Hi and please help!
I help my brother to run a 4x4 mechanics and we recently purchase a commercial Landrover for renovation. The vehicle we purchase + VAT. Its now all ready for sale. Obviously we need to sell the vehicle with VAT, but we have an interested party who would like to do a "straight swop" for a non commercial vehicle.
Our vehicle is valued at 10k + VAT. Our prospective buyers vehicle is valued at 11.5 k. What happens if we go ahead with the swop? and how does the VAT work if we then sell his vehicle??
We don't want to get caught out and since we've already claimed the VAT back on the purchase initially I wonder where this leaves us!! help!
Thanks in advance
Kate