Quote:
Originally Posted by Ronstein
Err... yes it is. Either through the second-hand margin scheme or at 20%. It doesn't affect the price the buyer pays, as you're just paying market price.
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I thought we'd already established that most dealers use the second hand margin schemes, particularly the types of dealers we're discussing.
Ok, so saying none of the VAT is charged is over simplifying. Using that scheme the majority of the VAT is not charged, in comparison to a new car. Is that better? I'd be willing to bet that through creative accounting, particularly on pre reg cars, the dealers shows a lot of sales as not making a profit at all and therefore pays no VAT.