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New VAT refund scheme outlined for NI sellers importing vehicles from UK

New VAT refund scheme outlined for NI sellers importing vehicles from UK

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The Authorities is introducing a brand new second-hand motorized vehicle export refund scheme, in October.

It is going to permit sellers to assert a refund of VAT in the event that they transfer a used motorized vehicle from Nice Britain to Northern Eire for resale.

It is going to change the VAT margin scheme, which was launched final 12 months to keep away from strain on seller margins and value will increase for patrons.

Additional info on the scheme will likely be revealed in Might 2022. For now, the Authorities’s steering may be seen right here: https://www.gov.uk/steering/prepare-for-the-second-hand-motor-vehicle-export-refund-scheme

NI retailers had been battling to discover a resolution to the post-Brexit tax difficulty, which added 20% to the price of each car imported from the mainland UK.

Automotive sellers who promote motor automobiles in Northern Eire can use the scheme in the event that they purchase automobiles in Nice Britain and transfer them to Northern Eire for resale and presently use the VAT margin scheme for these gross sales.

The scheme may also apply to those that are VAT registered within the EU and/or purchase second-hand automobiles in Nice Britain and export them to the EU for resale

When the refund scheme is launched, sellers will not have the ability to use the VAT margin scheme to account for VAT on second-hand automobiles purchased in Nice Britain after which moved to Northern Eire for resale.

The VAT on these gross sales will likely be topic to the regular guidelines for shifting items between Nice Britain and Northern Eire. When the car is bought, sellers will account for VAT on the total worth of the availability.

The refund scheme will permit them to assert a refund of VAT on the car that was bought when it’s moved from Nice Britain to Northern Eire, so long as there may be an intention to resell it.

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