Selling old computers/VAT

[DrCheese]

Hi there,

 

I've got around 90 computers that according to ebay I can get 30 a unit for. Where do I stand on doing this from a VAT POV, as naturally being a school we didn't pay this when we bought the units. If it's not cost effective I won't bother, but our budgets are so tight now every bit helps!

[NB9457]

Not sure how legal it is, but I know some schools 'give away' their machines to staff/governers/maybe parents, in exchange for a 'donation' to the school.

[achedgy]

My understanding is that you would have to charge vat.. So if you sold for £30 a unit, 20% would need to be deducted from your vat reclaim. Also, hear mutterings as regards to warranty as you would essentially be a business seller. Might be worth chatting to some of the recycling firms, sometimes they will pay if enough kit and of reasonable quality..

[GeekyPete]

You don't have to offer a warranty as such but if you are not selling as a private individual then the goods must follow the sale of goods act. They must be of merchantable quality and fit for purpose. The buyers need a reasonable time to fully test and see if there are any defects, generally that's 90 days and why almost used goods come with a 90 day warranty to cover that period. make sure that any you sell are PAT tested before they are sold. If they prove to be unsafe at the point of sale and harm someone you will be responsible. PAT testing allows you to show they were safe when you sold them.

 

The computer gift and donation are separate. If one is dependant on the other it's a sale.

 

If the vendor is VAT registered they need to collect VAT on any sales they make on any goods or services that are not VAT exempt (some children's food and clothing for example). If donations are conditional and the proceeds are not entered in to the school accounts then the VAT man may indeed take an interest.

 

You will end up dealing with any returns and queries under "warranty", you will have to Prep the computers for sale, making sure that there are infringement of DPA or any digital rights/IP issues. You will need to take advice on licences. For the time and effort I find at best there is a nil return, with the risk of it costing us.

 

And after all that you still haven't got rid of them. The buyers are legally entitled to take them back to the vendor when they are finished with them for you to dispose of.

 

Send them to a recycler, get rid asap with as little hassle as possible and get on with the 1001 other things on your list.

 

Actually you probably did pay the VAT but it would have been claimed back.

Edited July 21, 2015 by GeekyPete