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van sales question

Old Jun 24, 2010 | 07:21 PM
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why is it that when you buy a van new or used it always has a price + VAT. why do they add the vat
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Old Jun 24, 2010 | 07:49 PM
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a business can claim vat back
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Old Jun 24, 2010 | 07:50 PM
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yes but why is it added in the first place
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Old Jun 24, 2010 | 07:53 PM
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Because most van buyers are business users, being either company vehicles or run by the self-employed. Virtually all companies and a lot of self-employed will be vat registered and if the vehicle is used solely for business use then the VAT can be claimed back. The seller has of course to be VAT registered to charge the VAT in the first place.

Kevin
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Old Jun 24, 2010 | 08:02 PM
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Vat has to be paid on the vehicle, if its been a business user then VAT wouldnt have been paid on it (well it would have paid then all claimed back). So if youre a private buyer you pay the VAT on the price you pay. If youre a business user you pay the vat then claim it all back......

Last edited by r32; Jun 24, 2010 at 08:03 PM.
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