21% VAT ON INVOICE PRICE AND DATE?

bombers

Can anyone tell if i buy a car end of jan(invoiced) and by the time i get it to customs its feb ,do i pay jan rate of vat or feb rate of vat .i was told jan rate of exchange (sterling)will be different than feb ,o.f does the date make a difference

reverandkenjami

Vat will be the same regardless if it is Januray or February!!

Woodgate

bombers wrote: »

Can anyone tell if i buy a car end of jan(invoiced) and by the time i get it to customs its feb ,do i pay jan rate of vat or feb rate of vat .i was told jan rate of exchange (sterling)will be different than feb ,o.f does the date make a difference

Can't understand what you are saying. VAT rate is the same whenever you buy. Are you on about VRT??

Bob the Builder

The price you pay is based on invoice date. So if you were invoiced in November and you only got around to paying it in February - then you still pay the November rate because thats the invoice date.

As regards exchange rates, if you were invoiced in sterling - if its the sterling currency that was on the invoice, you legally pay in sterling, so the exchange rate is whatever it is when you get around to paying in the invoice.

Of course, there's gray areas everywhere, but thats the gist of it..

copacetic

I think you are all missing the OPs point.

Afaik Revenue set exchange rates per month, they take the invoice price, convert to euro using their set rate and take 21.5% of this price as VAT.

So the amount of VAT (not the % rate) needing to be paid will vary depending on their set exchange rate.

OP, my understanding is that they charge you the rate they had at the date of your invoice. You have no way of knowing at this stage what feb exchange rate will be.

bombers

jan09 rate of exchange is fixed at .944 ,out of every 100 it cost you .056 if get pay for the car in on 31 jan which is a saturday and go to office on monday rate could be down to 0.864 which is another 8%(?) onto my vat bill eg'
car costs 10000
fixed customs vat @21.5% (jan rate 0.944) = E2277.5
guess vat @21.5% (feb rate 0.864) = E2500.0
costing E233.5 more do you see my point and why i am asking
if i got an invoice for the 31 jan 09 will they give me the jan rate

Brewster

bombers wrote: »

jan09 rate of exchange is fixed at .944 ,out of every 100 it cost you .056 if get pay for the car in on 31 jan which is a saturday and go to office on monday rate could be down to 0.864 which is another 8%(?) onto my vat bill eg'
car costs 10000
fixed customs vat @21.5% (jan rate 0.944) = E2277.5
guess vat @21.5% (feb rate 0.864) = E2500.0
costing E233.5 more do you see my point and why i am asking
if i got an invoice for the 31 jan 09 will they give me the jan rate

Good question Bombers, I dont have the answer. However, Ill be in the same situation later in year when I register car. If I could get a Jan invoice, as you say you'll save money. Keep me posted on what happens, send me a pm if u like

Brewster

What I have been told, that if you produce evidence of what exchange rate you got when you paid for car, then they will be happy to use your exchange rate rather than the set ones. So if you got a rate of 0.96 to buy car a few weeks ago, my understanding is they will use this rate to set what VAT is paid. You will need bank evidence of this id say

ninty9er

Have you bought the car?? Could you not source one more than 6 months old with more than 6,000 miles on it?

bombers

yes and no to questions ninty9er

ninty9er

bombers wrote: »

yes and no to questions ninty9er

Then you pay VAT at the Revenue exchange rate prevailing on the invoive date.

Probably better off with a January invoice date, but who knows what could happen in the next 15 days.

Brewster

Oh defo, the rate wont be 0.94 next month. 0.9 at best. The set rates about a week before end of month.

Tell me, if I placed a deposit a new UK car last week, but wont have it till April is it possible garage would give me a Jan invoice seeing as thats the date I ordered car and paid desposit or will they only give me an April invoice when they hand over keys

bombers

will look into this monday when everybody is open

ninty9er

Brewster wrote: »

Oh defo, the rate wont be 0.94 next month. 0.9 at best. The set rates about a week before end of month.

Tell me, if I placed a deposit a new UK car last week, but wont have it till April is it possible garage would give me a Jan invoice seeing as thats the date I ordered car and paid desposit or will they only give me an April invoice when they hand over keys

You can ask for a pro-forma invoice, but given that auditors will be going through motor trade customers with a fine tooth comb and probably and endocsope for the next year end, you might not get any joy. It's essentially an invoice for a product you won't receive for some time, a normality in the the hospitality trade, but not really in the motor trade.

pureirish

bombers wrote: »

will look into this monday when everybody is open

Dying to hear how you get on tomorrow. I bought a car yesterday and if what you're saying is right the difference between bringing it in now versus Feb could be €200 or €300

bombers

i rang vrt office today and lady said the rate of exchange is on the month you bring it to them ,and wont know feb rate for a week or closer to end of the month.

pureirish

bombers wrote: »

i rang vrt office today and lady said the rate of exchange is on the month you bring it to them ,and wont know feb rate for a week or closer to end of the month.

Get it in now so if you can. That's what I'll be doing. I'd say you'll be looking at around .90 versus the Jan rate of .944