I have recently traded in an old farm trailer and brought a new one through my dealer. They have given me an invoice for the new trailer, with the vat shown, and have given me a seperate "self billing invoice" for the trade in, with no vat.
I am unsure how to claim the vat in this instance?
do i work out how much vat should be on the trade in and minus this from the vat claimed on the new one?
Vat question - Self billing invoice
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Dan the Crusher Man
01442 212315
www.crusherhire.co.uk
"a satisfied customer? we should have them stuffed!"
01442 212315
www.crusherhire.co.uk
"a satisfied customer? we should have them stuffed!"
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VAT and part-exchange
If you supply goods or services and receive other goods or services in exchange (or part-exchange) you must account for VAT on the amount the customer would have paid you if they had given you money instead.
Example
The sale price (including VAT) of a camera is £120. If you sell it for cash, the price (excluding VAT) is £100 and you must account for £20 VAT.
If, instead of selling it for cash, you exchange it for £70 plus the customer's old camera, you must still account for VAT based on the sale price of £120 and the VAT due to HM Revenue & Customs (HMRC) would be £20.
More for them than you I guess
If you supply goods or services and receive other goods or services in exchange (or part-exchange) you must account for VAT on the amount the customer would have paid you if they had given you money instead.
Example
The sale price (including VAT) of a camera is £120. If you sell it for cash, the price (excluding VAT) is £100 and you must account for £20 VAT.
If, instead of selling it for cash, you exchange it for £70 plus the customer's old camera, you must still account for VAT based on the sale price of £120 and the VAT due to HM Revenue & Customs (HMRC) would be £20.
More for them than you I guess
Giles
Groundworks and Equestrian specialists, prestige new builds and sports pitches. High Peak, Cheshire, South Yorkshire area.
http://www.gbgroundworks.com
Groundworks and Equestrian specialists, prestige new builds and sports pitches. High Peak, Cheshire, South Yorkshire area.
http://www.gbgroundworks.com
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- Posts: 2504
- Joined: Thu Jul 10, 2003 10:20 pm
- Location: hemel hempstead,herts. 01442 212315
This is what i thought
They asked for my VAT number when i did the deal on the trailer, and i phoned the rep today to explain the invoices i had.
Turns out, they should have put down the VAT part of the trailer i am trading in, and they hadn't! so it is the admin office who have made a mistake.
Now it all becomes clear. Why i couldn't have just sent them a vat invoice for my trade in i don't know!
They asked for my VAT number when i did the deal on the trailer, and i phoned the rep today to explain the invoices i had.
Turns out, they should have put down the VAT part of the trailer i am trading in, and they hadn't! so it is the admin office who have made a mistake.
Now it all becomes clear. Why i couldn't have just sent them a vat invoice for my trade in i don't know!
Dan the Crusher Man
01442 212315
www.crusherhire.co.uk
"a satisfied customer? we should have them stuffed!"
01442 212315
www.crusherhire.co.uk
"a satisfied customer? we should have them stuffed!"