VAT Forums

Hymie

Hi all,
We bought a lhd hymer from germany last year.
Now we want to change it for another new one, but im puzzled about the VAT situation.
The german dealership says i will only be charged vat on the actual amount i pay them - this is obviously much less than it would normally be for a new vehicle as a part exchange is involved.
The VAT office was as much help as a chocolate tea pot - there was no-one there who knew! - so they are looking in to it and will let me know on monday.

If anyone knows - please post here or message me.

Anyone looking for a Hymer C644GT (AUTO) let me know.

Thanks

stella2

if the VAT rules are the same as in the UK, there is no VAT on second hand goods traded in. In the UK the dealers pay VAT on the margin they make on the sale - if they buy in at 10,000, and sell at 12,000, then vat is due on the 2,000, so 350 vat is due, giving them a net profit of 1650.
Throughout the EU, when selling new, VAT is charged at the rate in the country of sale on the new van; the trade-in doesn't come into the equation. If you are a VAT registered trader in the UK, you can supply your VAT number to the dealer and he should supply it at zero rate (without VAT), and you then pay VAT in the UK when you import it. If it is for business use you can then claim the VAT through the normal trading arrangements (but that's another story!).