Purpose of Report:
To identify used vehicles with low mileage to confirm correctly eligible for sale under the margin scheme.
Associated Risks:
•Used vehicles with low mileage may be VAT qualifying but incorrectly recorded as margin scheme sales - check the purchase invoice details. If VAT is charged on the purchase invoice the vehicle is not eligible for sale under the margin scheme even if the dealer has chosen not to reclaim the input tax.
•Be aware of repeated purchases of low-mileage used vehicles from the same supplier. They may have been imported with no VAT paid or incorrectly supplied zero-rated for VAT to a UK business.
Bear In Mind:
•This report assumes the "mileage" field is correctly completed by the dealership.
•The query uses mileage less than or equal to 500. This can be amended to suit.
