AVOID THE NEW VAT RATE?

[WHITEY20]

Those who placed orders before 30th november 2010 and havent taken delivery of their car before Jan 4th may receive 2.5 % discount from VW. I ordered end of september 2010, have been given build week 4 but not taking delivery until March. I spoke to the dealer and they're a bit unsure where I stand. If I took delivery straight away I'd qualify, It's the waiting until March thats the problem. But I have to as I have an "11" reg plate ready. Aslo a potential saving of arround £750!
Any views? 

[Neil gti]

I think they have to invoice you before 4th Jan ? and you have to pay for it, but if its on finance i can't see finance Co releasing the cash if you havn't taken delivery. 

I cant see them standing the 2.5% rise as you say its £750 speak to them and see if there is a way around it

[Jimmymature]

I think they have to invoice you before 4th Jan ? and you have to pay for it, but if its on finance i can't see finance Co releasing the cash if you havn't taken delivery. 

I cant see them standing the 2.5% rise as you say its £750 speak to them and see if there is a way around it

I don't see why you'd have to pay for it.  VAT can be charged at the old rate and not be paid immediately as long at was invoiced at the correct VAT rate.

The Invoicing date is key to this issue.


Jim

[Neil gti]

Yes but Jim if it was invoiced now, VW would want the cash now not in March thou would'nt they ? 

[Jimmymature]

Yes but Jim if it was invoiced now, VW would want the cash now not in March thou would'nt they ? 

Not necessarily, there isnt any reason why they couldn't invoice now with payment terms set to the date of the delivery.


This is legally acceptable, isnt great for VW but not as bad as some might think.


Jim

[Liam1]

I had this discussion with my dealer when ordering at the start of October. They told me if you take delivery in January VW would stand the 2.5%. Any time after that and I would have to pay the increase. I even offered to pay for the car in December and not take delivery until March but they turned me down. Apparently VW invoice the dealer for the car when it is registered so registration in March would give a 20% VAT invoice. Daylight robbery.

[lowdown]

Those who placed orders before 30th november 2010 and havent taken delivery of their car before Jan 4th may receive 2.5 % discount from VW. I ordered end of september 2010, have been given build week 4 but not taking delivery until March. I spoke to the dealer and they're a bit unsure where I stand. If I took delivery straight away I'd qualify, It's the waiting until March thats the problem. But I have to as I have an "11" reg plate ready. Aslo a potential saving of arround £750!
Any views? 

I'm in a very similar position, but placed order end of Nov so not expecting to see it until March/April. No firm build week yet.

I went over the scenario you describe with my dealer and they gave similar response.

The sales contract has been drawn up based on 17.5%.

[am1w]

I don't know what 'payment terms' VW operate under. Is it 30 days, 3 months? I think it might be 30 days. Check their payment terms.
If invoiced now, and if the invoice has to be settled in 30 days, then you should avoid 20% VAT if payment is made within this time period.
You may then register and collect the car when you so wish, dealer being agreeable.
Tricky.

Nothing is certain but Death and Taxes.

Where's RED? He's the accountant.

[Neil gti]

yes i remember now the same conversation with the dealer when it went up from 15%

VW invoice the dealer for the car when it is registered, so the dealer will have to pay top whack in vat, surely they will pass it on ?

[p3asa]

yes i remember now the same conversation with the dealer when it went up from 15%

VW invoice the dealer for the car when it is registered, so the dealer will have to pay top whack in vat, surely they will pass it on ?

I think most dealers took the hit when it went from 15% to 17.5% did they not?
I'd imagine if they wanted the car sale that much they would just accept it.

I'm sure VW sent a memo out regarding taking the VAT increase when it rose from 15%. That there was a cut off point that they would pay it due to the long wait on their cars at the time.