VAT on ex-display appliances

[JAG1971]

Hello! A VAT registered business purchases appliances direct from the manufacturer to install into their kitchen showroom displays. After a period of time, the business decides to sell those display appliances to make room for new models of appliances. When selling the ex-display appliances, should they charge their customer the standard rate of VAT? TIA

[Trevor S]

Yes, the business must charge VAT, calculated on the amount that they sell the appliances for.  Obviously this may well be less than the VAT they recovered when they bought the appliances from the manufacturers.

[VAT-adviser]

Just to add that if you require more detailed paid advice, please do not hesitate to contact me here – simply PM on messages.

[Author]

Posts