Question 1

How does the VAT margin scheme work?

Accepted Answer

When purchasing a second-hand car from a private individual, you pay no VAT. When selling, you only pay VAT on the profit margin (difference purchase-sale). We calculate this per vehicle and ensure correct invoicing.

Question 2

How do I keep my vehicle inventory?

Accepted Answer

We maintain a detailed inventory register: purchase price, costs (cleaning, repairs), and sale price per vehicle. This is mandatory under the margin scheme.

Question 3

What VAT applies to repairs vs. parts?

Accepted Answer

Both labor and parts fall under 21% VAT. For export outside the EU, 0% applies. We ensure your invoices are correctly divided.

Question 4

Do I need to maintain a purchase register?

Accepted Answer

Yes, when applying the margin scheme, a purchase register is mandatory. Per vehicle we register: purchase date, supplier, chassis number, purchase price and all costs.

Question 5

How do I invoice for vehicle exports?

Accepted Answer

Export outside the EU: 0% VAT with CMR document as proof. Intra-community (within EU): mandatory mention of buyer's VAT number and intra-community listing. We check every file.

Accountant Car Dealers & Garages

Every car correct. Every invoice watertight.

Our Expertise

"Margin scheme, normal VAT, export... every car is a different puzzle."

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