UCS Stockport. One owner VAT Qualifying cars for sale.
Our stock is primarily one owner cars which are not just the most desirable in the used car market, many of our cars are VAT Qualifying. This means that the cars we sell have a VAT content within the price. For example, if you buy a car at £12,000 there is £2,000 of VAT that could be reclaimed if you export the car or are VAT registered and using it for business use.
What does VAT Qualifying mean?
A car is defined as VAT Qualifying if it is either a brand new car or has been owned by a business and used for business purposes for its entire lifetime.
What is a margin car?
Any car or vehicle which has been used privately at any point in its lifetime becomes non-VAT Qualifying (margin). The VAT is no longer reclaimable and the VAT Qualifying status cannot be reinstated.
Benefits of VAT qualifying cars for UK customers
UK buyers who are VAT registered can reclaim the 20% VAT of the sales price if they are buying a VAT qualified car for business purposes.
Do all new cars start as VAT qualifying?
All new cars start VAT Qualifying. If cars are registered to a UK VAT registered business they remain VAT Qualifying. However, if they are registered to a private individual or a non VAT registered business, they become non-VAT Qualifying (Margin).
Is there VAT on used cars or second hand cars?
A used or second hand car will be VAT Qualifying if it has remained registered to a VAT registered businesses throughout and used for business throughout its lifetime. It becomes non-VAT Qualifying once it is owned by a person, company or trader who is not VAT registered.
If you are buying an ex-lease car from a business there is a very good chance it will be VAT Qualifying because it was purchased for business use (a company car).
Savings for (non EU) export customers buying VAT qualifying cars
Buying a VAT Qualifying car for export will make a big saving and thus is the most desirable for car exporters.
Overseas buyers can save 20% VAT off the purchase price of a VAT Qualified car. This is because when a VAT Qualifying car is exported permanently outside the EU, the VAT can be reclaimed from HMRC.