Is VAT applicable if we are trading in used spare parts of cars?
Is VAT applicable if we are trading in used spare parts of cars?
Replies
Vat Registration is not linked to business activity. It is based on taxable supplies and the threshold limit. Accordingly, business dealing in used spare parts must register if its turnover exceeds the threshold limit.
2 LikeYes, it is subject to VAT. Dealing in second hand car though has separate provisions if VAT was already paid while buying car. However, for parts its difficult and not advisable to apply such provisions. Hence, would recommend to charge VAT.
0 LikeAdditionally the definition of goods does not distinguish between new and used goods, hence the supply should be taxable. it is assumed that other conditions are met.
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