quick vat question

[annemarie482]

if a person is vat registered.....
and wishes to sell a machine that they own.....
and a person who is not vat registered is interested in buying the machine....
does the seller have to charge vat on the machine?
or can it legally be sold without charging vat on the machine?

[henry20]

I am pretty sure you would have to charge a price inclusive of VAT - if a shop is VAT registered, they sell the goods inclusive of VAT regardless of whether the customer is VAT registered or not.

[starfish]

pretty sure the vat man will want his money

[cazmanian_minx]

If it's a new machine and the seller is VAT registered then they have to charge VAT on it regardless of the status of the buyer. However, there's no VAT on second hand goods if I remember correctly.

[annemarie482]

now thats what im after cazmanian_minx

they machine was bought second hand from a vat reg dealer.
it is now going to be sold by a vat reg person to a non vat reg person.
so not quite such how the vat issue stands.

[Stefan]

Of course there is VAT on second hand goods. If you are registered for VAT and sell an item that is not exempt from VAT (like livestock feed for example) you will have to charge VAT, no matter who you sell to. If you don't charge VAT you will still have to pay 20% of the money received to the VAT man...

[charlie]

Stefan is indeed correct.

However, there is a caveat.

Did this person, who originally purchased the item in question, buy this machine thru their VAT registered business - or buy it as a private individual.

Basically, when you bought it did it go through your books and did you reclaim the input VAT at that time? If so then you MUST charge VAT on its disposal.

If it is simply something bought personally, and the transaction has nothing to do with the VAT registered business,then like any other private sale VAT need not be applied.

Why don't you ask your accountant for such advice to be certain?

[annemarie482]

thanks for the help folks, confirmed it with the accountant today and yes vat is to be paid (as we thought) just had someone enquiring about the machine last night, trying to convince us otherwise!

[KEEP_ON_TRUCKIN]

sorry didn't read full thread and noticed it had been answered already