VAT on sale or lease of second hand goods

[PaulHoughton]

In general, is VAT chargeable on second hand goods? what if those goods are hired out to others, is vat payable on the rental payments?

for example:

A company that purchases a new car and then leases it out can claim back the VAT on the purchase price and then charge VAT on the lease payments made by the client.

What happens if the company purchases a second hand car, (VAT paid by the first owner)? Can the company claim back any of the VAT and does the company have to charge VAT on the lease payments?

confused!

 

[callybags]

your question does not make any sense.

If the company's business is buying and leasing out cars, then it makes no difference whether the cars are new or second hand.

If the company is VAT registered then it can claim VAT on it's imputs but must charge VAT on any sales.