Don't tell me thats your F40 ?
OK, I won't tell you.
The car in the photo is one of the rare Michelotto F40's, do the math, I still believe in Santa Claus every Christmas and pray.
Anyway regarding this TAX I was told if a delivery is in 2011 then that shows up on their books hence they need to pay 20%. But like I said
I have a piece of paper stating delivery in June 2010 and it does "not" say
I am getting a little impatient with this, its going to snow here very soon and my house is down a very steep slope so I won't be getting it this year now.
If this prolongs then I will purchase a LP560 until the F458 comes.
I will assume the dealership is telling you that the new rate applies? I understand the situation and in our business, we deal with this on a daily basis by 3rd party vendors who think they will be stuck with the tax liability.
Based on the rates you provided, I assume the dealership is UK based. I also assume that you made a deposit, but have not paid the full purchase price, which will be paid upon delivery? If these are your facts, I have to agree with the dealership based on the UK Inland Revenue guidance for VAT as follows:
Deposits - VAT applies to the amount paid.
Delivery or prepayment of goods or services - If you do not prepay the balance, VAT applies when the goods or services are delivered. Thus, if you take delivery in 2011 without prepayment, you will be obligated to pay the VAT rate on the balance due upon actual delivery in 2011.
However, if you prepay the balance prior to 1/1/11 and have not taken delivery of the vehicle, you will be obligated to pay the VAT at the 2010 rate.
Delivery or payment of balance due in 2011 - the 2011 VAT rates will apply to the balance paid or due upon delivery.
From Inland Revenue website:
[h3]Advance payments and deposits[/h3]
An advance payment, or deposit, is a proportion of the total selling price that a customer pays before you supply them with goods or services. If you ask for an advance payment, the tax point is whichever of the following happens first:
- the date you issue a VAT invoice for the advance payment
- the date you receive the advance payment
You include the VAT on the advance payment on the VAT Return for the period when the tax point occurs.
If the customer pays you the remaining balance before the goods are delivered or the services are performed, another tax point is created when whichever of the following happens first:
- you issue a VAT invoice for the balance
- you receive payment of the balance
So you include the VAT on the balance on the return for the period when the tax point occurs.
A customer wants to buy a bicycle from you. The total price is £200 including VAT and they pay you a deposit of £50 (including £7.44 VAT) on 1 July. You account for the £7.44 VAT on the return that covers 1 July.
Before delivery your customer then pays you the balance of £150 (including VAT of £22.34) on 1 December and you account for the VAT of £22.34 on the return that covers 1 December.
You may want to research their website for futher information: http://www.hmrc.gov.uk/vat/managing/...nstalments.htm
Now that I have provided you information overload, it appears that you may be able to get the 2010 VAT rates applied to the balance due under the following scenario: 14.2.2 Actual tax points If you… (a) either issue a VAT invoice or receive a payment before the basic tax point Then the…
tax point for the amount you invoice or receive is the date you issue the invoice or receive the payment, whichever happens first. 14.3 Applying these tax point rules on 4 January 2011 Where a tax point occurs before 4 January 2011 the supply (or the part of it covered by the tax point) will remain liable to VAT at 17.5 per cent. Tax points occurring on or after 4 January 2011 will be liable to VAT at 20 per cent.
In many cases a supply will have a single tax point – for example, if you are a retailer, and a customer enters your shop and pays cash for an item which they take away with them. The tax point occurs when the goods are handed over/paid for. So where this happens before 4 January 2011 the supply is liable to VAT at 17.5 per cent. On or after 4 January 2011 the supply will be liable at 20 per cent.
In other situations there can be two or more tax points. For example, you may receive a deposit for goods to be delivered later. This makes the position less straightforward. Here, a deposit received before 4 January 2011 will be liable to VAT at 17.5 per cent (but see below). However, if the goods are not delivered (and the balance of the price is not invoiced or paid for) until on or after 4 January 2011, the 20 per cent rate will apply when it comes to accounting for the remaining VAT that is due.
At the end of the day, if you are not taking delivery in 2010 and not paying the balance due prior to delivery in 2010, then your only option is to request the Dealership to issue you a VAT invoice for the balance due prior to January 4, 2011. This creates a tax point that is subject to the 17.5% rate.
Here is the link to their webpage that provides the guidance above: http://search.hmrc.gov.uk/kb5/hmrc/h...+standard+rate
click on the third item or maybe this link will work: VAT – CHANGE OF THE STANDARD RATE TO 20 PER CENT: A DETAILED GUIDE FOR VAT-REGISTERED ..
Good luck Mate!