A plan by Her Majesty’s
Revenue and Customs to charge VAT in recovery to
car dealers has been successfully resisted following an
important tribunal.
In a decision that has implications for the
car selling and
car finance industry,
car dealer Camden
Motors has successfully resisted HMRC attempts. The bill, if
granted, would run into hundreds of millions of pounds for
car dealers around the country.
Camden Motors made the case that
vehicle dealers should only consider
profit rather than income. HMRC had maintained that car dealers
should be restricted in the level of VAT reclaimed.
David Raistrick, the automotive partner at Deloitte and Touche, was
reported in the news as commenting: This is a very important
decision for Camden and the
motor retail sector as a whole. If HMRC were to be successful
with this approach it would cost the motor retail sector millions
of pounds at a time when it can little afford it.
