VAT

[bishgam]

Has anyone who has just ordered managed to only pay 15% VAT even though the car is being picked up in the new year. I'm just about ready to buy one but don't want to give the government an extra 2.5%

[Kev]

You pay the tax rate on the day of delivery when you pay the balance. You'll have to try a bit of sweet talking to the dealer to see if they'll let you pay 15% instead of whatever it goes back up to (might be more than it was before).

[kianok]

You could always pay the invoice in December. Just make sure your dealer isnt going to go bust first!

The rate come Jan will be 17.5%, but who knows after the March budget.

[Scirocco Bhoy]

I was talking to my dad about this today.

My car is due for delivery in November sometime.

I am ordering it from a dealership in N.Ireland (where my parents live) and as such 2010 cars are registered from 1st Jan.

With the new VAT rate coming in January is there any issue with paying the balance in Nov/Dec but waiting until January to get it registered?

I'm wondering if it's worth getting it registered as 2010 or just paying and registering it before end of 2009 at 15% VAT?

[kianok]

Wouldnt have thought that was a problem at all. People used to wait until August 1st before registering them so cant see why not.

[leanneq]

Don't think thats what he means - the dealers are fine about you waiting to register it. I'm guessing you mean is the VAT calculated on date of registration? I'm wondering the same to be honest.

[Spiney]

Hope this helps....

VAT is calculated at the rate applying at the 'Tax Point' The 'Tax Point' is (usually) the earlier of the date that payment is made or the goods are delivered.

So, if you pay whilst the 15% rate applies, 15% is what you'll pay!

The (usually) above means that the Invoice date, if it's before the delivery date may be able to be deemed the Tax Point, so if you can get your dealer to issue an invoice during the 15% period you might get away with it, even if you don't pay, or see the car for ages.

I get involved in VAT for work but am no expert, this is just offered in case it helps!

[ashley1407]

I ordered mine a couple of days ago and because my dealer had an allocated build slot (due to a cancellation), they said that they VW would cover the VAT change. Got it in writing as well so all good!

If you are going to order one, try to do it this month and you may get lucky.

[lancs_lad]

I ordered mine a couple of days ago and because my dealer had an allocated build slot (due to a cancellation), they said that they VW would cover the VAT change. Got it in writing as well so all good!

If you are going to order one, try to do it this month and you may get lucky.

I've been searching for one and found that some dealers are waiving the vat increase and some aren't. My local dealer in Sheffield (Gilders) offered me a £500 discount and promised that they would absorb the vat increase as well as VW have a "fund". Other dealers I've spoken to refuse to discount the car at all and are also charging the vat increase.

I've eventually gone for a discount of 8% with an internet broker and will take a hit with the vat as it works out to be the cheapest option by about £1000. Don't have a build date yet as I need to finalise the deal but seem to be looking at March.

[rollopre]

Hope this helps....

VAT is calculated at the rate applying at the 'Tax Point' The 'Tax Point' is (usually) the earlier of the date that payment is made or the goods are delivered.

So, if you pay whilst the 15% rate applies, 15% is what you'll pay!

The (usually) above means that the Invoice date, if it's before the delivery date may be able to be deemed the Tax Point, so if you can get your dealer to issue an invoice during the 15% period you might get away with it, even if you don't pay, or see the car for ages.

I get involved in VAT for work but am no expert, this is just offered in case it helps!

My take on the question of a delivery taking place (or likely to take place) after 01/01/10.
If you are willing to take a chance on your dealer not going bust before delivery, then either pay the balance or get him to raise an invoice for it before 01/01/1.

For the official HMRC view follow this link (and look at 3.3):
http://www.hmrc.gov.uk/vat/forms-rates/ ... .pdf#sec26" onclick="window.open(this.href);return false;

[trix]

i think they have to have the chassis number & reg plate before they can raise on invoice

S

[iAmbu]

i think they have to have the chassis number & reg plate before they can raise on invoice

S

Correct