almost nothing he could pocket the cash. If not he could declare some of it and simply state he'd sold it to you for less money than he got. Thats all illegal and would upset the C&E. He could be wrapping the VAT up in the cash sum in which case he can give you an invoice showing this. The VAT won't come after you as he is responsible for charging the VAT properly. I guess he could say you had stolen the van and the log book and forged his signature when the VAT ask where his van went...... If he's planning subterfuge then he isn't giving you a receipt I dont think. Putting this in writing here is good enough reason to go find another van I would say; I mean there could be VAT inspector who owns an SV reading this right now........... |
10-04-09, 07:28 PM | #9 |
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Re: Buying a used vehicle - VAT question
Don't worry about it, he is responsable for the VAT not you. If you are not VAT registered the VAT trail ends with you as the new owner. If you then sell on again to a new Vat registered keeper then he can claim back a VAT element within the price but again not your concern. If you are worried about it do a HPi check on it for outstanding finance etc just to be sure.
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10-04-09, 10:59 PM | #10 |
Noisy Git
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Re: Buying a used vehicle - VAT question
To my mind "I'll knock the VAT off" simply means he's dropped the price a bit. What he does afterward is not your concern.
The usual caveats of buying a used veeehickle apply.
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