How much is VAT? |
||||||||||
| Login | Tax calculator (cars) | Car chooser | Select by CO2 | |||||||
| View stored vehicles | Tax calculator (vans) | Fuel benefit check | Locator |
| News Archive | Latest articles |
How much is VAT?
D Brailey
November 2009
On December 1st 2008 VAT was reduced from 17.5% to 15% and the end date given for this reduction is 1st January 2010.
Several manufacturers and dealers are offering to absorb the 2.5% difference if cars are ordered now. Buyers can also lock into the 15% VAT rate if they get a full invoice dated prior to 1st January and/or pay in full provided the car is delivered before the end of June 2010.
Company car tax is calculated on the official list price of the vehicle at the time of registration. Theoretically this should include VAT at the rate effective at the time, so a January registered car will still have to be taxed on the list price including VAT at 17.5% even if the car was invoiced and paid for in December using the 15% rate.
