Vat exempt re wav

[shelly21]

Hi all. I know we can claim vat but how does it work when purchasing a 2nd hand wav from a trader? Do they claim the vat? Thank you.

[Shaun]

Hello Shelley
guess what , there is yet another form for you to fill in…
please see attached link
https://www.gov.uk/government/public...hicle-vat1615a

complete the form and your dealer sorts out the VAT side of it

MND is on the list for VAT exemption

shaun

[shelly21]

The man at dealer ship is doing that so I guess the price advertised is exclusive of vat. Thank you.

[Shaun]

Hi Shelley
the VAT on 2nd hand cars is not the same as on new purchase, (if a private sale there is no VAT on used cars), if it’s a dealer it is called Margin scheme ,It is basically 1/6 of the difference between his buying price and the selling product price, it is generally not shown in any paper work.
might be worth checking your dealer is VAT registered.
I guessing your dealer sells WAVs so they are probably used to VAT exempt and may have his own version of the exempt form ,it’s only for his records and a tax reconciliation

VAT is very complicated system , but I found this article, scroll down to the bottom , section on VAT relief adapted cars
hope this helps
https://www.cargurus.co.uk/Cars/arti...n_buying_a_car

shaun

[shelly21]

I found this very same article. Thank you kindly for taking the time to explain it all. I'm excited that we found a decent wav.