What does it mean if my vehicle is 'VAT qualifying'?

A vehicle is ‘VAT qualifying’ when it has been purchased for solely commercial use by a VAT-registered individual or company. Following the vehicle’s purchase, the individual or company will have claimed the 20% Value-Added Tax back from HMRC (Her Majesty’s Revenue and Customs).

The VAT-registered seller - and all previous owners - must claim back the VAT following each subsequent sale of the vehicle. If any owner fails to reclaim the VAT, the chain is broken, and the vehicle will no longer be designated ‘VAT qualifying’.

If you are VAT-registered and your vehicle is a VAT qualifying Commercial Vehicle, Van, Truck or Pick up, it’s important to remember that Motorway’s estimated sale price will exclude VAT.

If you are VAT-registered and your vehicle is a VAT qualifying car, Motorway’s estimated sale price will include VAT.

You can verify that you are VAT-registered, and that your vehicle is VAT qualifying, by providing the VAT number and the VAT invoice for your vehicle to the buyer either before or during collection. If you are unable to produce these documents, the buyer will be unable to confirm your vehicle’s status as VAT qualifying and will not be able to pay you VAT on top of the purchase price.