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Vat on commercial

  • 23-08-2020 7:58am
    #1
    Galwaygirl1982
    Registered Users, Registered Users 2 Posts: 16 ✭


    My dad recently retired and is thinking of setting up a small business that requires him to have a commercial vehicle . He has found a commercial vehicle in a garage . As he is not vat registered /does not have a company yet Claiming vat back is not applicable . He may set up a vat registered company but highly likely in this fiscal year As he has been advised to be a sole trader. He will also be insured on my mum’s car so that will be his private car . The vehicle has 5 seats but he won’t be using it for private use

    The garage recommended he get finance on the vehicle In his personal name . The vehicle costs around 38k plus vat . They said the vat travels with the finance company so if you sell it on again/trade it in the future the vat will carry on . Can somebody explain what this means ?


Comments

  • #2
    vandriver
    Registered Users, Registered Users 2 Posts: 3,472 ✭✭✭vandriver


    Will he be supplying services to other businesses or to consumers?
    If it's b2b,then register for VAT straight away.
    (Being nosy,does he really need to spend the guts of 45k just starting out?)


  • #3
    Homer
    Registered Users, Registered Users 2 Posts: 4,372 ✭✭✭Homer


    Also be aware that if there is five seats and the vehicle is purchased through the company it will have implications on BIK and will attract the significantly higher rate than a van would.


  • #4
    Galwaygirl1982
    Registered Users, Registered Users 2 Posts: 16 ✭Galwaygirl1982


    He always buys everything newish So he can sell on ‘ the day you buy is the day you sell’ . It’s a bit daft ! Anyhow he is going to be selling eggs and veg and will potentially be buying a digger and hiring that out to a friend


  • #5
    vandriver
    Registered Users, Registered Users 2 Posts: 3,472 ✭✭✭vandriver


    I'm straying far from taxation advice,but over 40 grand to sell a bit of fruit and veg.Are the 4 extra seats for the spuds?
    A decent sub 20k van would surely do.


  • #6
    BorneTobyWilde
    Registered Users, Registered Users 2 Posts: 36,908 ✭✭✭✭BorneTobyWilde


    Never knew you could even get a van worth 45k, its not even new? What is it a Ferrari Cargo GT


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  • #7
    BorneTobyWilde
    Registered Users, Registered Users 2 Posts: 36,908 ✭✭✭✭BorneTobyWilde


    3 seater lwb fridge van for food stuffs would be way to go.


  • #8
    Galwaygirl1982
    Registered Users, Registered Users 2 Posts: 16 ✭Galwaygirl1982


    I know it’s crazy but that the vehicle he wants . He is retired and it’s more of a hobby I think . Any advise on the vat


  • #9
    BorneTobyWilde
    Registered Users, Registered Users 2 Posts: 36,908 ✭✭✭✭BorneTobyWilde


    Galwaygirl1982 wrote: »
    I know it’s crazy but that the vehicle he wants . He is retired and it’s more of a hobby I think . Any advise on the vat


    Not sure, what is make and model of this van


  • #10
    Galwaygirl1982
    Registered Users, Registered Users 2 Posts: 16 ✭Galwaygirl1982


    It’s not a van it’s a commercial pick up vehicle . Will get info off him


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