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rich89

VAT Q cars from Auction

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Bought a few but never really noticed.

Why does a VAT Q car make the buyers fee etc all inc VAT?

Just bought a car and am going to save £135 on fees whereas a non VAT Q car there is no VAT that I can reclaim on the fees.

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12 minutes ago, rich89 said:

Bought a few but never really noticed.

Why does a VAT Q car make the buyers fee etc all inc VAT?

Just bought a car and am going to save £135 on fees whereas a non VAT Q car there is no VAT that I can reclaim on the fees.

Because it does :D

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Off the BCA website

Marginal
This means that no VAT can be claimed back on the vehicle by a customer that is VAT registered.
 
VAT Qualifying
This is where a customer that is VAT registered, purchasing the vehicle for a qualifying purpose, is able to claim VAT back on the vehicle, as it was originally bought by: Leasing and Contact Hire Companies, Daily Rental Companies & Taxi Firms/Driving schools for business use.

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On a margin vehicle VAT on the fees is not recoverable and should not be invoiced plus vat, just like when you sell a margin vehicle, although vat is paid on the margin - it can not be recovered and is not itemised separately on the invoice.

 

 

Edited by Stalker
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20 minutes ago, met said:

Off the BCA website

Marginal
This means that no VAT can be claimed back on the vehicle by a customer that is VAT registered.
 
VAT Qualifying
This is where a customer that is VAT registered, purchasing the vehicle for a qualifying purpose, is able to claim VAT back on the vehicle, as it was originally bought by: Leasing and Contact Hire Companies, Daily Rental Companies & Taxi Firms/Driving schools for business use.

Ha, I know the difference but don't understand why the fee suddenly becomes VAT Q.

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