In an update to its main notice on how to complete and submit the VAT return electronically, HMRC have added a new section 4.7 on the second-hand motor vehicle payment scheme. This is the scheme that was introduced for traders who buy second-hand vehicles in Great Britain and then move them to either Northern Ireland or the EU for resale. The notice says that a ‘VAT-related payment’ can be claimed on the VAT return using boxes 4 (VAT reclaimed in the period) and 7 (total value of purchases) as appropriate. The notice also now links through to HMRC’s main guidance on the scheme for traders who make onward sales of the vehicles in Northern Ireland or the EU, and guidelines on how to calculate the value of a vehicle for the purposes of the scheme.
It is worth noting that the second-hand motor vehicle payment scheme is available for vehicles that were moved from Great Britain to Northern Ireland after 30 April 2023. For vehicles that were bought in Great Britain and moved to NI before 1 May 2023 the VAT second-hand margin scheme applies so long as the vehicles are resold by 30 April 2024 (this date had recently been extended from the original 31 October 2023 deadline).
In an update to its main notice on how to complete and submit the VAT return electronically, HMRC have added a new section 4.7 on the second-hand motor vehicle payment scheme. This is the scheme that was introduced for traders who buy second-hand vehicles in Great Britain and then move them to either Northern Ireland or the EU for resale. The notice says that a ‘VAT-related payment’ can be claimed on the VAT return using boxes 4 (VAT reclaimed in the period) and 7 (total value of purchases) as appropriate. The notice also now links through to HMRC’s main guidance on the scheme for traders who make onward sales of the vehicles in Northern Ireland or the EU, and guidelines on how to calculate the value of a vehicle for the purposes of the scheme.
It is worth noting that the second-hand motor vehicle payment scheme is available for vehicles that were moved from Great Britain to Northern Ireland after 30 April 2023. For vehicles that were bought in Great Britain and moved to NI before 1 May 2023 the VAT second-hand margin scheme applies so long as the vehicles are resold by 30 April 2024 (this date had recently been extended from the original 31 October 2023 deadline).
