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  • RE: VAT on items sold to original vendor

    Thanks again for your help. I was sure I was correct, but sometimes you just need a second opinion just in case you've missed something. The dealer is being very unhelpful and the client is new selling the plant elsewhere to avoid any potential VAT issues, so the problem has, thankfully, gone away -phew!
  • RE: VAT on items sold to original vendor

    Hi Jason, really appreciate your response. I completely concur with your explanation, that's exactly how I've viewed it but wondered if I was missing something. The original vendor is stating that, "as VAT has already been reclaimed and they cannot do it more than once". They agree that if my client were selling it to anyone else, then VAT would apply, but not back to them. Original seller is not issuing a credit note, it's a new sales invoice showing the plant taken in part exchange with No VAT. Original invoice shows the plant as new, but the invoice showing the part exchange shows the item as used. I have asked them to provide us with the VAT notice covering their handling of the situation. Will be interesting to see how this one pans out! Thanks again for your help. Sarah
  • VAT on items sold to original vendor

    I have a client who purchased an item of plant and machinery, paying VAT on that purchase. It turned out not to be sufficient for their needs, so they are selling it back to the original vendor and purchasing something else. The vendor is saying that VAT is not applicable on the sale from my client back to them. I may be having a mental block, but I cannot fathom their reasoning, can anyone shed any light on this and tell me what I'm missing?! Thanks :-)