[Question] VAT on a second hand light commercial vehicle

[Jan Blom]

Please advise?

A manufacturing company is selling a single cab light commercial bakkie. They bought the bakkie new, paid VAT and I would presume claimed back the VAT.

I would like to buy the bakkie from them in the name of my company. Does the transaction between us attract VAT if the value now is less than the original purchase price. Both entities are VAT registered.

[Dave A]

Being VAT registered and having claimed the input VAT on purchase, the seller must raise output VAT on the invoice.

The purchaser may claim the input VAT as long as the vehicle qualifies for the claim.

[Jan Blom]

Thank you Dave