Jump to content

Recommended Posts

Posted

HI

Can anyone tell me if I pay cash for a second hand car from a dealership whether I will have to pay the 7% VAT on top of the listed price?

Thanks and Regards

Liam

Posted

my understanding is you only pay VAT on the amount financed.

So if the car is 1,000,000 then example 1 pay in cash you pay 1,000,000 plus some minor fees of changing registration etc.

If you paid 200,000 down ,and 800,000 financed at (making it easy 0% interest) then you would pay 200,000 + 800,000 + (7%X800,000) = 1,056,000b.

It's a reason why buying at a dealer, the ex demos are more attractive than a truly 2nd hand car, as you get better interest rate plus no need to pay VAT either.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.



×
×
  • Create New...