UV1 - Qualifying Vehicles

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Purpose of Report:

To identify VAT-bearing used vehicles where Input VAT has been claimed on the purchase but the Output Tax declared on sale is less than this.


Associated Risks:

Those with little or no Output VAT may have been incorrectly sold as margin scheme vehicles.


Bear In Mind:

The vehicle may have been zero-rated as a n export or disabled adaption - see bullet points under NV1 - Liability Issues. The vehicle may also have been supplied inter-company. If this is the case, ensure:

The "importing" dealership has treated the vehicle as VAT qualifying when finally sold; and

Input Tax hasn't been recovered again by the "importing" dealership - VAT will have already been recovered when the vehicle was originally acquired.


UV1 - Qualifying Vehicles