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vat on second hand goods

(14 Posts)
lou33 Sat 30-Apr-05 16:56:34

need an answer fairly quickly chaps.

can you charge vat on second hand goods being sold by an individual at auction?

sent a cheque for a laptop for the kids to someone and they are asking for vat on top of the invoice price


SaintGeorge Sat 30-Apr-05 16:58:59

As far as I am aware it is the Trader who has to be registered for VAT. If they have a business turnover of more than £30K per annum. If the individual is registered then they can charge VAT. Ask for their VAT registration number, although it should be published on the web page if they intend to charge VAT on the products advertised there.

lou33 Sat 30-Apr-05 17:08:14

Thanks. So in other words if you are a business selling it, then you can charge vat, but if it's someone just selling it privately, then he shouldn't be? No vat number on the ebay page, and it was in teensy writing hidden away about vat being added, although the invoice we received didnt have the vat on it

Tinker Sat 30-Apr-05 17:10:17

VAT threshold is 58/59k now (would have to check). If they're registered, ask for VAT number - if not sure, ring local VAT office to verify. Check HMRC site online to get number of National Advice Service. Can only tell you if it is a valid VRN though not tell you whose it is. If he is registered, he must charge VAT - depending upon nature of goods.

SaintGeorge Sat 30-Apr-05 17:10:24

Just checked a couple of things - the threshold is now £58k per annum but that is only for mandatory registration anyway, businesses can register voluntarily if they want. Either way, it is the Trader that is registered so basically yes, if they are registered they can legally charge VAT regardless that goods are 2nd hand.

Tinker Sat 30-Apr-05 17:10:58

If he's not VAT reg is definitely shouldn't be charging VAT

BadHair Sat 30-Apr-05 17:23:20

If he hadn't put the VAT on the invoice he can't charge you.

lou33 Sat 30-Apr-05 17:27:02


i emailed back saying the invoice didnt have vat on it, so we only sent a cheque for the amount invoiced, obviously. I also asked for his vat number, because if he doesnt have one then he can't charge me, and given him the option of cancelling the transaction , saying i will stop the cheque if he wants. Sound fair?

Tinker Sat 30-Apr-05 17:31:58

Yep. If he is registered, he could treat your payment as VAT inclusive. If he's not then he's charging VAT fraudulently.

BadHair Sat 30-Apr-05 17:37:32

Sounds fair Lou. If he doesn't go along with that I'd cancel the cheque anyway - he sounds a bit fishy.

lou33 Sat 30-Apr-05 18:30:14

cheers, thought we were right

lou33 Sat 30-Apr-05 18:39:14

just had a reply saying he will take the money as is. Had a whinge aboout how he had to pay vat on it when he got is 2nd hand, but not really our prob.

Said he doesn't want negative feedback or to fall out.

Tinker Sat 30-Apr-05 18:40:56

Well, he sounds like a bloody thief. Send him my name and I'll sort him out

lou33 Sat 30-Apr-05 18:42:43

he just needed a stern talking to by me, i had left it to dh up until now.

Naughty boy

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