VAT Receipt Issue - Jeep

[Ravenelli69]

I bought a commercial jeep four years ago and am now in a position where I need to trade it in. The problem is that I am not registered for VAT (paid full wack when buying jeep new) and I keep getting asked by the various dealers about providing a VAT receipt!!! This issue is knocking 2 -3k off the trade-in price that I'm being offered! Is there anyway I can get around this? My father is registered for VAT and I am wondering if I could put it into his name??? Bit baffled so any advice appreciated,

Rav

 

[Tomorrow]

You cannot charge VAT if you are not VAT registered.
It should not make a difference to the trade in price.
For example if you are looking for 10,000 for the Jeep - when you are VAT registered you would be charging 12,300 (10,000 plus vat)
And the 2,300 would be passed to Revenue.

Hope this helps

www.accountantonline.ie

 

[Limerick man]

As far as i know, if, when bought new, the VAT is not claimed back on a commercial vehicle it cannot be claimed back in future and would be treated the same as a private vehicle.

This would devalue the second hand value of it by the VAT amount, and maybe a bit more.

 

[Ravenelli69]

Thanks for the replies - I thought that was the case with the VAT and not claiming it back from the start - hence the reduced offer! What about trading it in up the north?

 

[mandelbrot]

Thanks for the replies - I thought that was the case with the VAT and not claiming it back from the start - hence the reduced offer! What about trading it in up the north?

I think you're not really understanding what's going on here.

If you were VAT registered and obliged / able to give a VAT invoice on the sale of the jeep to a garage, you'd then be required to give the VAT to Revenue.

So if you're being offered 12k by the garage without a VAT invoice, or 14,500 if you issue an invoice, it's all the same to you because the 2,500 difference is tax you're collecting on behalf of Revenue.