Any mention of the linked insurance product on your invoice must show that no separate charge is being made. VAT-registered dealers, if sold to you under the Margin Scheme (this should be clear from the invoice you receive) make sure that you have the records you need if the vehicles are eligible to be sold under the Margin Scheme If you cannot meet those conditions, the car and licence are treated as a single supply and you must calculate your margin on the total, combined value Where there has been a succession of transfer of going concerns or assignments or a mixture of both, it’s the first person in that chain who must have been entitled to use the Margin Scheme themselves. 11.2 Records you must keep if you transfer a business as a going concern

Without the Margin Scheme, you would have to account for VAT on the full selling price of each vehicle. Your selling price for the purposes of calculating the margin on the vehicle must not include the charge for the warranty.standard-rated commission, which you keep. You must account for the VAT on this outside the Margin Scheme. Under the Margin Scheme, you only have to account for VAT when you sell a vehicle for more than you paid for it. Your selling price for the purposes of calculating the margin on the vehicle must not include the charge for the insurance product. 9.3.2 When the charge is standard-rated When you sell a used car privately it is important to provide the buyer with a 'sold as seen, tried and approved without guarantee' receipt.

You can easily create and produce a reliable car sale invoice with the use of a car sale invoice template. You may also see cash invoice templates. This notice assumes that you have a working knowledge of basic VAT principles, as outlined in VAT guide (VAT Notice 700). The Personal Export Scheme allows entitled customers to buy a new or used motor vehicle in the UK free of VAT for export. SIGNED, SEALED, AND DELIVERED by ______________________ in the presence of the below named Solicitor, the effect of the above written Odometer Disclosure Statement having been explained by me to ______________________ before the execution of it, this ________ day of ________________, ________.You can find further information on the implications of these arrangements for IPT in Notice IPT1: Insurance Premium Tax. 9.4 Making a separate charge for a warranty Car sale invoice templates can be easily edited as they are created in file formats, like PDF, Word, and Excel. These file formats are familiar to us and we have been using them since we were young. If the insurance contract is between you and the insurer, and only your risk of having to repair defective items is covered, then the supply is standard-rated. Find out more about selling vehicles under the scheme in Personal Export Scheme (VAT Notice 707) . 11. Transfer of a going concern and assignments of rights 11.1 What happens if you take over a business as a going concern

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document. Disbursements do not form part of the selling price, these should be accounted for separately outside the Margin Scheme. Section 9 contains information on how you should treat linked insurance products and warranties. Be honest – take pictures of damage, and write in the description if it needs brakes, belts, or other mechanical work You can reclaim the VAT on these invoices under the normal rules but you must not deduct the charges from your Margin Scheme selling price. 9. Linked insurance products and warranties 9.1 What linked insurance products and warranties are If you buy a number of vehicles at an inclusive price and do not intend to sell them as one lot, you must convert the price to sterling and then apportion this amount between the vehicles.

When you buy a vehicle at auction, you will usually be charged an indemnity fee. This is a charge which ensures that you will have compensation or indemnity if the vehicle you have bought is later found to have been stolen or to have finance outstanding on it. You can resell such vehicles using the Margin Scheme provided you meet the conditions in paragraph 2.2. 10.8 Selling vehicles that have been adapted for a disabled person The values shown on any documentation raised to the finance company must always be the same as the values declared to HMRC in your books and records. This includes the value of any part-exchange vehicle or cash deposit paid by the customer. 10.6 Vehicles you have rebuilt Read Your Charter to find out what you can expect from HMRC and what we expect from you. Help us improve this notice

The contract should always include the words ‘ sold as seen , tried and approved without guarantee’, but bear in mind that this wording doesn’t affect the legal rights of the buyer. This means that the vehicle must match its description and be roadworthy. There are no grey areas in UK law – it is illegal to sell a car in an unroadworthy condition to anyone. vehicles bought from registered dealers in EU countries supplied to Northern Ireland which have not been supplied under a margin scheme If, however, you are selling as one lot vehicles which you bought as one lot, you need only show a total foreign currency and sterling value for that lot. If you issue a sales invoice in a foreign currency, the invoice must also show the sterling equivalent of the selling price.If you sell a vehicle on behalf of a third party, and you issue an invoice for that vehicle in your own name, you are acting as an agent for VAT purposes and you must account for any output tax on the sale. You can find out more about agents and the Margin Scheme in The Margin and Global Accounting Scheme (VAT Notice 718). 5.7 Invoices in foreign currencies Two copies of the document should be created. Once both parties have read and agreed the contents of the receipt they should sign both copies with each party keeping a copy of the receipt that has been signed by both. If the transferor bought them on invoices showing VAT, then they are not eligible for the scheme and you will have to account for VAT on the full selling price when you sell them.