F&I Management & Training

The RMI has issued guidance to dealers on the higher rate of VAT that comes into force on 4 January 2011

There had been fears that the hike would pull forward sales and boost business in November and December.

The advice covers the possible options open to dealers in the lead up to the introduction of the higher rate tax. The full advice is available here

• Vehicles invoiced in prior to 4 January 2011 and part paid and then delivered in January or beyond
• Vehicles invoiced and fully paid before 4 January 2011 but delivered after 4 January 2011
• Vehicles invoiced on finance prior to 4 January 2011, the deposit paid but finance payment not received until after 4 January 2011 because delivery is after 4 January
• Vehicle invoiced in prior to 4 January 2011 and part paid and then delivered in January or beyond
• Vehicles invoiced and fully paid before 4 January 2011 but delivered after 4 January 2011
• Vehicles invoiced on finance prior to 4 January 2011, the deposit paid but finance payment not received until after 4 January 2011 because delivery is after 4 January