Sale of a VAT qualifying car

Forum Categories › VAT ADMINISTRATION ISSUES › Sale of a VAT qualifying car

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  • 26 July 2018 at 00:22 #55481
    Anderson
    Member

    Hi there,

    I am a VAT registered company and purchased a qualifying car which was used 100% for business.

    I have claimed some VAT. Now I intend to sell the car, do I charge VAT?

    Can anyone advise as to whether there is a logical explanation for this?
    Thanks

    8 September 2018 at 22:43 #55848
    vatconsultant
    Member

    In the unlikely event you find a used car for which the VAT was originally reclaimed, it will be described by the seller as ‘VAT Qualifying’. This means that a VAT-registered individual or company buying the car solely for business use can reclaim the VAT from the purchase price.

    If you sell a car on which you recovered VAT then you must account for output tax on the full selling price. You must issue a tax invoice to a VAT-registered buyer who requests one. Sales of these vehicles are not exempt and they cannot be sold under the second hand margin scheme.

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