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Wim says: 8 April 2022 at 13:18 Hi there :) My service-based company is VAT registered. When we bought our first car I was very disappointed to find out I may not claim back the VAT we paid on the car back, since we are not a motor dealer. Now a couple of years later we want to sell that same car. My question is do we have to add VAT to our selling price as we do on all our services? I hope not, because if we sell to a private non-VAT registered individual, then he or she will lose out on the 15% I have to add. Thanks :) |
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TaxTim says: 8 April 2022 at 14:36 A: Unfortunately, yes not a lot of small companies/ businesses know when they buy cars/ vehicles for the business that you cannot claim VAT on “motor cars”. The VAT Act stipulates what can be included and what should be excluded in the definition of “motor cars”. Therefore, if you couldn't claim the input VAT on the motor car when you purchased it, then you don't add VAT when you sell it. |
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