VAT REDUCTION.

[SusiBus]

Soon to be purchasers, Germany has just reduced VAT like the UK did in 2008.

 

[Jester]

Soon to be purchasers, Germany has just reduced VAT like the UK did in 2008.

This would be to much to hope for on top of my VED now only £165

 

[5i1ver8ack]

We (living in the UK) don’t pay German VAT. We pay UK VAT. Any reduction in German VAT will have no effect on UK prices.

VW Germany will not charge German VAT on their exports to the UK. VW UK will charge UK VAT to UK customers.

 

[Jester]

I believe SusiBus was just pointing out that it could also be a possibility here in the UK as it was back in 2008

 

[5i1ver8ack]

Yes, I appreciate that. But it could also imply a possible decrease in prices as a result of the German decision.

 

[SusiBus]

This is alot bigger issue than VED on a few campervans. It will be a stimulus to get the whole country spending across the board. I bet there's a lot of people hoping to get down the pub to kick start the economy, but I'm afraid that still looks a while away.

 

[5i1ver8ack]

I should add, lest any of you think that VW UK might be getting away without paying any VAT (as German VAT is not charged), that it pays UK VAT on the imports.

 

[ChocolateEclair]

German VAT is being reduced from 19% to 16% from 1st July to 31st December. If the UK were to do the same it would mean a £2,000 saving on my new T6.1, although not building my hopes up just yet.

 

[Jester]

German VAT is being reduced from 19% to 16% from 1st July to 31st December. If the UK were to do the same it would mean a £2,000 saving on my new T6.1, although not building my hopes up just yet.

That’s the point 5iver8ack

 

[WelshGas]

More likely to be on new orders rather than delayed orders, if it happens.

 

[SusiBus]

This issue of a VAT reduction is of great interest to us because we have sold SusiBus T6, and are currently Caliless.
We've got SusiBus T6.1 on order. She was last heard of stuck at the docks at Felixstowe just prior to lockdown. We've been offered £500 off the agreed price, provided she is registered by 31st June, apparently a VW incentive to kick start sales, that is of course if she arrives by then, and when she arrives, will she be going anywhere?
Do we push hard to get her registered by the 31st June so as to pocket VW £500. Do we try to delay registration until July, which l think is a new quarter for VW sales, different incentives etc, and perhaps different VAT?
Some people think that Covid 19 has given them problems !

 

[Jester]

More likely to be on new orders rather than delayed orders, if it happens.

May be, but same scenario did work in my favour in 2008

 

[2haw]

More likely to be on new orders rather than delayed orders, if it happens.

Surely it would be at point of Registration on ALL orders?

If the VAT rate was lowered tomorrow, then wouldn’t they have to charge the reduced rate, whether you ordered 6 months ago or not?

 

[WelshGas]

Surely it would be at point of Registration on ALL orders?

If the VAT rate was lowered tomorrow, then wouldn’t they have to charge the reduced rate, whether you ordered 6 months ago or not?

Maybe, maybe not. Who knows.

 

[5i1ver8ack]

Under current UK rules, the tax point (the date at which the VAT is applied) can vary, but is usually the following.

Situation	Tax point
No invoice needed	Date of supply
VAT invoice issued	Date of invoice
VAT invoice issued 15 days or more after the date of supply	Date the supply took place
Payment or invoice issued in advance of supply	Date of payment or invoice (whichever is earlier)
Payment in advance of supply and no VAT invoice yet issued	Date payment received

The date of supply for goods is the date they’re sent, collected or made available to the customer.

When VAT rates have changed in the past, HMRC have been very quick to check dates and correct VAT mis-charges.

 

[5i1ver8ack]

A UK VAT charge reduction would appear to be be attractive, I agree. But every silver lining has its cloud. UK PLC has to pay back all the recent borrowing at some point and a reduction in one of the largest revenue-generating taxes (1st Income tax, 2nd National Insurance, 3rd VAT) might very well result in a higher tax elsewhere. Be carefull what you wish for.

 

[SusiBus]

A UK VAT charge reduction would appear to be be attractive, I agree. But every silver lining has its cloud. UK PLC has to pay back all the recent borrowing at some point and a reduction in one of the largest revenue-generating taxes (1st Income tax, 2nd National Insurance, 3rd VAT) might very well result in a higher tax elsewhere. Be carefull what you wish for.

You make me feel guilty, because I'm really hoping for a VAT reduction imminently before I pay for our Cali. Like the people that got caught out by the " VEDGATE "scandal I'll be sick as a parrot as the saying goes if it's after, sorry but human nature.
But l must confess that we are serial VED avoiders also, usually travelling by bike or a tax free 1969 MGB.
Any savings that we make will probably only go in care home charges, thus saving the government supporting us in old age, so they will get it in the end!

 

[5i1ver8ack]

You make me feel guilty, because I'm really hoping for a VAT reduction imminently before I pay for our Cali. Like the people that got caught out by the " VEDGATE "scandal I'll be sick as a parrot as the saying goes if it's after, sorry but human nature.
But l must confess that we are serial VED avoiders also, usually travelling by bike or a tax free 1969 MGB.
Any savings that we make will probably only go in care home charges, thus saving the government supporting us in old age, so they will get it in the end!

I'm sorry - that wasn't my intention at all!

I simply didn't want you getting too excited about something that may not happen, or if it does, is counterbalanced by some other change, I wholeheartedly agree that a drop in VAT would be appreciated by all of us – especially if you can save a couple of thousand ion a new bus.

 

[5i1ver8ack]

Well, not today anyway.

 

[Rowls1958]

No VAT reduction for the UK unfortunately - perhaps in the August budget but I doubt it......