Purpose of Report:
To identify qualifying vehicles (including demonstrators) acquired from other dealerships within the same VAT registration where the VAT declared on the onward sale is nil or low (less than £250.00 in this example).
Associated Risks:
•Vehicles have lost their qualifying status and have been incorrectly sold as margin0scheme (non-qualifying) vehicles.
•Input Tax may have been incorrectly recovered by more than 1 dealership within the VAT registration.
Bear In Mind:
•the vehicle may have been zero-rated as an export/EC sale or an adapted vehicle sold to a wheelchair user. Ensure you have appropriate evidence - see NV1 - Liability Issues.
•Note this report will identify vehicles transferred on within the dealership. (Sales with the same VAT registration being outside the scope of VAT). The VAT treatment of the final sale to a customer should be established.
•Input VAT field should be nil in each case as VAT will have already been recovered when the vehicle was initially purchased.
