In September, HMRC issued a reminder about the upcoming changes to VAT on sales of second-hand cars in Northern Ireland
 |
HMRC advised that if businesses have second-hand motor vehicles in stock that they bought in GB and moved to NI before 1 May 2023, they can continue to use the VAT margin scheme if those vehicles are sold by 31 October 2023. If they were to be sold after 31 October 2023, the business would have to account for VAT on the full selling price of the vehicles. |
HMRC has listened to feedback from businesses about the 31 October deadline and has extended the period that businesses can continue to use the VAT margin scheme for vehicles they had in stock on 1 May 2023. Businesses can now use the VAT margin scheme for eligible motor vehicles that they purchased in Great Britain (GB) and moved to Northern Ireland (NI) before 1 May 2023 if they still had these vehicles in stock on 1 May 2023, and resell them by 30 April 2024.
Further information is available in the ‘Motor vehicles you had in stock on 1 May 2023’ section on GOV.UK.