VAT on Pickup?

saoirse88

Hi everyone,

My husband is looking at purchasing a L200 and has been shopping around the past couple of weeks. He's not VAT registered but we're a little confused as to vehicles priced at 30k for example. 99% are listed as plus VAT @ 23% but he's unsure as to whether he would owe that VAT if he was to register the vehicle and tax it privately immediately after purchase?

He's asked me to post on her as he searched and couldn't find the answer?
Any help is greatly appreciated

mulbot

https://www.boards.ie/discussion/2058422258/vat-on-pickup

I think from what way your asking is that,the price he will pay will be 30k plus the 23%on top. So e36,900 at purchase time.

Admldj

The garage will add the 23% onto the purchase price, if he was VAT registered he could claim this back, that's why it's presented that way.

User1998

He will pay the asking price + 23% VAT. If you can find one thats already been owned and purchased by someone who had to absorb the VAT themselves then you won’t have to pay VAT on top of the asking price. Usually these command a higher asking price tho.

saoirse88

Thank you, so theoretically if a vehicle is listed privately for 30k and seller hasn’t specified about VAT then my husband won’t owe anything to revenue?

Admldj

Correct, he has no mechanism to pay the VAT, if its a private sale, the seller will have already paid it and if it's a garage they will apply it to the purchase price for you and note that on the receipt.

mulbot

https://www.boards.ie/discussion/comment/123736964#Comment_123736964

If the seller is a VAT registered person are they not required to charge VAT(if they bought it and reclaimed VAT)?

E. G., a sole trader bought a commercial through business, keeps for 5 or 6 years, then decided to sell it privately.

User1998

https://www.boards.ie/discussion/comment/123736764#Comment_123736764

Its not your husband who owes anything, its the person selling it. A private seller could be a VAT registered sole trader. So just ask the seller about VAT if its not specified

https://www.boards.ie/discussion/comment/123736964#Comment_123736964

A private seller has to charge VAT if they are VAT registered

https://www.boards.ie/discussion/comment/123736987#Comment_123736987

Correct

Admldj

Apologies, I was referring to a non VAT registered seller, of course, if the seller is registered and has previously claimed the VAT back then they must now charge the new buyer VAT.

From experience, this distinction makes a decent bargaining chip when dealing with non VAT registered sellers of commercial vehicles as they are effectively charging 23% more than a VAT registered seller (can't claim it back if you were never charged) although OPs husband isn't VAT registered either so unable to capitalise on that avenue.

Dex Dexta

What’s the story with a VAT registered dealer selling a commercial that has previously been owned by a privateer?

User1998

https://www.boards.ie/discussion/comment/123737980#Comment_123737980

No VAT applicable, unless the private person was VAT registered