Call for Assistance: 02033 259 341
Spondoo Accounting
Call for Assistance: 02033 259 341
Spondoo Accounting

I'm selling assets from my company; do I need to charge VAT? Cars, Vans, Furniture, Computers & Tools

July 26, 2023

If you are selling assets owned by your VAT registered business, the general rules on whether or not to charge VAT are as follows:

  1. Reclaimed VAT on the initial purchase: If you reclaimed VAT on the assets’ initial purchase, you will almost always need to charge VAT on the onward sale.
  2. Brand new goods from a non-VAT registered supplier: If you acquired brand new goods from a supplier who is not VAT registered, you will almost always need to charge VAT on the onward sale.
  3. Second-hand goods using the Margin Scheme: If you acquired second-hand goods from a VAT registered supplier using the Margin Scheme, you usually do not need to charge VAT on the onward sale.
  4. Vehicles and components: For vehicles and components, you might not have reclaimed VAT on the initial purchase due to personal use restrictions. In such cases, you do not need to charge VAT on the onward sale.
  5. Purchased assets before VAT registration: If you bought the assets before you were VAT registered but would have otherwise been able to reclaim VAT, you will need to charge VAT on the onward sale. However, if the assets were purchased more than 4 years ago, you may be able to reclaim VAT on the original purchase.

For expert advice, please contact us.

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Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.
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