Delivery after VAT hike - have to pay extra 2.5%?

Honest John Back Room » Motoring discussion
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Wed 16 Sep 2009 17:59
Delivery after VAT hike - have to pay extra 2.5%? - uksant
What happens if an order for a new car is placed before the VAT change takes place but delivery is afterwards?

Are buyers forced to pay an extra 2.5% in VAT?

Will dealers agree to a contract which freezes the price (inv VAT) at the time of placing the order so that the VAT increase (and any manufacturer price increase, come to that) has no impact?
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Wed 16 Sep 2009 18:09
Delivery after VAT hike - have to pay extra 2.5%? - Armitage Shanks {p}
I don't know for sure but I would suppose that the VAT is paid at the rate applicable at the moment the cash changes hands; so maybe not an early deposit but on the balance paid, if it is after the date of the increase.
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Wed 16 Sep 2009 18:12
Delivery after VAT hike - have to pay extra 2.5%? - pmh3
It used to be the date on the Invoice that counts. (I do not imagine that it has changed). You do not have to pay before date the rate changes. However the retailer may want you to pay when they issue the invoice - (they will lie to get your money early!). Do not pay too early (or alt use a CC for the deposit for safety) just in case they go bust in the meantime.

What happens in the event of a manufacturers price increase I do not know.

I did exactly this in 1979 when VAT increased to 15%!
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Wed 16 Sep 2009 18:31
Delivery after VAT hike - have to pay extra 2.5%? - ijws15
VAT is levied at the rate applicable on the DATE ON THE INVOICE.

Get them to raise the invoice earlier than the collection date but for payment on or before the collection date.

They will say they cannot do that - but they can if they want to.
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Wed 16 Sep 2009 21:30
Delivery after VAT hike - have to pay extra 2.5%? - Bill Payer
Get them to raise the invoice earlier than the collection date but for payment on
or before the collection date.

I can't believe HMRC would wear that. Surely the date is the date of supply?

It must also be a bit dodgy from an accounting rules point of view?

It wouldn't even work with a pro-forma invoice as they're not acceptable as tax invoices.
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Wed 16 Sep 2009 21:33
Delivery after VAT hike - have to pay extra 2.5%? - Manatee
They haven't said what it's going up to yet, have they?

My tax colleagues were speculating on 20%.
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