Purpose of report:
To identify new vehicles where the VAT accounted for on sale is either very low or nil.
This may be due to vehicles being supplied for export or adapted and sold direct to a disabled person.
Associated Risks:
•Vehicles supplied on Hire Purchase are supplied to a fianance company and are not zero-rated for VAT.
•Do you have evidence that the vehicle has been exported?
•Has the vehicle been specifically and permanently adapted for a disabled person? Do you have a completed certificate signed by the disabled person? Are you satisfied that the vehicle is supplied for the personal use of the disabled person? Notes - supplies to businesses cannot be zero-rated.
Bear In Mind:
This report will also detail vehicles supplied inter-company or transferred to demonstrator stock. Make sure they don't lose their qualifying status when ultimately sold.
