HMRC have confirmed with NFDA-NI representatives that they have decided to extend the VAT margin scheme deadline.

Earlier this year HMRC advised us and our members that if you have second-hand motor vehicles in stock that you bought in Great Britain and moved to Northern Ireland before 1 May 2023, you can continue to use the VAT margin scheme if those vehicles are sold by 31 October 2023. If they were to be sold after 31 October 2023, you would have to account for VAT on the full selling price of the vehicles sold after 31 October 2023.

They have listened to feedback from businesses about the 31 October deadline and have now extended the period that you can use the VAT margin scheme for vehicles you had in stock on 1 May 2023 and have not yet sold.

You can now use the VAT margin scheme for eligible motor vehicles that you purchased in Great Britain and moved to Northern Ireland before 1 May 2023 and still have in stock, if you resell them by 30 April 2024. If you sell them after 30 April 2024, you will have to account for VAT on the full selling price. So, for clarity, the resell VAT deadline has been extended from October 31st 2023 to April 30th 2024.

Find out more information about motor vehicles you had in stock on 1 May 2023.

For any further information or questions, please reach out to your NI representative, Symon Cook (symon.cook@rmif.co.uk).