Re: selling cars/when are you a dealer Archived Message
Posted by Tony Sefton on November 23, 2009, 9:02 am, in reply to "Re: selling cars/when are you a dealer"
Hi Peter. >>>>>>Remember if you buy a vehicle, and even if you have to fit a new engine, you are still liable for vat on the profit between the buying and selling price, the cost of the engine cannot be deducted from the selling profit.<<<<<<<< I think I see what your getting at but surely the cost of the engine will be deducted from the "profit". i,e if the car cost £1000, and the engine cost £500 so its cost you £1500 in total and you then sell it for £2000. you should only pay TAX on £500.00 But you should pay VAT on the Difference between the buying price and selling price, This is Because if you buy the engine for £500 + vat you can claim back the vat content on that or anything else that you have spent. ?? or is this theory completely wrong too. ?? P.S. Non Car Dealer Tony.
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