need to pay vat increase ?

facade

I'd have thought an increase in VAT would be passed on.

Mobile 'phone contracts and "fixed price" energy deals pass on any increase in VAT, I'd expect any car supply contract to include the ability to pass on any VAT/duty changes applicable on the day of supply- Governments have past form of suddenly inventing £ multi-thousand taxes on new cars, any car dealer would be an idiot not to have passing them on in the contract.

tightauldgit

VAT is due at the point that the actual transaction takes place so IF a VAT increase happened then you'd be charged VAT at the higher rate.

sheramber

punto123 said:

Hi there

Can i ask please , If a vehicle has been ordered (vehicle order form with breakdown of costs and terms and conditions)  and deposit paid at the current VAT rate. If VAT is increased before, taken delivery of vehicle, would the remaining balance have to be paid at the increased new VAT rate? Or at the old VAT rate, as that is when vehicle price was agreed, then order placed and and deposit taken.?

Many thanks for your help

What doe your paperwork ( which you read and signed)  say about any increases in prices before delivery?

daveyjp

tightauldgit said:

VAT is due at the point that the actual transaction takes place so IF a VAT increase happened then you'd be charged VAT at the higher rate.

Correct.  The invoice will show the VAT rate at point of sale, but this may not mean a change in the total price paid, that will be down to Ts and Cs.

I suspect any decent sales contract would include clauses which permit a change in price to reflect changes to taxation.

Of course buy used and the problem goes away!

motorguy

As per other comments, VAT is payable at the prevailing rate on the invoice date.

If you wanted to avoid any VAT increase, you could ask them to raise an invoice now, and pay it in full.

Otherwise, expect to pay the prevailing VAT rate when you get invoiced for the car prior to handover.

user1977

All academic now anyway given there hasn't been any change to the VAT rate.