VAT decision
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Motor retailers will be able to reclaim even more overpaid VAT
following a decision made by HM
Revenue & Customs (HMRC), according to the RMI’s
National
Franchised Dealers Association (NFDA).
HMRC, following a further decision in the House of Lords, has
conceded that it must pay claims for overpaid VAT on
demonstrators and manufacturer bonuses that it had previously
believed it did not need to pay in full.
NFDA director Sue
Robinson commented: “This is good news for dealers, who have
previously struggled to have claims paid, or have signed to make
undertakings that they will repay VAT to HMRC if Customs had won
the case.”
HMRC had argued that only certain types of claim were covered by
the Marks & Spencer decision that is the basis for these
claims, so portions of some claims were held back. This latest
ruling means that full payment will need to be made.
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By GlobalDataRobinson added: “Most dealers who are eligible will have made
claims by now, but we urge anyone who still have possible claims to
make them as soon as possible in case moves are made to close this
gap by legislation.”
