I hope these extra 400 people know what the hell they are doing... its not an Ikea Flat Pack you know...
Bloody cars will all be falling apart over Xmas
General Vat increase
- Thread starter stinkyparp
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General Vat increase
Bloody cars will all be falling apart over Xmas
i hope these extra 400 people know what the hell they are doing... Its not an ikea flat pack you know...
Bloody cars will all be falling apart over xmas :d
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stinkyparp
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Sorry for the resurrection of this post, but i wondered if any of you guys who ordered in aug/sept and are still waiting for your 500, which lets be honest we are now unlikely to see this year (two week dealer workshop shutdown) saw the working lunch programme on bbc2 last week about the vat rise?
Apparently if the dealer produces an invoice in 2009, which i can't see why they couldn't, we would be able to get the car at 15% vat, which on mine is £288! Just wondered if anyone had spoken to their dealer about this?
Apparently if the dealer produces an invoice in 2009, which i can't see why they couldn't, we would be able to get the car at 15% vat, which on mine is £288! Just wondered if anyone had spoken to their dealer about this?
yes, the vat is charged at the rate prevailing at the date of the invoice. It's why we didn't re-issue all our invoices when the rate went down to 15%. In my line of work we are invoicing vat registered businesses so it gets claimed back anyway but of course different for us non VAT registered individuals when we are buying something.
In theory if the invoice was raised before the increase then it would be at 15%, but one of the dangers of raising invoices early is that as a business you have to pay the VAT to the revenue at your next due date - regardless of whether you've received the money or not.
It could also be different with cars - someone here wrote that the revenue invoice the VAT when the car arrives - this would be a bit different to how VAT works for the rest of us businesses - the revenue invoice us for what we tell them based on our invoices raised (and less what we claim back) - but cars are also subject to car tax so perhaps the revenue do invoice.
However it works, if the invoice is raised after the end of year the VAT will be 17.5% and it will be down to the purchaser unless your dealer is so kind hearted they agree to pay it for you - which I doubt.
In theory if the invoice was raised before the increase then it would be at 15%, but one of the dangers of raising invoices early is that as a business you have to pay the VAT to the revenue at your next due date - regardless of whether you've received the money or not.
It could also be different with cars - someone here wrote that the revenue invoice the VAT when the car arrives - this would be a bit different to how VAT works for the rest of us businesses - the revenue invoice us for what we tell them based on our invoices raised (and less what we claim back) - but cars are also subject to car tax so perhaps the revenue do invoice.
However it works, if the invoice is raised after the end of year the VAT will be 17.5% and it will be down to the purchaser unless your dealer is so kind hearted they agree to pay it for you - which I doubt.
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stinkyparp
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Yes, thats what i thought. In my mind as long as the customer agrees to pay the vat up front when the invoice is created, everyones happy. The dealer is vat registered so it won't matter to them if they get the invoice in january and pay 17.5% vat as they claim it back anyway!
flyingscot
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I'll be a pendant and point out that it is actually only a 2.1% saving- the 2.5% cut is making you think you get more than you are- clever I guess! O.K only 0.4% but on a car purchase that can be a hundred quid.
I guess you mean Pedant, lol. unless of course you mean you are a swinger, in which case you are probably in the wrong section of FF.
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stinkyparp
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Basically the VAT Tax Point is the earlier of payment or delivery.
I personally think it would be highly unwise to actually pay for a car before delivery, and in any case the revenue could still challenge the arrangement, so I doubt any garage would entertain the idea of manipulating the dates, particularly since they don't stand to gain anything from it.
I personally think it would be highly unwise to actually pay for a car before delivery, and in any case the revenue could still challenge the arrangement, so I doubt any garage would entertain the idea of manipulating the dates, particularly since they don't stand to gain anything from it.
Good customer service though.
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stinkyparp
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But All the customer would have to pay is vat, not the whole car price. The dealer would only have to pay the vat too and as long as the car has a chassis number and is ordered i can't see a problem. It's no different than ordering parts which go onto back order until january.
flyingscot
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I guess you mean Pedant, lol. unless of course you mean you are a swinger, in which case you are probably in the wrong section of FF.
No I really am a pendant - a light from the ceiling. I blame my previous light based employment....
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But heres the crunch - will any business willingly increase their chances of an onerous and costly VAT inspection?
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stinkyparp
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Well i guess it depends on how much they value customer service, vw for example are offering 2.5% discount on cars ordered before november and delivered before feb 2010.
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But that is completely different, a promotion to attract new business the cost offset against VWs no doubt healthy margins. Offering a discount to existing orders - which the customer is legally obliged to complete anyway - and risking a VAT visit into the deal is completely unrealistic. IMO of course.
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stinkyparp
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So you don't think 2.5% is worth the customer service? I know in the motorcycle trade there would be no question we would pay it, for customers who ordered and through no fault of their own do not receive the car in 2009, for me it just adds to the shock of what it's like to buy a new car! The interesting thing is the inland revenue will allow it, as long as the invoice is raised in before 2009.
It's not like the rise was sprung on people though, everyone knew it was going to happen and Fiat don't guarantee delivery on a specific date or before a specific date.
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stinkyparp
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True, But it was never mentioned at purchase and i was quoted a 12 week delivery, i know nothing is guaranteed, but 12 weeks to me seems like a reasonably long length of time to me. This will only affect a small number of people who lets face it ordered with a very considerable distance to 2010 and may not see their cars this year, i'm again struggling to grasp why for the sake of 2.5% the dealer wouldn't pay it?
Because it's money. Do you honestly think a dealer is going to take a ~£200 hit on their margins just because?
By all means offer to pay the VAT to the dealer before it goes up but don't expect the dealer to take the hit, that's just silly IMHO.
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stinkyparp
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Just goes to show the difference between a car dealer and a motorcycle dealer, for me it's totally blown the car buying experience, i've never bought a new car before and i'm now starting to realise why.
