Originally Posted by the bandit
Only a guess but it may work on th e same priniple as coaches
They are zero rated to the customer however we can claim all VAT back on purchase, repairs and fuel. When you come to sell you have to pay the Vat back on selling price
Sorry I may be a bit slow on this, But if a trader was vat registered and brought this boat, they would want to claim the vat back, the way I see it, they can't. so is the boat £25,000 + vat or is it £29,375 as if it were a private sale but the RNLI have to repay there vat back? can the boat be advertised at a price + vat if they are not registered. If we did it as a private seller, would it not be called fraud?
I have know of this situation before on a RNLI purchase, thats why I am keen to find the answer.