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Post Info TOPIC: VAT on selling cars
clare92


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VAT on selling cars
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Hi All,
My client buys cars, does them up, then sells them on. He has recently sold a car (on which he originally paid VAT on when he bought it)
When he sold it he accepted a commercial vehicle as a part exchange.
How does this get recorded in Sage? and what is the correct route for the VAT?

The transaction is:

Purchase of car = £5250 + £918.75 vat
Value after works done = £7904.25 + £959.75 vat
Sold Car at £3000 + £525 vat + commercial vehicle

Any help would be great, thanks Clare

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scribes


Newbie

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Is he registered for VAT as a car dealer? If not then he cannot claim the vat on the car

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HendyPhilhendy


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Assuming he is VAT registered they could use the second hand margin scheme for used cars. HMRC website has some good help with this

http://www.hmrc.gov.uk/vat/sectors/motors/selling-cars.htm

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