Gross (VAT qualifying) vs Gross (non-VAT qualifying)

[kp64zl]

I'm looking at vans on the VW used vehicles site (Das Welt Auto) and notice that some used vans are listed as VAT qualifying and others non-VAT qualifying.

What does this mean? I'm a private buyer for leisure purposes
Why is there a difference between vans/dealers?

 

[5i1ver8ack]

Unless you are in a position to reclaim VAT on the purchase, it makes no difference at all.

A VAT registered business making a business-related purchase would be able to claim back the VAT on a VAT qualifying van.

 

[5i1ver8ack]

The distinction relates to the history of the van. A VAT qualifying van will have been leased in a previous life.

 

[5i1ver8ack]

Or used in a VAT-registered business.

 

[motacyclist]

Or used in a VAT-registered business.

Or an ex demo.

 

[mccp]

The reason why they mention VAT at all is because most VW vans are designed for, and sold to businesses. If you are a VAT registered business, you will want to buy a VAT qualifying van so that you don't pay the VAT. If it does not qualify, it will cost the business 20% extra. If the business is not VAT registered, or it's a private sale, it makes no difference, you have to pay the VAT.

VW lump the California in with the rest of their vans, so you get VAT issue, which is a bit silly because virtually all Cali sales must be private, with a few going to hire businesses. That's also why we have to buy from and get the Cali serviced at VW van dealers.

 

[2into1]

You should note that sometimes the differences outlined above mean that the odd Cali gets listed at a price which excludes VAT.....so if you see an obvious bargain, do check they've not cocked up their data entry, and establish what the inclusive price is.
This is a different issue to the 'vat qualifying' element discussed, but the folks who do the listings for the dealers spend all day listing commercial (panel) vans where they enter the price without VAT, so they can sometimes do the same for Cali's, in error.

 

[Ting Tong]

2 identical used Calis both are £48,000 - one is vat qualifying one is not. It makes no difference to you which one you buy. However a vat registered entity can reclaim or offset the £8,000 vat, so they are better off buying the vat qualifying one.

When they sell or px it in 5 years for £42,000 It’s a vat qualifying sale and the £7,000 vat is due by the seller to HMRC. If px’d to VW for example, it then goes back on Das Welt as VAT qualifying and the process carries on.

Once a new or used Cali is purchased by a non vat registered entity, no vat dealings can ever be carried out in respect of the capital in that vehicle down the line: that’s why most on Das Welt are not vat qualifying.