HMRC has published guidance on the second-hand motor vehicle export refund scheme. This is a new scheme that the UK Government intends to introduce from 1 October 2022 which will allow businesses to claim a refund of VAT if it moves a second-hand motor vehicle from Great Britain (England, Scotland and Wales) to Northern Ireland for resale. The scheme is designed to replace the EU’s margin scheme which is temporarily available for businesses selling second-hand motor vehicles in Northern Ireland that have come from Great Britain, where certain conditions are met including the grant of permission from the European Commission (“EC”).
Chartered Accountants Ireland has been consulted by HMRC to assist in policy development in respect of the new export refund scheme and met recently with HMRC to discuss the draft guidance. The Institute also continues to press HMRC for an update on the EC’s view on the temporary availability of the second-hand margin scheme post the end of the EU transition period.
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