Unregister Car With " Vat ".... ???

[rosh78]

friends,

When i go to check car from car sale they are talking something regarding VAT...

they said that they can give VAT for me...

i don't understand what that mean and whats the benefit for me...

please explain me about this..

and also i want to know about if i going to import a car, is that vat is available for me?

(I'm talking about VITZ 1000cc)

[harshansenadhir]

friends,

When i go to check car from car sale they are talking something regarding VAT...

they said that they can give VAT for me...

i don't understand what that mean and whats the benefit for me...

please explain me about this..

and also i want to know about if i going to import a car, is that vat is available for me?

(I'm talking about VITZ 1000cc)

you can register yourself for temporary VAT claim and re-claim the VAT amount you pay for this transaction. XXX, care to elaborate more on this?

[The Don]

Well you can re claim the vat against VAT that you pay out back to the government. But for that you have to be a VAT paying registered company which pay enough VAT to the government (else what do you claim against ?).

If you run your own company and do pay VAT (collect VAT and pay inland revenue) you can claim VAT of your own purchases against the VAT you pay the government. But for that the vehicle will need to be owned and registered under your company name.

[xXx]

Don has nicely summed up the process. For an average Joe who has a 9-5 job, biggest advantage of VAT is if you are to lease your purchase you won't be paying any interest on the VAT amount. For a 3+ million car thats almost 400k you don't have to pay any interest on.

BTW Don nice to see you around again.