The standard rate of VAT was temporarily reduced to 15% on the 1st December 2008 and will return to 17.5% on the 1st January 2010. What will this mean for commercial vehicle sales?
Many people are under the misconception that if they order their new vehicle now but don’t take delivery until after the VAT increase on the 1/1/2010 then the vehicle will be at the old VAT rate of 15%. This, however, is untrue. The VAT rate is determined by the tax point which in the case of new vehicles is the delivery date. So even if you have paid for your vehicle in full but it is not delivered until after the VAT increase, you will need to pay the increased rate of VAT based on the date of delivery.
To avoid paying the higher rate of tax on any vehicle purchases it is important to place your new vehicle order as soon as possible so that the delivery of your new vehicle can take place before 31/12/2009. The cut-off point for vehicles to be delivered before January 2010 will probably be somewhere around the 10th December 2009.
Here at Crusader Vans, we are able to help you save over 40% off the UK dealer list price on most makes of a commercial vehicle, so why not place your order today and not only benefit from great discounts but also beat the VAT increase.