Generally, used vehicles (e.g. cars) sell without VAT added to the price, since this was paid by the vehicle’s first owner when they bought it.
However, most vans are bought for business use by VAT-registered businesses or sole traders, and this makes them ‘VAT-qualifying’. When a business or sole trader buys a ‘VAT-qualifying’ vehicle, they can claim back the VAT paid on the purchase from HMRC in their annual VAT return, reducing their overall annual VAT liability for the year.
When a business or sole trader sells their VAT-qualifying van, they can sell it to a buyer for business use, with the same VAT benefit available, as long as they provide their VAT registration number and a VAT invoice (showing the sale price, plus the VAT at 20%) so the buyer can claim the VAT, the same way the seller did.
This means the vehicle can be sold many times without buyers ever paying VAT on it, until such time as it is bought for non-commercial use. At this point, the commercial seller of the vehicle will need to pay 20% of their sale price back to HMRC to settle the vehicle’s VAT. From the buyer’s perspective, this will just mean that the price of the vehicle is slightly higher.
If you’re selling your van to a professional dealer who is used to buying vans, they will be able to help with the process.