What VAT rates will apply to cars delivered in January but ordered the previous year?
HMRC advice is that VAT is normally due at the rate in force when a tax point is created. In the case of supplies of goods the tax point will usually be the earlier of: When the supplier issues a VAT invoice or receives payment, or When the customer receives the goods. The date of the order being taken will not create a tax point, so if the car is ordered before 1 January 2010 but is not delivered or paid for until, on, or after, that date VAT of 17.5% will be due. If a deposit is taken before 1 January 2010 and the balance is paid on delivery of the car on, or after ,1 January 2010 then 15% will be due on the deposit and 17.5% on the balance. For further advice on this, please contact the HMRC VAT Helpline on 0845 010 9000.
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