VAT on new Volkswagen

TonyB2108

I am ordering a new VW Passat today and have been told that I will have to pay 17.5% VAT because deilvery will be next year 10-12 weeks. Is there any way of avoiding the VAT increase?

Anihilator

In all likiehood no

The VAT date is normally the invoice date. If you can get the dealer to give you an invoice for payment in full dated today then you could pay it at 15% however the dealer probably wont want to do this as once you pay then it becomes a lot more harder for either party to vary the contract and given VW could easily delay it further or change specs etc they may not want to take this risk.

You also have the risk that they go bust or similar. Tbh I doubt you will pay any more anyway. I always thought dealers advertised inclusive of VAT. are you sure the dealer isnt trying a fast one.

Stuball_2

The invoice or payment date will create the tax point. If you pay in full before 31/12/09 for goods ordered and delivered within 6 months then 15% VAT will apply.