Kelsey Motoring Discussion Forum - What does VAT qualifying mean at auction?

The forum for car enthusiasts and the trade

SHOP

SUBSCRIPTIONS

GREAT-CARS

MOTORING BOOKS

25.05.13 at 16:40:23

	Welcome, Guest. Please Login
	If you feel that any post on this forum is inappropriate or offensive and requires immediate action please e-mail the moderators at webmaster@kelseypb.co.uk

Home

Help

Kelsey Motoring Discussion Forum › General › Buying and Selling › What does VAT qualifying mean at auction?

(Moderators: Administrator, Martyn_the_Editor)

‹ Previous Topic | Next Topic ›

Pages: 1

Send Topic | Print

What does VAT qualifying mean at auction? (Read 7318 times)

kman Part of the furniture Offline Posts: 2122 Gender:	What does VAT qualifying mean at auction? 12.01.10 at 21:52:35 does it mean you have to add vat on top of the wining bid?
Back to top	IP Logged

rhubarb Ex Member	Re: What does VAT qualifying mean at auction? Reply #1 - 12.01.10 at 22:08:59 yes, and it also means you can claim the vat back if you are a business(ie vat registered)
Back to top	IP Logged

Beetlefan the 1st Fossil Offline [IMG]http://img.phot obucket.com/albums/v 736/lytchf Posts: 22833 Ashford Middlesex Gender:	Re: What does VAT qualifying mean at auction? Reply #2 - 12.01.10 at 22:09:22 kman wrote on 12.01.10 at 21:52:35: does it mean you have to add vat on top of the wining bid? Yes,It means the Company claimed the VAT back when the car was new
Back to top	If it can't be fixed using a hammer.......It's an electrical problem! YIM \| AIM IP Logged

Nobster

Fossil

Offline

Posts: 21433
Somewhere
Gender: male

Re: What does VAT qualifying mean at auction?
Reply #3 - 12.01.10 at 22:50:35

A vehicle is purchased by a contract hire and leasing company or a daily rental company for the sole purpose of renting it out to a customer(s) the vehicle is classified as a VAT qualifying vehicle.

The purchaser of the vehicle claims the VAT back and when they sell it at the end of its life with them it's value is plus VAT.

IP Logged

kman

Part of the furniture

Offline

Posts: 2122
Gender: male

Re: What does VAT qualifying mean at auction?
Reply #4 - 19.01.10 at 21:39:26

from bca website; seems different from views above.

VAT Qualifying Although all used cars bear VAT it is not usually accounted for separately and VAT is not generally added to the hammer price. In some circumstances (qualifying cars) the VAT element may be broken out from the hammer price and shown separately. This is done to enable a VAT registered buyer, purchasing the vehicle for a qualifying purpose, to recover the VAT.
Commercial VAT This relates to used light and heavy commercial vehicles, plant and equipment. VAT at current rates is charged on top of the auction selling price in almost all cases. The auction rule is that all light and heavy commercial vehicles, plant and equipment are subject to VAT unless the auctioneer declares otherwise.
Margin VAT In all other cases (margin cars) the VAT is not shown separately and cannot be recovered. Cars that are not eligible for recovery of VAT even if purchased by a VAT registered person and bought on a tax invoice are called margin cars.

IP Logged

raxx Part of the furniture Offline Posts: 1167 Gender:	Re: What does VAT qualifying mean at auction? Reply #5 - 19.01.10 at 21:52:05 I always thought (or understood) and led to believe that if a car was vat qualifying then a person buying it at auction who is intending it for business use could claim back the vat but it wasn't added on top of the hammer price......
Back to top	Try a hammer and chisel IP Logged

Nobster

Fossil

Offline

Posts: 21433
Somewhere
Gender: male

Re: What does VAT qualifying mean at auction?
Reply #6 - 19.01.10 at 22:26:23

kman and raxx you are both right I might have mislead people with my previous answer. Embarrassed

I will try and explain it better this time.

We will start with a new car being purchased the key issue is whether this VAT can be recovered by the purchaser as there are strict rules that will block the VAT recovery.

The purchaser must be able to prove a car is not available for private use at any time even taking the vehicle home over night once would render it blocked by the HM Customs. Roll Eyes

If VAT has been fully recovered on a car that car will be VAT Qualifying.

If a qualifying car is sold VAT will be chargeable on its sale(and shown on the Auction receipt as such) and recoverable by the purchaser under the same rules as when it was new.

If there is any private use of the car no VAT at all can be recovered on the purchase of the car and it becomes what is known as “Non-Qualifying”.

Hope this makes things a bit clearer. Roll Eyes

IP Logged

kman Part of the furniture Offline Posts: 2122 Gender:	Re: What does VAT qualifying mean at auction? Reply #7 - 19.01.10 at 22:36:30 All I wanted to know is that if I buy a car at auction described as VAT qualifying, will I have to pay VAT on top of hammer price. I think the answer is no.
Back to top	IP Logged

Nobster Fossil Offline Posts: 21433 Somewhere Gender:	Re: What does VAT qualifying mean at auction? Reply #8 - 19.01.10 at 22:47:37 kman wrote on 19.01.10 at 22:36:30: All I wanted to know is that if I buy a car at auction described as VAT qualifying, will I have to pay VAT on top of hammer price. I think the answer is no. NNNNNNNNNNNN OOOOOOOOOOOO. http://www.youtube.com/watch?v=OUCWVTwf5_U
Back to top	IP Logged

Pages: 1

Send Topic | Print

‹ Previous Topic | Next Topic ›

« Home

‹ Board

Top of this page