The buyer does not pay VAT on 2nd hand cars. That is the dealer's responsibility. They have to pay VAT using the 2nd hand margin scheme on the profit they make from the car. Without knowing what the purchase price of the car was, the person buying it can't know how much VAT is due on the car.
It is now 17.5% for this type of policy.
Since the letter says 'We would ask you to answer accurately', 'dont guess' and 'if you cant remember say so' I fail to see how you arrive at that conclusion.
Jonathan Lonsdale wrote: > I privately purchased a used car 18 months ago and have today received the > following letter from the dealer:
Sounds like the simplest action would be to return the letter `not known at this address`.
If they are sending this letter out to hundreds of customers they would probably *expect* a large proportion to bin the letter and not reply, as they are basically sending junk mail, so why waste time replying at all?
How is "this type" identified and distinguished from insurance of a more "bona fide" character?
It's sold along with the car by the dealer or someone connected to them It isn't ordinary car insurance
See page 20-22 on
Indeed. The same phenomenon can be observed now with many retailers when they accept payment by credit card. There are more and more receipt statements being issued with wording like, "The total of these goods/services includes a 2.5% finance charge for payment by credit card. This does not alter the amount you have to pay" - or words to that effect.
This car sale example is merely a larger version of this.
Rgds __ Richard Buttrey Grappenhall, Cheshire, UK __________________________
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