VAT on new cars

VAT on new cars

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Hi, I am in the process of privately purchasing a brand new car. The car was preregistered in November and will be delivered on 2nd December.

Is the car subject to 15% or 17.5% tax? If 15% does that override the order that I signed in November showing 17.5%

Thanks in advance for your help.

John
John Clough

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By jacp400
02nd Dec 2008 09:12

Thanks Rebecca
Thats really appreciated.

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
01st Dec 2008 21:51

Steady on!
The date of supply is 2 December 2008 - this is called the basic tax point.

If the supplier created a taxpoint earlier than this the VAT will be charged at that date - this would be the issue (not just preparation) of a VAT invoice - I don't think this has happened from your post - or payment received. If either of these happened in November the supplier has the OPTION but not the requirement to reduce the VAT charged by raising a credit note.

I suspect your VAT is 15% - the only thing I'm not sure about is the registration before 1 December - but I don't think that matters - unless someone in the motor trade knows better than I...

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By AnonymousUser
01st Dec 2008 21:45

Your Point Is?
If you can afford a new car you can afford to pay for advice.

Please go away and study the subject of tax points.

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