Update to VAT Notice 700/12: New Section Added for Second-Hand Motor Vehicle Payment Scheme

• HMRC has added a new section 4.7 on the second-hand motor vehicle payment scheme in its update to VAT notice 700/12.
• Traders who buy second-hand vehicles in Great Britain and move them to Northern Ireland or the EU for resale can claim a ‘VAT-related payment’ on the VAT return.
• The payment can be claimed using boxes 4 and 7 on the VAT return.
• The notice now links to HMRC’s main guidance on the scheme for traders who make onward sales of the vehicles in Northern Ireland or the EU.
• Guidelines on how to calculate the value of a vehicle for the purposes of the scheme are also provided.
• The second-hand motor vehicle payment scheme is available for vehicles moved from Great Britain to Northern Ireland after 30 April 2023.
• For vehicles bought in Great Britain and moved to NI before 1 May 2023, the VAT second-hand margin scheme applies if the vehicles are resold by 30 April 2024.

Source: taxjournal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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