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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13864
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Client who is vat registered is buying a vehicle in italy,

Resolved Question:

client who is vat registered is buying a vehicle in italy, to re-do and sell to a client in France. All in Euro's.
there is no vat being charged on buying as its off an individual but the question being does the client charge vat to its customers.
the car is very old classic.
thanks
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer Your client will use the second hand margin scheme to declare the VAT (chargeable on the difference between pucahse and selling price) but will not charge VAT on the buyer. Use the calculator here re the vehicle https://www.gov.uk/vat-vehicle-salesWhich will verify this for you Let me know if I can be of any further assistance ThanksSam
Customer: replied 1 year ago.

just to clarify.

he will not be able to add vat to his selling cost.

but will be expected to pay vat using margin scheme.

thanks

Expert:  Sam replied 1 year ago.
Hi Thanks for your response - yes that' correct as he needs to pay VAT on the purchase UK business (but just the difference between acquisition and selling price) but do not pass the VAT on, as the purchase and sale will fall within the second hand margin scheme (cheaper for the client) ThanksSam Thats
Customer: replied 1 year ago.

does "purchase" include any restoration work that is going to be carried out.

Expert:  Sam replied 1 year ago.
Hi Thanks for your response No - this is restoration costs, which will be reflected in the profits and expenses accounts. (And any VAT suffered on parts purchased will be claimed) Let me know if I can be of any further assistance, but it would be appreciated if you could rate the level of service I have provided. Thanks Sam
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