Vat on cars sales

[Jerry_Stangroom]

how does the system account for vat on second hand car sales

[QFSteve]

Hello @Jerry_Stangroom

What vat scheme are you using?

[Jerry_Stangroom]

Vat margin scheme for second hand vehivles

[QFSteve]

Hello @Jerry_Stangroom

I found the below link in the forum which may help

VAT Second Hand Margin Scheme

We have just started a second hand car seling business and the software is perfect for us. We are not currnetly VAT registered but will ahve to go VAT registered in a couple of months. We will need to go onto the Margin Scheme for second hand cars. Is there are work around for using Quickfile for the Second Hand Margin Scheme?

[Jerry_Stangroom]

Just to be clear, in the example is that assuming a purchase price of £3000 & a sales price of £3500 ?

[ian_roberts]

Sale price of £3600 - the VAT you owe is one sixth of the margin (£600).

The linked post shows how you can record your margin sales in QuickFile, by entering one line at zero VAT for your purchase price and one line at 20% VAT for your gross margin (tick the “vat inclusive” box and enter the margin amount in the rightmost total column), but QuickFile doesn’t include the inventory management features that would let it calculate the margins for you, and you can’t use the QuickFile sales invoice as the invoice you give to the customer (because margin scheme sales invoices must not itemise the VAT, and anyway you don’t want to reveal your profit margin to the customer).

You will still need other software of some kind to track your inventory and generate the customer-facing documentation.

[Jerry_Stangroom]

Thanks I think I’ve got it