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Quick VAT question
If I'd ordered a new car two months ago, and only paid a deposit. Will the outstanding amount now be paid at 15% Vat or the original 17.5%?
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The agreement will state VAT at 17.5%.
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These notes from HMG may help.
3.2.1 Goods provided after 1 December I issued a VAT invoice to my customer before 1 December 2008 for a supply of goods (e.g. a bicycle) that I provide during December 2008. I have charged VAT at 17.5%. Can I now charge VAT on this supply at 15% instead? Yes. Under the special rules (see paragraph 3.1) you may decide to charge the new standard rate of VAT. If you decide to use the special rule you must issue a credit note to your customer to adjust the amount of VAT charged on any original VAT invoice you issued. This will reduce the amount of VAT you are liable to account for on the sale. If your customer is VAT registered this will reduce the amount of VAT she can recover on the purchase. There is no requirement to issue a credit note if you had not previously issued an invoice. dl |
As David says, as long as the supply takes place after 01/12/08 the VAT may be reduced. For VAT registered consumption it makes no difference as the higher value is just reclaimed as input tax, however for a normal consumer it does make a difference.
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Brilliant, thanks. No invoice as yet, only an order form and reciept for the deposit.
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If they try to charge at the high level threaten to cancel and buy from a competetor at the new VAT rate.
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The taxpoint date will be after 1/12/08. The taxpoint date will be the date of delivery and not the date of the deposit so they should charge you 15%.
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Do remember it's no skin off their nose. It won't cost the dealer any more, just a tiny bit of extra paperwork, if that :)
Nice Uncle Alistair is paying :thumb: |
Originally Posted by Kev_turbo
(Post 8314556)
If they try to charge at the high level threaten to cancel and buy from a competetor at the new VAT rate.
Wrong attitude. In the current market, they'd probably let you. They can keep your deposit and still sell the car. I bet the deposit is higher than the saving of 2.5%! My advice would be to ring said dealer, and ask your salesman for the new fuigure now that the VAT has been reduced. It's no skin of his nose, he won't get paid anymore or any less! |
If they haven't already raised the invoice against you then they will be breaking the law by issuing it with 17.5% from today onwards.
Just insist they issue with 15%, they almost certainly will want to do this anyway as any VAT inspection would spot this and that would cause them grief, and they won't want trouble from HMRC. |
And, if my reading of the notes I posted is correct, your can get back the 2.5% extra VAT you paid with the deposit because the goods hadn't actually been supplied at that time. dl
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yer delivered from today onwards you'll get 15% vat. like others have said it makes no diffrence to the dealer.
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sorry to be a dunce, it looks like it's already been answered but, i ordered a sofa a month ago but it won't be delivered until 10th dec and the invoice payment won't be taken until shortly before the delivery. so will the amount taken from my bank be less than the invoice states? :confused:
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No, once an invoice is created so is the tax point. Even though payment won't take place till after the VAT rate changes, the invoice was presumably created when you agreed to buy.
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Originally Posted by MJW
(Post 8315785)
No, once an invoice is created so is the tax point. Even though payment won't take place till after the VAT rate changes, the invoice was presumably created when you agreed to buy.
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Another thick question,,,,,How does this affect quotes? I did a quote for someone abouts 2 weeks ago,the price was including VAT,which they accepted. We did the job today,the bill was for the total amount quoted,and this is where they questioned VAT,so was wondering what we should be doing?
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You Invoice at the appropriate VAT rate i.e. 15%
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