Ok you clever lot, I need some advice on this please.
Having just committed to purchasing a new van at the NEC Oct show, can anyone advice me what I need in writing to avoid this price increase being passed onto me next year when I take delivery of the caravan? The deal price stated at the show that it would be at 17.5 % but the paperwork sent to me doesn't state this?
Also I may recall vauguely reading somewhere on here that the full amount needs to be paid by the VAT change date. Is this correct? Doos anyone know what the legalalities of this should be?
it also depends on the date of manufacture this time as they have said if its manufactured before the 4th jan and after makes a difference even with deposit paid
Quote: Originally posted by simon23 on 01/11/2010
it also depends on the date of manufacture this time as they have said if its manufactured before the 4th jan and after makes a difference even with deposit paid
This is what I heard, but I can't for the life of me remember where!
I was told with a new car it has to be at the dealers and paid in full before the VAT rise. You can't order it, and even pay in full, if it's delivery date is after the VAT increase.
If its sold to you on that basis you should get it at the price with 17.5% VAT which I assume is a promotion where the dealer/manufacturer is absorbing the cost of the VAT rise. Its very common to have written on an invoice that prices are subject to change due to tax changes.
If the van like a car is registard before the vat increase you are ok, but even if you pay in full now and van /car etc. is delivered and registard after VAT increase you will have to pay the extra 2.5%
ok just check my vat and it is not just down to paying up front but is also down to the date of manufacture that is why they were pushing for your orders at the show but if you can get the dealer to stick to it then it is there loss and not yours but remember the total you are saving is not 2.5% you need to take the total price you are paing then deduct the vat the amount you have left is the vatable amont then re add the new 20% rate sure it is something like 2.1~% yes better in your pocket i know
Yes the 17.5% is the NEC Show Promo price. I've just had a callback and they have told me that they will redo the paperwork as there were other errors on it. The new paperwork will state a guaranteed VAT Rate of 17.5 % and no Delivery charge as stated in the NEC promo stand.
Have new issues now, apparently the sales guy that I did the deal with, has told me incorrectly that they can fit my ego mover where the paper work issued to me now states they only fit Truma, Reich and Powrtouch....also the date agreed for my collection was beginning March...which may also again be wrong, could be now as early as end Jan!!!
Why does nothing ever go smoothly?
Quote: Originally posted by David Klyne on 01/11/2010
If its sold to you on that basis you should get it at the price with 17.5% VAT which I assume is a promotion where the dealer/manufacturer is absorbing the cost of the VAT rise. Its very common to have written on an invoice that prices are subject to change due to tax changes.
I bought my new van in oct 2009 and picked it up in Feb 2010. I didn't pay for it until Feb and still got the VAT for 15%. The government stipulated that if bought before the end of the year then the VAT would be 15%. Wouldn't it be the same for this years VAT change. If you search there are threads about this from last year.
Easy option.....pay up front before the end of the year so that your VAT invoice and receipt is issued whilst the level is 17.5%.
If you are paying after January 2011 this is how the VAT Change Regulations will work...
It comes down to how the Seller deals with its VAT returns. If the Seller waits until full payment to deal with VAT, and that is after the date of the increase, then you will pay VAT at 20%. However, dealers can deal with their VAT returns on sales much earlier if they wish e.g the issue of a VAT invoice upon payment of a deposit (before the VAT increase). So they can save you 2.5% in VAT. Its up to them....and for you to haggle. You may find that they will not change their VAT procedures as that may affect cash flow.
If the Seller is to play ball then it must issue a VAT invoice which must be dated before the date of the change to 20% and state that full payment is to be made on delivery of the van or some date less than six months away whichever is the earlier. That must be written onto the invoice. The Seller then deals with its VAT returns before the end of this year. That way you pay VAT at 17.5% even if you complete the deal once VAT has increased. It helps if you pay a deposit when that VAT invoice is issued. You have to make sure the seller guarantees to deliver within that six month window and that your contract includes for the seller to pay the extra 2.5% if they fail to so deliver
Phil
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Easy option.....pay up front before the end of the year so that your VAT invoice and receipt is issued whilst the level is 17.5%.
Really bad advice if I may say so. Yes, you could save money, but don't you think it would be wiser to make sure that the van is OK and any problems sorted before paying for it?
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Topic: Jan`s VAT Increase?
