Claims for interest on overpaid VAT on Demonstrator cars restricted

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Overpayments arose when demonstrator vehicles were sold under the 'margin scheme'

Author: Dennis Chapman
Published:
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This article is 12 years old.

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A recent ruling by the Upper Tribunal (a special higher tribunal in VAT cases) has restricted claims by dealers for interest lost in treating demonstrators as ‘non qualifying vehicles’ to simple interest as opposed to compound interest. 

The VAT overpayments arose when demonstrator vehicles were sold under the ‘margin scheme’.

Dennis Chapman

In remembrance of Dennis Chapman 1951 -2015

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