To my understanding, VAT on motor vehicles only apply to unregistered vehicles. Can some one please confirm?
Scenario is as follows:
Unregistered Vehicle was purchased by a company; part of the VAT payment was claimed as input VAT (I think it was 50% of 12%; even though 20% VAT is charged you can not claim 20% as input VAT; even claiming 12% is if it is 100% commercial use or somesuch).
After some years, company sells vehicle.
As a VAT registered company, should they charge VAT? Or is it that registered cars are exempt from VAT?
I think none of these car sales could operate if VAT applied for sale of registered vehicles (they can't ALL be committing VAT fraud!!) but would appreciate confirmation because the auditors are saying VAT should be deducted :S
Question
Sifaan
Hi!
To my understanding, VAT on motor vehicles only apply to unregistered vehicles. Can some one please confirm?
Scenario is as follows:
Unregistered Vehicle was purchased by a company; part of the VAT payment was claimed as input VAT (I think it was 50% of 12%; even though 20% VAT is charged you can not claim 20% as input VAT; even claiming 12% is if it is 100% commercial use or somesuch).
After some years, company sells vehicle.
As a VAT registered company, should they charge VAT? Or is it that registered cars are exempt from VAT?
I think none of these car sales could operate if VAT applied for sale of registered vehicles (they can't ALL be committing VAT fraud!!) but would appreciate confirmation because the auditors are saying VAT should be deducted :S
Thanks!
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