Do gunshops pay VAT on the sale of s/h guns?

[EMT]

I am curious about whether or not a shop has to pay VAT when it sells a gun it has either bought second hand from a customer or taken it in part exchange.

 

The reason is that on numerous occasions and in different shops, I have witnessed the shop low balling on a price for either a px or to buy a gun and the reason being given is that when they resell the gun they have to pay the VAT.

 

If thats true then fair enough and I fully appreciate that they are a business and have to make a profit and have the gun serviced etc, etc etc but I would have thought that the VAT would have already been paid when it was sold new.

 

 

[Red-dot]

I think VAT is only on the mark up/profit but then again I may be wrong?

[webber]

I think VAT is only on the mark up/profit but then again I may be wrong?

You're not wrong.

 

webber

[zipdog]

Depends who bough the gun originally! If it was bought by a person the VAT will have been paid, therefore it will not need to be paid by the second buyer. If however a company bought the gun and the VAT was reclaimed, when the company sells the gun they will have to charge VAT.

[Lord O War]

I believe they charge VAT on the profit portion of the deal same as used cars.

[Superposed]

Yes VAT is payable on used guns if the RFD is VAT registered.

 

Its controlled under the Margin Scheme (like used Cars) % of Profit made.

[EMT]

Thanks folks. So they are not telling pork pies when they say they will have to pay the VAT. I do believe some are being economical with the truth though. They often imply they will have to pay the VAT on the sale price not on the profit.

[Red-dot]

I can't believe you are hinting that a gun dealer has been dishonest just like the one near Kirkaldy that offered me £1,700 for a £7,000 year old EELL!

[button]

I can't believe you are hinting that a gun dealer has been dishonest just like the one near Kirkaldy that offered me £1,700 for a £7,000 year old EELL!

Thats not dishonest - thats business

[Red-dot]

No, that's an insult!

[button]

No, that's an insult!

As the seller you may see it as insult but seriously no retailer is going to be close to what you would expect value wise, they have costs and buying stock in is always a risk as you have no idea when stock will move and therefore you have no idea when you will get your cash out

 

My experience is the value someone puts on something and what someone will pay is vastly different. Look how long high value guns hang around for on guntrader or on here

[Benkent]

I can't believe you are hinting that a gun dealer has been dishonest just like the one near Kirkaldy that offered me £1,700 for a £7,000 year old EELL!

That's a serious **** take.

[button]

That's a serious **** take.

How is it?

[scotslad]

I believe they charge VAT on the profit portion of the deal same as used cars.

 

Surely the VAT rules are the same for everything? Tools, pick up's, vans etc.

Not sure how the used car market works as usually hard to claim vat off a car, usually has to be a commercial vehicle and then works the same as anything else chainsaw, digger, quad etc

 

If that is the case (which i'm 99% sure it is) Vat wil be charged on a new gun but when the vat is paid it will never be charged again, the only time vat could be charged on a 2nd hand gun is if it was previously owned by a business (shooting estate/tennant) who is vat registered and has claimed it back.

So even if keeper owned/bought unless he claimed the vat back the're would be no vat to pay

[sishyplops]

If a dealer trades in second hand gun for £1000 then puts £100 profit on he sells the gun for £1120 which includes vat on the margin

[rimfire4969]

No, that's an insult!

Your right, I would of given you £2000.

[ips]

That's a serious **** take.

Plus 1 👍

[scotslad]

If a dealer trades in second hand gun for £1000 then puts £100 profit on he sells the gun for £1120 which includes vat on the margin

 

If the above is true why do garages sell pick ups with no vat?

Surely they should be adding vat to the profit margin.

 

Vat is usually paid when new so doesn't need to be paid twice, if vat was due (because owned by a business) on a 1000 gun the gun would be 1200 (or 1320 if 100 profit) quid

[sishyplops]

The vat is only on the margin which is £100 as the gun is secondhand , if it were new it would be £1000 plus £100 margin + vat on all of it

 

Pick ups are commercial vehicles and as they are bought by companies that claim the vat back they have not had vat paid on them, it's only when s non vat registered person buys a pick up dies the vat get paid (as it is not claimed back )

When a garage sells a pick up classed as no vat it is because it was first bought by someone not vat registered so the vat has been paid

[scotslad]

Are u sure of the above sis?

Is the law on guns for vat different to other vat rules?

 

If i sold either my pick up, van or quad there would be No vat to pay as i have paid it, but even if i traded those in to a dealership there would still be no vat to pay, even on his mark up profits as it has already been paid.

The dealer will pay tax on his profit but not vat (if its already been paid)

[Westley]

I can't believe you are hinting that a gun dealer has been dishonest just like the one near Kirkaldy that offered me £1,700 for a £7,000 year old EELL!

 

That is probably what he pays for them NEW !

[zipdog]

Are u sure of the above sis?

Is the law on guns for vat different to other vat rules?

 

If i sold either my pick up, van or quad there would be No vat to pay as i have paid it, but even if i traded those in to a dealership there would still be no vat to pay, even on his mark up profits as it has already been paid.

The dealer will pay tax on his profit but not vat (if its already been paid)

 

 

This is confusing me too!

[Red-dot]

 

That is probably what he pays for them NEW !

Don't be stupid. They ALL say there are very small margins in shotguns.

[sishyplops]

Are u sure of the above sis?

Is the law on guns for vat different to other vat rules?

 

If i sold either my pick up, van or quad there would be No vat to pay as i have paid it, but even if i traded those in to a dealership there would still be no vat to pay, even on his mark up profits as it has already been paid.

The dealer will pay tax on his profit but not vat (if its already been paid)

 

 

Yes i am sure as i was vat registered, the vat applies to the margin as it is classed as a new sale (the the pick up just the margin)

 

if a builder quoted you labour at £100 + vat to fit a second hand door you would pay £120 (plus what he wanted for the door but there would be no vat on the door)

[team tractor]

 

 

Yes i am sure as i was vat registered, the vat applies to the margin as it is classed as a new sale (the the pick up just the margin)

 

if a builder quoted you labour at £100 + vat to fit a second hand door you would pay £120 (plus what he wanted for the door but there would be no vat on the door)

Edited May 17, 2017 by team tractor