Used car prices and brexit. This doesn't make pretty reading. I was sent this yesterday, a comment from a VAT consultancy about the potential change to the margin scheme after Brexit, and I've grabbed the relevant section from gov.uk.
I'd like to hear from any traders here and any accountants/VAT accountants on the forum - what is the impact on Joe Average in NI. Will full VAT be applied from GB for a private sale to NI for example? Is this something a dealer will have to sort themselves and we the customer won't see it. Will it drive the costs of used cars NI significantly upward?
I'd like to hear from any traders here and any accountants/VAT accountants on the forum - what is the impact on Joe Average in NI. Will full VAT be applied from GB for a private sale to NI for example? Is this something a dealer will have to sort themselves and we the customer won't see it. Will it drive the costs of used cars NI significantly upward?
Brexit used car VAT surprise for Northern Ireland
Northern Ireland dealers who buy used car stock in mainland Great Britain will not benefit from margin schemes after 1 January 2021, meaning VAT will have to be applied. “This will be a major disincentive to buy used stock in GB” said MHA Macintyre Hudson VAT director Glyn Edwards. Prices will instantly rise 20% compared to stock purchased within Northern Ireland or cross border from the south. “It is a consequence of Brexit which no one has flagged before.”
Auto Retail Agenda: 2 November 2020 - Auto Retail Network
AUTO INDUSTRY SLAMS LOCKDOWN DECISION LLOYD PROFIT FALLS 24% IGA SHORTLISTED FOR COVID CHAMPION AWARD AUTO RETAIL LIVE TO DISCUSS LOCKDOWN FRENCH RETAILER LOCKDOWN BLOW GROUP 1’S HESTERBERG: COVID IS ‘BEST THING’ UK RETAILERS LEAD EU CONSOLIDATION STOCKWATCH – Pendragon dips after last week’s...
www.auto-retail.co.uk
gov.uk said:Margin Scheme
In line with EU rules, margin schemes involving goods, such as the second-hand margin schemes, will not usually apply for sales in Northern Ireland where the stock is purchased in Great Britain. The VAT on these sales will be subject to the normal rules and must be accounted for on the full value of the supply.
Margin schemes will remain available for sales of goods that are purchased in Northern Ireland or the EU, whether sold to customers in Northern Ireland, Great Britain or the EU.
Margin schemes will remain available for sellers in Great Britain selling stock originally purchased in Northern Ireland or Great Britain.