VAT on commercial vehicle sold by a garage

rolion

Hello,

Looking to purchase a commercial vehicle.

The garage that has the car said that the selling price is as listed and no VAT receipt will be given at selling time.
Is that normal procedure,i understood VAT has to be on every purchase of commercial vehicles.

Might be the seller was private and / or no VAT registered but the garage is registered !?
Or,the price has the VAT included and the garage keeps it "hidden" !?

Either way i am looking at my fellow boardies for advice.
Thanks

Drummerboy08

VAT doesn't HAVE to be on a used commercial, depends on how it was bought new.

rolion

Drummerboy08 wrote: »

VAT doesn't HAVE to be on a used commercial, depends on how it was bought new.

Thank.
Well,i paid VAT when i bought my car(because i've been asked to) and i have to sell it with VAT receipt. I "am" a business registered for VAT.

fred funk }{

Drummerboy08 wrote: »

VAT doesn't HAVE to be on a used commercial, depends on how it was bought new.

They must include VAT on any sale. The only way they might not is if they're selling it for someone else and it isn't going through their books.

FreshCoffee

I would imagine in this case the dealer is applying the revenue margin scheme for second hand goods.

www.revenue.ie/en/tax/vat/leaflets/margin-scheme-second-hand-goods.html


3. Margin Scheme Invoice

An invoice issued by an accountable dealer in respect of a supply under the margin scheme must not show VAT separately. Any such invoice should be clearly endorsed 'Margin Scheme - this invoice does not give the right to an input credit of VAT'.

hi5

It depends on whether the dealer got a VAT invoice and claimed VAT back on the initial purchase, if not then you wont get a VAT invoice either.
The dealer does have to pay VAT but only at the margin in other words on his profit and you will not get an invoice showing that either, so can't claim it back.

Edit: ^ as above.

SEPT 23 1989

Far better for your own income tax if you could buy it new over five years

rolion

Thanks to all.

The dealer pull off the sale due to some issues with my car ownership numbers and after saying to him that i need to speak with my accountant in relation to VAT.
I trink it has to do with the cash balance agreed a day earlier and after he did his maths (or the owner of the vehicle) he decided to cancel.
However,his car is still for sale !

Better for me as i wasnt sure how to deal with MY CAR VAT sold to his garage (he said is just a change of hands) but i had to sell my car with the VAT attached as a sale order !

Can't afford the cost of a new car,over €20-30k ! Can't justify it for my business model .

Thanks to all.

colm_mcm

If it's a car you're trading in,not he garage can't claim vat on it either way.
It would probably work out better for you to do two separate transactions on paper so you can claim on the price of the van rather than on the cost to change.