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

[CharlieT]

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)

 

You may wish to read this...............https://www.gov.uk/vat-margin-schemes/overview

[team tractor]

Any thing I sell from my workshop has to have VAT charged .

I'm vat reg'd so have to add 20% on all goods sold by me. I can't claim the vat back if it wasn't charged to myself but when I sell my vans I have to charge it and they are second hand.

[kevin55]

Ah,my first job, all those years -decades ago- Vatman for just over a year in Burton in Trent -Executive Officer no less with a warrant card and signing of The Official Secrets Act

 

As I recall the s/hand car and antique trade lobbied hard for these schemes (see Charlie T above) as they said that most of their stock was bought in from private people so they only wanted VAT on the margin not the full selling price and as the scheme example above shows (and what most get wrong) is that VAT on this margin is 1/6th not 1/5th (20%)

as it is includes the VAT

 

The schemes got expanded later

[Guest stevo]

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

This is bang on 👍

[Harnser]

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

 

Harnser

The dealer would still have to pay vat on any profit from the sale of the truck.