Van with no VAT paid

Kat1170

Was going to buy a small van up the North and pay VAT (buying for personal use) but a friend is now selling his Berlingo as it is too small for his needs. He is registered for VAT so didn't pay any when he got it last year. If I buy the van off him what happens re. VAT. Can he sell it now or is there a time limit he must wait.

Hope this is clear, Cheers Joe

L-M

He charges you the price including vat, and pays the vat back.

mickdw

Yes, whatever he charges you, he must pay the vat percentage of that back to the tax man otherwise he could make profit by just buying vans and selling them off to non vat registered people.
Some dont return this vat when selling to a private person as the vat receipt will not be going through any business account but it is a serious offence and would be spotted easily by revenue at an audit.
Others make out the receipt for a smaller amount thereby paying back less vat and take some cash. Again, Tax and Vat fraud.

Kat1170

Won't be paying him as much as he paid, more milage and 2 yrs older, so will I have to pay the total amount of VAT he paid or is there some way of calculating how much it might be. Cheers Joe

Mr. Presentable

You will pay whatever he asks. He will pay 21.5% VAT from what you pay. Ignore what it cost him originally. It works from current value. If you are registered for VAT you can reclaim 21.5%.