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Post Info TOPIC: Input VAT on part exchange van
Leger


Master Book-keeper

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Input VAT on part exchange van
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One of my clients has purchased a new van and part exhanged his old one (both transit type) 

My understanding is that on the PX, input VAT is chargeable if VAT was claimed at purchase (it was, as part of a pre reg claim)

However, the main dealer has produced a used car purchase invoice and the VAT is nil.

My feeling is that I should ignore that and apply the VAT, am I right?



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Leger


Master Book-keeper

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*bump*

 

Want to be absolutely sure of this before submitting the VAT return, because my way will cost the client approx £500 VAT.

Incidentally, assuming I'm right, the dealer has put down £2760 px, VAT nil, so should a VAT only invoice be sent for £562, or should I put it in the books as £2300 + £460 VAT



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Shamus


Forum Moderator & Expert

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Sounds like an admin error by the dealership. Is there any way that your client can get a replacement invoice John?

You mention that they are a main dealer rather than a backstreet jobby so should be quite straight forwards... Also, sure that the dealership will be quite happy to pay over £460 less in VAT to HMRC for doing very little (assuming that they have not already corrected the mistake but not issued new paperwork to your client).

All the best,

Shaun.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Leger


Master Book-keeper

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Thanks Shaun

I will ask them to get one, just wanted to ensure I was right, which I was pretty sure I was.  With it being a main dealer there was a seed of doubt, and I didn't want to cost my client unnecessarily.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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