VAT on Sale of Van

pgrim

Registered User
Messages
19
Hi
I have a commercial van for sale, lets say for 10,000. When i bought the van i was self employed but never claimed any VAT as after only one month i got a full time job PAYE. Now 2 years later i want to sell the van and im being asked by prospective buyers for a VAT receipt. My asking price is the total amount of cash that i want to receive, ie 10,000 Would the buyer pay me the full price and then just try to claim back the VAT from revenue, or to sell at a competetive price am i going to have to sell it for 10,000-21% ie 7,900.
I hope ive explained my problem clear enough for someone to give advice
Cheers
 
Yes, Thats a problem alright

If you sell the van to a motor dealer they can claim the vat back on a residual vat basis. This means that if you sell a van to a motor dealer for 10000 without a vat invoice,they can immediately claim back 1735 vat on their next return

You can also try to find a buyer who is not registered for VAT. It will make no difference to this buyer if there is a vat invoice or not.

The third category of buyer is the one you describe where you try to sell the van privately to a vat registered business. If you cannot supply a vat invoice you will need to lower the price to clinch a sale.

If I were you I would advertise the price a bit lower (say 8%) than other vans for sale.This should be enough to try and attract the type of buyer you need.
 
i want to sell my van privately,do i have to charge vat on the sale and then pay the collector g the vat,(am vat registered)or can i sell it for a cash price ex vat?