Help! VAT confusion rate on new car

lg123

Hi,

I ordered a new car in Novemeber to take advantage of both the scrappage scheme and the 15% VAT rate. I handed my old car in and I paid the £250 deposit in November.

I have a "vehicle order form", on this form it details every item of the car (accessories, delivery etc.) including VAT at 15%. On this signed form (by myself and the seller) it has written "I/we accept and confirm the above order and undertake to supply the said goods upon and subject to the terms and conditions referred to herein." and "This document contains the terms of a contract. Sign it if you want to be legally bound by them. Nothing herein contained is intended to, nor will it, affect a consumer's statutory rights under the sale of goods act 1979 or the unfair contract terms 1977"

I now cannot get a straight answer out of our dealer whether we are paying an extra 2.5% on the outstanding balance or not. He says we do but then quotes an outstanding balance of a few pounds of what it would be with a 15% VAT bill. He's very slow at responding and the one bit of info I did manage to off him via email isn't detailed and wouldn't stand up to scrutinary.

I am on a very strict budget and cannot afford to find the extra 2.5% come next month and the timing of this car has been carefully planned which leaves me in a predicament.

Does anyone know where I legally stand?

Thanks,

L

P.S. this form does not say "invoice" on it, but neither does it say "this is not a VAT invoice". I don't know if that helps my case at all?

xocbc

My understanding is that if you paid for the car IN FULL before 31 December you would pay 15%, any balance outstanding after 1 January is charged at 17.5%

Anihilator

An order form isnt an invoice whether it states so or not.

The VAT rate is the rate at the invoice date so will definitly be 17.5 % and probably on the full amount as the deposit won't be seperately invoiced I am guessing.

The question will be is whether the dealer covers it.

If your order form states the price as an on the road or total price then the VAT increase comes out of their end, if its a plus VAT figure then its you unless they agree otherwise.

I suspect your likely to be the one liable for VAT here. You may be able to cancel though depending on the terms. Most order forms will list these on the back.

lg123

Thanks so much. :T

So for the deposit of £250 I can say that VAT was paid in that at 15%?

As I dropped my car off in November (payment can also be in the form of part exchange according to a website I just read?), would this mean I could also claim my subsidarys at 15%? (goverment £1000 and manufacturer £1000 subsidy off the balance?)

I would assume these would apply after tax (what with the government wanting to get their bit)? Or perhaps they would split this, governement applys it after tax and manufacturer before?

(the signed agreement definately states "VAT at 15%" in black and white... )

L

Anihilator

No you couldnt unless they issued seperate invoices relating to this. If they didnt I would assume they will be involved in the final invoice and any VAT calculation based on this would be at 17.5%.

What the agreement says re rate isnt really relevent as dealers dont set VAT rates. You need to read the agreement and terms.

Can you name the dealer? might be able to find the info online.

If I was you I would be expecting to pay the full 17.5 % on the full balance I am afraid.