VAT Free MH'S Forums

bognormike · Moderator

another point that may be useful to owners of motorhomes (or cars) which have been supplied VAT free, is that servicing is also VAT free.

see the extract from HMRC below for VAT traders;-

"You can zero rate the repair or maintenance of an adapted motor vehicle when:

* the work relates to a vehicle (or an adaptation to a vehicle) that was eligible for zero-rating when it was bought/supplied; and
* you should obtain an eligibility declaration

If you did not supply the vehicle you will need to check the original invoice for the purchase of the vehicle to confirm that it was supplied at the zero rate. You should retain a copy for your records. "

The declaration is from the disabled person that he / she qualifies and that the vehicle is for his / her personal use.
So disabled people who have bought a VAT free vehicle can ask the garage to "Zero-rate" the servicing if they provide the original invoice showing zero rating of the vehicle, and provide them with a declaration of disablilty.

some-where-in-oxford

Does the motorhome stay zero rated when it is sold on?

bandaid

Unless the vendor is VAT registered, then VAT cant be charged regardless of the circumstances.

peedee

some-where-in-oxford

I am going off topic now, I was thinking about the US service men that were at Upper Heyford some years ago.

Some bought British motorbikes vat free, and others imported Harley's vat/import duty free. If they took these back to the states all OK.

I seem to remember they had RED number plates, with UK registration numbers. I thought this was to show no duty has been paid?

If they decided to sell to British citizen, then the purchaser had to pay the vat that would have been due. This is what I was told at the time by one of the servicemen.

This may have been wrong, but I sure some vat was due if they sold here.

I was wondering in vat free for disabled use may have been similar.

peedee

The bit about the Americans is 100 percent correct, I used to do it and as far as I know expats still do. You had a year to export the vehicle other wise you paid duty etc.

Regarding a none disable person buying a second hand adapted vehicle and getting clobbered for VAT. I don't think so because there has been a scam going on whereby disabled people have been buying new vehicles VAT free and immediately selling them on at a profit. We had a thread about this sometime ago and could not see where this was illegal.

peedee

bognormike · Moderator

JohnsCrossMotorHomes

It would appear that a disabled person buying a VAT free MH that when they sell it at the moment that they are not liable to pay the VAT on the reduced value although I am sure HM Customs will be looking at that loophole!

If they part exchange it or sell it to us, we would treat it as a VAT free vehicle and add VAT to the nett selling price as a we do a new MH or use the margin scheme.

Either way the amount of Vat is the same at the end of the day.

It is possible with the correct documentation to get the MH exemt from Road Fund License.

However to get a MH exempt from Vat the buyer must satisfy the supplier that they are disabled and produce documentation to prove it. Waving a walking stick is not valid and the MH must be modified for their use. Fitting a grab handle or a bike rack for a wheelchair doesnt really qualify.
Its a minefield.

Peter