VAT on second hand goods

[Carol Anne]

I bought a second hand car part from a breakers yard and was charged VAT on it. As VAT would originally have been paid on it somewhere along the line, is it right to have to pay it again? I always thought secondhand goods were exempt.

[kempie]

Second-hand goods (or rather transactions involving the supply of used goods) are liable to VAT.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_FAQs&propertyType=document&columns=1&id=HMCE_PROD_008650

The vendor could operate the Margin Scheme when selling used goods i.e. VAT is only charged on the profit from the sale or where no profit exists there is no VAT payable, however if the vendor is not part of the Scheme then VAT is payable on the full price of the item.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000145&propertyType=document

[Carol Anne]

thanks kempie