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 VAT qualifying, it’s important to remember that 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 our team prior to your vehicle entering the auction.

If you are unable to produce these documents, we cannot list your vehicle as VAT-qualifying, and the buyer will not be able to pay you VAT on top of the purchase price, and this cannot be reversed if the documentation is located/produced later.