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I'm buying a van, but I'm not VAT-registered...
I am planning to purchase a new crewcab but as I am not VAT registered I will not be claiming back the vat. My question is on future trade in value ‘ will a dealer offer me a trade in value including or excluding the vat I paid. Essentially will I loose 23% of the price I paid when I go to trade in the future
Our answer:
Hi Alan,
I'm afraid you will lose out, yes. If a dealer buys a van from a VAT-registered business it gets a VAT invoice and it can claim back the VAT, but in your case it won't be able to do that so it will offer you less for the van. A contact in the trade said you'd be unlikely to lose the full 23 per cent, and that the older the van is the less the penalty will be in any case.
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