Vat & Commercial Vehicle

M

misssmith

Guest
Vat & Commercial Vehicle

I have the opportunity to buy a commercial jeep at a really good price from a private individual. I want to buy the jeep through my company so that I can claim the vat back. Is this still possible if I'm buying from an individual and not a company / garage?
 
Dunno about the VAT issue, but I guess you would be liable for Benefit In Kind if your company provides the vehicle to you.
 
VAT & Commercial Vehicle

You/your company could only claim the VAT back if the sale was on foot of a VAT invoice.
See:
[broken link removed]
Invoices issued by unregistered persons
9.10 Where an invoice showing an amount of VAT is issued by a trader not registered for VAT, that trader is liable for the VAT shown on the invoice and is also liable to prosecution.
 
Vat & Commercial Invoice

Thanks for that Crugers. Just to be clear...if I get the guy selling me the vehicle to sign a receipt for total cost inclusive of vat then I should be covered? I just want to make sure that this doesn't come back to haunt me. I even rang the tax office and the lady I spoke to said that she wasn't 100% sure but..... and that 'they were thrown in at the deep end'!!! I don't mind so much about the benefit in kind as I reckon I'll still save if I can get the vat back.
 
Re: Vat & Commercial Invoice

...if I get the guy selling me the vehicle to sign a receipt for total cost inclusive of vat then I should be covered? I just want to make sure that this doesn't come back to haunt me.
Click to expand...

If you do this it will come back to haunt the guy selling you the jeep. If he gives you a recipt saying he received €5000 including VAT then he's liable for the percentage of that which was VAT. Also he's liable for prosecution because he's not registered for VAT.

It sounds like you want to pay him what he's asking say €5000, but then claim a portion of that back from Revenue, which obviously you can't do unless he's remitting back that same portion.

You can't just treat Vat Registration as a way of getting a discount. That's not what it is. You also can't just get your side of the transaction sorted (a VAT receipt) knowing that the other side of the transaction is not OK.

If it's a good deal then don't worry about the VAT. Have a look at how much a similar vehicle would cost ex-vat from a vat registered dealer.

-Rd
 
VAT

If you claim VAT back on an invoice from an unregistered person, it will come back to haunt you.
 
VAT

Forgot to say - a VAT invoice is only valid if it includes the vendor's VAT number. You are straying into fraud territory if you arrange for a non-existent VAT number to be included on an invoice and then attempt to reclaim the VAT. VAT frauds account for the majority of people jailed nowadays for tax offences.
 
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