One for the accountants

[michael j]

I bought a van 18 months ago when I was self employed. Didn't work out and now I'm employed. I want to sell the van but don't know where I stand regarding VAT. I've seen vans advertised as having 'No VAT to pay'. Can somebody please explain how it works.
Ta.

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Ducati 996

[Tonka]

When you purchased the van you would have been invoiced for the van plus VAT which if you were VAT registered you would have been able to claim back on your quarterly return. Now when you sell you will need to charge VAT and 'pay' on your final / next VAT Return.

However, if you're not or were never VAT registered, you'll have paid the lot on purchase and won't need to charge any on the sale as you don't have to deal in VAT as you're below the threshold.

May be a bit more complicated if there has been a change in your VAT status between purchase and sale but would think (hope) that's unlikely.

HTH
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[michael j]

Thanks.

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Ducati 996