VAT chance

My question for you concerns the VAT increase (return to normal levels) implemented on 1st January 2010. I agreed to buy a Polo 1.6 TDI CR SE on 13 Dec from a VW dealership. This car had already been ordered (in Nov 2009) by another customer but they had cancelled. The car was still on order from VW UK and had been transferred to the dealer’s stock list instead and was due for delivery, to the dealer in January 2010. I took delivery on 25 Jan. I believe I should not have to pay the January 2010 VAT increase as the car had been on order since November 2009 and was be delivered before the end of February 2010. The dealer tells me these are VW UK’s rules but VW tell me the issue is a dealer one.

Asked on 27 March 2010 by R.A., via e-mail

Answered by Honest John
If you paid any deposit at all in December then you should have an invoice showing deposit paid and balance outstanding at 15% VAT. It does not matter when the vehicle is delivered (within reason) or what
rate of VAT the dealer pays for the car. But, of course, the dealer can still make up his own rules and so can VAG.
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