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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Sale of Equipment
Post Info TOPIC: Sale of Equipment
Vix606


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Sale of Equipment
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Hi, the business I work for is relocating and the proprietor has agreed to sell some of his equipment to the new tenants (they are both mechanics). He received part payment of the price agreed and provided the buyer with a letter as means of receipt, however I noted that there is no mention of VAT on it, as both businesses are VAT registered and the equipment is an asset of the business shouldn't VAT be added?



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Wella


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Hi

I would agree with you. Assuming that the payment made, was not a refundable deposit.

The buyer would need a VAT receipt for the purchase of the assets, so they can reclaim the VAT.

The seller would have to account for the part payment as a VAT inclusive payment.

Bill



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Vix606


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Hi Bill

Thanks for your reply :)

Victoria

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