VAT on commercial vehicle's

[BigSi]

If a company (VAT registered) bought a commercial vehicle this year and subsequently claimed back the VAT (in the same year), when they sell the vehicle next year with VAT added, what rate will it be?

Will the seller add VAT at 17.5% when the vehicle was originally sold, and VAT claimed back by the company, or at the new increased rate of 20%?

 

[Ponty Massive]

What ever you sell in 2011 will be at the VAT rate of 20%. Would make any difference to yo as your only collecting it for HMRC

 

[Sintra]

VAT as far as i am aware is always calculated at the current rate.

Buy van today and pay 17.5% VAT which would be claimed back on next VAT return. Sell van in January and charge buyer 20% VAT this would then be owed back in your next return.

 

[accordfire]

If a company (VAT registered) bought a commercial vehicle this year and subsequently claimed back the VAT (in the same year), when they sell the vehicle next year with VAT added, what rate will it be?

Will the seller add VAT at 17.5% when the vehicle was originally sold, and VAT claimed back by the company, or at the new increased rate of 20%?

VAT is ALWAYS charged or paid at current rates.

So you buy, at time A, you pay VAT rate current at time A.

When you sell at time B, you sell at your price, plus VAT rate current at time B.

It doesn't matter if there's been a change or not - always, current rates.