this looks like a tax fraud scam to me, the original owner was a private buyer on finance, so no vat claimed back on said car. the new owner is a private buyer for said car with no vat claim back. to me this looks like a tax fidle going on here from the selling agents to get more money. my understanding of the rules is you cannot charge for vat on a car that has never been subject to a tax recall in the first place from a business that is vat registered.

Was the car previously on a lease from the finance company to a private individual?  If so, this is OK as the finance company would claim back the VAT on the car and then charge VAT on the monthly rentals.

 

Also, it is not uncommon for cars used by driving schools to be in the instructor's name but they would be VAT qualifying.  I've also come across hire companies registering cars in the directors' names so that the hire company is not shown as the previous owner in the registration documents.

this looks like a tax fraud scam to me, the original owner was a private buyer on finance, so no vat claimed back on said car. the new owner is a private buyer for said car with no vat claim back. to me this looks like a tax fidle going on here from the selling agents to get more money. my understanding of the rules is you cannot charge for vat on a car that has never been subject to a tax recall in the first place from a business that is vat registered.

This is what i was meaning. Surely if VAT has been payed by the previous owner, i need to confirm if it was a lease car or private, then i should be paying nil tax on it and by them charging tax its going straight in there pockets. The only VAT that should be on is the prifut margin. (From what ever they bought it at to the price of the car BEFORE they have added tax to it) ??

perhaps you could make a call to your local Trading Standards office and ask them to clarify the situation before completing the sale

perhaps you could make a call to your local Trading Standards office and ask them to clarify the situation before completing the sale

Or the SFO

Or the SFO

it's not that serious, is it

it's not that serious, is it

You'd better believe it

Best not complicate matters by mentioning buying used cars that were originally purchased under Skodas VAT free offer.*

 

(I know it's a con as the government wouldn't allow it and it's just a discount equivalent to VAT at 20%)

Best not complicate matters by mentioning buying used cars that were originally purchased under Skodas VAT free offer.*

 

(I know it's a con as the government wouldn't allow it and it's just a discount equivalent to VAT at 20%)

 

Everyone call the SFO  

Everyone call the SFO  

screw that, I'm off to check my tin foil hats group buy thread and see if there's any more takers

I think a lot of people have missed the point penpusher made earlier, and I will try to remake.

The dealer will only pay the VAT on his profit margin, he can choose which VAT scheme suits his business and how he pays it. a- Either on the profit directly, or b - claiming back the VAT on the purchase price and paying on the full selling price.

Same end result, and wouldn't effect the asking price to the buyer. Purely done for cashflow and business needs.

I run my own business and VAT is paid simarly. Every quarter claim back all VAT on qualifying purchases and pay on all qualifying sales, i.e. pay VAT on all VAT qualifying profits.

In my area of retail there are also 3 main VAT schemes to choose from, some suit me better than others. More importantly this would not effect the price the customer pays, nor would they ever no.