Selling the company car - VAT question

[samuel5]

Hi

Got a price of We Buy Any Car, I called them to ask if VAT could be added as we can provide a VAT invoice but they said the price quoted includes VAT.

I don't understand this, since we can provide them a VAT invoice, they can just claim the VAT back so it will not make any difference to them.
They cannot claim the VAT back if they purchased the car from me personally, so how can the price quoted include VAT?

Thanks

Sam

 

[Scalloway]

They may be using the second-hand margin scheme, where VAT is only charged by the dealer on the profit they make when they sell it.

 

[Ziggy2024]

Generally speaking there is no output VAT on a car sale by a private individual (which would include a company car) as input VAT is blocked therefore you would always expect the price included any relevant VAT.

Why do you think you should add VAT on? Did you claim the input VAT back?

 

[DWS]

They may be using the second-hand margin scheme, where VAT is only charged by the dealer on the profit they make when they sell it.

But they will not be able to use the margin scheme if they are charged VAT, which judging by the OP the seller must.

 

[DWS]

Generally speaking there is no output VAT on a car sale by a private individual (which would include a company car) as input VAT is blocked therefore you would always expect the price included any relevant VAT.

Why do you think you should add VAT on? Did you claim the input VAT back?

We buy any car also buy commercial vehicles!

 

[DWS]

We buy any car also buy commercial vehicles!

But must admit OP does mention car!

 

[Ziggy2024]

We buy any car also buy commercial vehicles!

If it's a commercial vehicle then OP will suffer the VAT. Webuyanycar provide a consumer service, just like a supermarket or a corner shop the price includes VAT although it's not explicitly noted.

 

[samuel5]

The car is a Tesla (not sure if that makes a difference with the VAT or not) but my accountant just confirmed I do not need to charge VAT as we did not claim any VAT on the purchase, which I thought we did.

 

[UK Contractor Accountant]

I do not need to charge VAT as we did not claim any VAT on the purchase, which I thought we did.

hmm! either you did or didn't claim it. Need to check back over your vat return submissions.

The car would have been a qualifying car for vat purposes when your company bought it but would have been blocked from claiming back the vat unless you could prove that is was for 100% business use.

On the assumption vat was not claimed back when your company bought it then no vat is charged when you sell it on.

 

[Ziggy2024]

hmm! either you did or didn't claim it. Need to check back over your vat return submissions.

The accountant has confirmed that the VAT wasn't claimed.