- Joined
- May 21, 2009
- Messages
- 6,132
- Location
- Planet Earth
- Car
- Polo GTi (and a travel pass for the train and subway)
bolide
MB Enthusiast
Assuming we're talking cars, not commercials, VAT is payable on first purchase. Subsequent, secondhand sales do not show VAT on the invoice and VAT is not charged to or paid by the buyer*
But - the dealer pays VAT on his margin to HMRC. He can't itemise it on the invoice because he can't charge it
So if a dealer buys an SLS for £100k and sells it for £110k he has to write a cheque to HMRC for £2k!
Oh the joys of being a motor trader!
* You'll see some cars, particularly at auction, quoted as being VAT qualifying. I have no idea what the explanation is
Nick Froome
the independent Mercedes Estate specialists
But - the dealer pays VAT on his margin to HMRC. He can't itemise it on the invoice because he can't charge it
So if a dealer buys an SLS for £100k and sells it for £110k he has to write a cheque to HMRC for £2k!
Oh the joys of being a motor trader!
* You'll see some cars, particularly at auction, quoted as being VAT qualifying. I have no idea what the explanation is
Nick Froome
the independent Mercedes Estate specialists
it was the 4 that had me puzzled usually they use that for A not H.5417
5=s
4=h
1=i
etc.
but i know what you mean that it does seem crazily overpriced for a sound system in a car to you and me but the people buying and ordering these cars from new probably have the really expensive home entertainment systems that can cost even more mad money.
D
Deleted member 37751
Guest
Is it not the case that the VAT can only be reclaimed for 3 different transactions and then it's lost?
Meaning if the car is sold to 3 consecutive VAT registered owners, they can all claim the VAT back, but the fourth owner, regardless of VAT qualification cannot?
the cars you see at auction saying vat qualifying are most likely to have come back from a leasing company or hire company were they have claimed the vat back when they had the car new and when they come to dispose of the car they will have to pay the vat back at the value of the car now.
- Joined
- May 21, 2009
- Messages
- 6,132
- Location
- Planet Earth
- Car
- Polo GTi (and a travel pass for the train and subway)
it was the 4 that had me puzzled usually they use that for A not H.
but i know what you mean that it does seem crazily overpriced for a sound system in a car to you and me but the people buying and ordering these cars from new probably have the really expensive home entertainment systems that can cost even more mad money.
My home system cost more than my car ....:bannana:
st4
Banned
My home system cost more than my car ....:bannana:
Not when the car was new, unless there is something you did not tell me....
- Joined
- May 21, 2009
- Messages
- 6,132
- Location
- Planet Earth
- Car
- Polo GTi (and a travel pass for the train and subway)
Yes, I bought both less than retail
Car was not new, home system was a display system from Linn in Glasgow. Got 20% off list even though it had never been switched on
Not divulging the system cost though ...
st4
Banned
Yes, I bought both less than retail
Car was not new, home system was a display system from Linn in Glasgow. Got 20% off list even though it had never been switched on
Not divulging the system cost though ...
Hmmmmmmmmm. 20% off brand new, I could cope with that. However majority of my music collection is on Mp3 or CD. Would such a good system be overkill for someone who ultimately controls playback of music from a PC or a CD player?
Final question, need your input actually, Mac's....are they worth it, thinking next year I will need another computer.
- Joined
- May 21, 2009
- Messages
- 6,132
- Location
- Planet Earth
- Car
- Polo GTi (and a travel pass for the train and subway)
st4
Banned
No.
Yes.
Bring over your favourite CD sometime. I'll supply curry
Drop us a text, don't finish work til 8pm during weeks, but free this Sunday as finish at 5pm....
I'll bring over my CD of choice, but I think you may have it....
