Is vat chargeable on secondhand car parts?

Spit62500

Hi,

Just wondering - I bought some new car parts from a classic car parts supplier in the Netherlands. Most parts were new, one was secondhand. I got a mail quoting two invoice numbers (the secondhand part was invoiced seperately from the new parts) with two amounts which I paid. I got a letter today with copies of the invoices looking for an additional amount - the vat on the secondhand part. They said at the time that they sourced their secondhand parts from a scrapyard in another (E.U.) country.

I don't mind paying it if its owed - just wondering if its owed....

Thanks

8~)

I don't have an answer, but if you find out do post it up. I'd be interested to know.

Dades

The fact the part was second-hand doesn't affect the fact the need for VAT. Similar to an old car brought in from outside of the EU, unless VAT has been paid on the item at some point in it's history (i.e. traded at some point within the EU) - it will be due once it is brought into the EU.

However unless I was made aware from the outset that I would be paying VAT on the secondhand item from Holland I would be irked. You've a right to assume that being second-hand it is VAT free, or that the vendor already paid the VAT and has factored that into the cost.

Spit62500

It looks like it is chargeable

http://www.theanswerbank.co.uk/Business-and-Finance/Question205926.html

These suppliers also charge vat on secondhand parts:

http://www.trgb.co.uk/bargains.htm

This assumes that vat is treated the same in the Netherlands....

My supplier confused me by quoting two invoice numbers and asking me to pay an amount that didn't include vat on the secondhand part and then later sent me the invoices showing the vat on both hence the shortfall. Maybe they got mixed up as well. I assumed that the secondhand part was invoiced seperately becasue of different vat treatment. Its annoying because the secondhand part was too expensive to start with but I bought it because I was stuck. I'd have stayed stuck if I knew it was to be 19% dearer!

galwaytt

The Atheist wrote:

The fact the part was second-hand doesn't affect the fact the need for VAT. This is not correct, imho....VAT is only chargeable once in the life of the product. As it was sourced in the EU already, it had it's VAT paid previously. They cannot charge VAT again.
However unless I was made aware from the outset that I would be paying VAT on the secondhand item from Holland I would be irked. You've a right to assume that being second-hand it is VAT free, or that the vendor already paid the VAT and has factored that into the cost.agreed

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