The law has recently changed to allow certain second-hand vehicles to be sold using the VAT margin scheme. This is where VAT is calculated on the difference between the initial purchase price and the sale price, instead of on the full sale price. In addition to this, vehicles sold under the purchase price, will be exempt in terms of VAT. There is no requirement to use the scheme, but in many situations utilizing the margin scheme to sell a second-hand vehicle could save you a considerable sum of money. However, there are a number of conditions that must be adhered to, that make the scheme difficult to use.
ACCOUNTANCY SUPPORT FOR VAT ON VEHICLE SALES
Due to all the conditions with the scheme, it is advised to seek expert assistance to determine whether or not your circumstance is eligible for the scheme. All individuals wishing to partake in the scheme must be able to prove whether the vehicle itself, and the initial purchase of the vehicle, is eligible.
There are multiple areas of VAT on vehicle sales and the margin scheme, that we can help you with at The Accountancy Solutions, including;
If you don’t know the process of eligibility for second-hand vehicles under the margin scheme, then it can be a very time-consuming process, despite the cost-saving benefits. For a much faster solution to determining if your vehicle is eligible, and completing the require documentation, our expert team of accountants can help.
Our exceptional experience in all areas of VAT, enable us to assist with all VAT on vehicle sales concerns quickly and competently. Whether you need the margins calculated, records maintained, or are unsure about your vehicles eligibility, we are always on hand to help.