VAT on used van

[whitevanman]

My VAT registered limited company bought a used van from a dealer. The price was quoted +VAT. I'm looking closely at the invoice now, and it doesn't specifically list VAT added; it's shown in the 'extras' field. Also, at the bottom it says "Declaration by the seller: Input tax deduction has not been and will not be claimed by me in respect of the car sold on this invoice". It seems to me that the seller is using the VAT margin scheme on second hand cars (notice 718/1) but has misrepresented to me that VAT is chargeable. I know that the previous keeper is a VAT registered company, so the dealer shouldn't be able to use the margin scheme.

I am inclined to call the dealer and suggest that he's made a 'mistake' in the VAT treatment, and that if he sends me a proper VAT invoice no more will be said. I'd appreciate other opinions before I make that call, though.

Thanks in advance.

[pawncob]

Could be he's just used the wrong pro forma invoice. Call him and ask for a full VAT invoice and see what happens.