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Post Info TOPIC: Selling a van used for commercial purposes
kezzy84


Newbie

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Selling a van used for commercial purposes
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Hi

We are a limited, VAT registered company and are selling one of our motor vehicles which has been solely used for trade purposes (nature of the business is mobile out the back of the van).

We are selling the vehicle to another Ltd VAT registered business.

If the selling price is £5000 + VAT, do we need to pay over the £1k VAT (i.e VAT at 20%) to HMRC on the sale?

I'm a bit confused because of the margin scheme I've read about.

There is still finance left on the vehicle, which will be paying over immediately.

Thanks in advance



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gbm


Guru

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Posts: 896
Date:
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"If the selling price is £5000 + VAT, do we need to pay over the £1k VAT (i.e VAT at 20%) to HMRC on the sale?"

Yes, you'll receive £6k, £1k of which belongs to HMRC.



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Regards,
Nick

Website: www.gbmaccounts.co.uk
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