Vat On Secondhand Goods

[bob561941]

Is V.A.T. payable on secondhand goods ?

[buildersmate]

Depends what you mean.

If a VAT-registered trader sells a second-hand item that he has bought from a private seller (non-Vat registered), he is obliged to charge VAT on the marginal difference between selling price and buying cost.

It's all explained here.
http://www.hmrc.gov.uk/vat/start/schemes/margin.htm

[Skyline D]

Yes, buildersmate is, as usual, right.

VAT is payable on any goods sold by a VAT registered trader that are vatable. The amount of owners and the age of the item in question are irrelevant. A book is vat free and so remains vat free no matter how many owners it has had. A car though has VAT charged on it no matter how often it is traded back in and re-sold by the same garage.