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VAT and New Cars


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Hi I`ve just ordered and paid a £500 deposit for a KIA Picanto for my daughter.

Can someone advise me how what rate ofVAT will apply.

 

The order has gone in but the car will not be available until March.

Should I have to pay the full rate at 17.5% or 15%.

 

The salesman did the usual `I`ll go and speak to the Manager and came back saying that on this occassion they would let me have it for 15% as long as I paid before 1st january! I laughed and said that`s very magnanimous of them for `stating the bleeding obvious`but that only a fool would pay the money upfront.

 

He then suggested I pay by credit card and I would be protected!

 

I know I should have told him where to go with his car but when you`ve got the pleading face of a 19 year old sitting next to you ,her heart set on it it`s difficult.

I know the extra 2.5% isn`t a lot but I would value your opinions.:-?

IF I HAVE BEEN ANY HELP AT ALL OR JUST MADE YOU LAUGH AT MY STUPIDITY PLEASE MARK MY PERFORMANCE!

 

ALSO REMEMBER TO DONATE. EVERY LITTLE HELPS AND THE FORUMS ARE FOR YOU!;)

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We have a retail side at work and our information is that the VAT applies at the time of payment i.e. anything paid for in the new year will be subject to the full rate.

 

M

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ALL unsolicited PMs and E-mails should be posted up - Not all on CAG are who they appear to be

 

 

My views are my own. If in doubt, seek professional advice. If I can help though, I will. CAG helped me!!

 

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Vehicles invoiced by dealers to customers prior to 1st January 2010

 

These vehicles will be invoiced at the 15% VAT rate

 

Vehicles invoiced by dealers to customers on or after 1st January 2010

These vehicles will be invoiced at the 17.5% VAT rate

 

What if I order my vehicle in 2009, but the vehicle will not be available until 2010?

The vehicle will be invoiced with the VAT rate at 17.5%. This will apply even if your vehicle was originally expected to be available before the end of 2009.

The only way I think you can get round the full rate of VAT being charged, is to ask them to invoice you before 31st December.

 

This is the same as what they have offered you at the moment. They have asked you to PAY for the car prior to the VAT change, what you want is the physical invoice, but you won't pay the final value until the car is delivered. i.e. it will just show as an outstanding invoice on their system, but the VAT will be declared correctly as the "tax point" for the VAT is the date of the invoice.

 

I bet they won't want to agree to this, but that is what you can ask for. :) I wouldn't be surprised if lots of the garages are doing this anyway on their side of the systems to try and make the extra percentage as a profit rather than paying it on to the VAT man

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We have a retail side at work and our information is that the VAT applies at the time of payment

 

Not strictly true. VAT applies at the "Tax Point" which is when the invoice is raised, which may or may not be when the goods are paid for

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Not strictly true. VAT applies at the "Tax Point" which is when the invoice is raised, which may or may not be when the goods are paid for

 

Accepted ;). The majority of our business is counter trade. However, for account customers that have ordered and then been invoiced prior to the christmas break, those invoices have been sent out at 15%.

 

I'm assuming that Mr Eyeballs is not an account customer and will pay for his car (and therefore, be invoiced) when it is available to collect. Although your suggestion about asking the garage to do this in advance IS worth a go IMO also. Happy christmas.

 

Hope I haven't mis-lead.

 

M

________________________________________________________________

ALL unsolicited PMs and E-mails should be posted up - Not all on CAG are who they appear to be

 

 

My views are my own. If in doubt, seek professional advice. If I can help though, I will. CAG helped me!!

 

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