Charged Full 20% VAT On Used Car???

arcon5

It looks like op is referring to the 'margin' scheme. But if they pay vat on vehicles they purchase they are not eligible for this and would have to charge on the full price a 20%. So depends where they get their cars from.

Totally agree with above poster

Joe_Horner

There's no problem with them charging full VAT but there is a problem with them advertising prices that don't include it unless their normal business is selling to businesses who can claim the VAT back.

Advertising a VAT-free price to consumers is considered an unfair trading practice even if you have "+ VAT" prominently displayed because it makes it harder for consumers to compare prices. Many consumers won't be able to work out the VAT for themselves - whether the business thinks they should be able to is neither here nor there, the fact is that many won't.

TradePro

Joe_Horner wrote: »

There's no problem with them charging full VAT but there is a problem with them advertising prices that don't include it unless their normal business is selling to businesses who can claim the VAT back.

Advertising a VAT-free price to consumers is considered an unfair trading practice even if you have "+ VAT" prominently displayed because it makes it harder for consumers to compare prices. Many consumers won't be able to work out the VAT for themselves - whether the business thinks they should be able to is neither here nor there, the fact is that many won't.

I think you'll find the dealer didn't advertise the car '+ VAT'.

My understanding is that the car was advertised for £6500 or so, the OP agreed to buy it at that, but when scrutinising his invoice noticed VAT had been itemised.

Joe_Horner

TradePro wrote: »

I think you'll find the dealer didn't advertise the car '+ VAT'.

My understanding is that the car was advertised for £6500 or so, the OP agreed to buy it at that, but when scrutinising his invoice noticed VAT had been itemised.

Possibly, but I read the OP saying "the cost of the car came to £xxxx" then the dealer added..." as meaning that the headline price had been given without VAT and VAT added afterwards. Or they may have seen the breakdown on the invoice after purchace.

Either way it doesn't make any difference to the OP's situation because they agreed and paid the full price, but if that is how it was advertised it does have implications for the dealer's practices.

TradePro

Joe_Horner wrote: »

Possibly, but I read the OP saying "the cost of the car came to £xxxx" then the dealer added..." as meaning that the headline price had been given without VAT and VAT added afterwards.

Fair point, but I'm pretty sure that this is simply the OP's way of making the dealer sound 'naughty'.

If the car was advertised at the lower, 'pre VAT' figure, I doubt the OP would have agreed to pay the VAT, surely they would simply have refused to conclude the deal?

Joe_Horner

TradePro wrote: »

Fair point, but I'm pretty sure that this is simply the OP's way of making the dealer sound 'naughty'.

If the car was advertised at the lower, 'pre VAT' figure, I doubt the OP would have agreed to pay the VAT, surely they would simply have refused to conclude the deal?

You'd hope so, but there's nowt so queer as folk :beer: