Ford transit custom crew cab - VAT when trading in van

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Fri 3 Nov 2023 18:52
Ford transit custom crew cab - VAT when trading in van - Ropy

Last year, we bought a 2020 transit custom crew cab from a Ford dealer. It was advertised as £26,000 + VAT. We paid the VAT and as we are not a business (it was bought as our daily transport and as a tow car) we haven't claimed the VAT back.

Due to a change of circs, we now want to swap it to an SUV. The prices we are getting from the book for trade in are £22,000 which we are pretty sure is not inclusive of the VAT we paid.

The question I have is what happens at trade in in terms of VAT? Would we be able to claim back the VAT we paid (we're not VAT registered and it has never been used for a commercial purpose) or would the trade in price we get have VAT added on top? It would seem we are going to lose 9 grand if we can't recoup what we paid in VAT.

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Fri 3 Nov 2023 19:13
Ford transit custom crew cab - VAT when trading in van - Falkirk Bairn

The man in the street pays VAT

The man in the street cannot get VAT back,

VAT Reg companies can

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Fri 3 Nov 2023 20:13
Ford transit custom crew cab - VAT when trading in van - Ropy

I get that, but should the trade in price be the value of the van plus VAT?

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Fri 3 Nov 2023 20:30
Ford transit custom crew cab - VAT when trading in van - Adampr

I get that, but should the trade in price be the value of the van plus VAT?

No. You can't charge VAT if you aren't registered for VAT.

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Fri 3 Nov 2023 22:52
Ford transit custom crew cab - VAT when trading in van - Falkirk Bairn

Once a van has been sold to a private buyer the van can no longer be bought or sold as £XXXX+VAT

It becomes a flat price for the buyer although in the background a dealer has VAT on his/her margin and can off-set some refurbishment cost VAT.

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Sun 5 Nov 2023 21:38
Ford transit custom crew cab - VAT when trading in van - SLO76
The price quoted should be plus vat, and how are they to know if you’re self employed unless you tell them? When I sold my last business vehicle (a VW Caddy) I sold it for £3,500 plus Vat, despite having already sold the business.
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Sun 5 Nov 2023 22:14
Ford transit custom crew cab - VAT when trading in van - Adampr

If you are to charge VAT, technically you have to issue an invoice with your VAT number on it. Anybody paying you is, again technically, breaking the law if your VAT number isn't on there.

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Mon 6 Nov 2023 08:27
Ford transit custom crew cab - VAT when trading in van - Falkirk Bairn

A son sold an old Transit van at work, the employer is VAT registered.

The van had not been used for many months. In fact not started either. Started 2nd turn and the dashboard was lit up like a Xmas tree. Amazing thing was all the lights disappeared after he had driven about 10 miles. On re-start, fired on 1st turn, all was well.

Path of least resistance was WBAC. He was told anything above £4,000 (Depreciated Value) was acceptable.

On-line the quote was ~ £6,100. They knocked off £100 for bonnet chips, one severe.

Duly paid £6,000 - The paperwork showed Van @ £5,000 + £1,000 VAT = £6,000

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