In September 2023, HMRC wrote to businesses that buy used motor vehicles in Great Britain (GB) and move them to Northern Ireland (NI) for resale.
They asked businesses to check their records for any vehicles held in stock since before 1 May 2023. This was because of changes to the way they would have to account for VAT on sales of second-hand motor vehicles they resold after 31 October 2023.
Based on feedback from businesses, HMRC extended this date to 30 April 2024.
This is a reminder that you will not be able to use the VAT margin scheme for these vehicles after 30 April 2024.
What you need to do
If you have second-hand motor vehicles in stock that you bought in GB and moved to NI before 1 May 2023, they are only eligible for the VAT margin scheme if you resell them on or before 30 April 2024.
If you resell these vehicles on or after 1 May 2024, you need to account for VAT on the full selling price.
Second-hand motor vehicle payment scheme
HMRC introduced the second-hand motor vehicle payment scheme on 1 May 2023.
You may be eligible for a VAT-related payment under this scheme if you bought second-hand vehicles in GB and moved them to NI for resale on or after 1 May 2023. This scheme has replaced the VAT margin scheme.
You should charge VAT on the full selling price of the vehicle when you sell it. However, the VAT-related payment will mean that when you resell the vehicle in NI you’ll pay the same net amount of VAT as you would if using the VAT margin scheme.
More information – about claiming a VAT-related payment
Find out more about:
- How to claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and move them to Northern Ireland for resale
- Motor vehicles you had in stock on 1 May 2023
If you contact HMRC, they can deal with you more quickly if you quote their reference number and give them your contact details.