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VAT on Van sale when purchased pre registration

  • Associate PM.Dip
  • Practice Licence
  • 2 posts
  • # 114860

Evening,

 

Please can someone confirm my thinking on whether VAT is chargable on the sale of my clients van?

The scenario is as follows:

 

Aug 2015 - Van purchased (no VAT reclaimed as self employed client not VAT registered)

Mar 2017 - Client wants to purchase replacement van and part ex current van.

 

He is now registered for VAT, so am I correct in thinking he will need to charge VAT on the sale (part-ex) regardless of whether it was recalimed or not?

 

Thanks,

Ali

  • Fellow
  • Practice Licence
  • 28 posts
  • # 114877

Hi Ali

You don't mention when your client registered for VAT, however at that time they would have been able to reclaim VAT on some goods they still had at the time of the registration.  

The time limit for backdating claims for VAT paid before registration is four years for goods so your client would have been able to reclaim the VAT on the purchase, assuming that it was charged

Hope this helps

Lisa

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