UV6 - Margin VAT Liability Report

Purpose of the Report:

The UV6 report is designed to help identify potential VAT liability and coding errors related to the sale of non-qualifying vehicles under the margin scheme. Note that this report may duplicate transactions highlighted in the UV5 report.

Associated Risks:

• Incorrect VAT Coding: If the wrong VAT code is used when selling a non-qualifying vehicle, there may be discrepancies in VAT reporting.

• Hire Purchase Vehicles: Vehicles sold on hire purchase are supplied to finance companies and should not be zero-rated for VAT. Ensure the correct VAT treatment is applied.

• Exported Vehicles: Verify whether the vehicle has been exported. If so, ensure that the correct documentation and evidence supporting the export is available and compliant.

• Adaptations for Disabled Persons: If the vehicle has been permanently adapted for a disabled person:

  • Ensure you have a completed certificate signed by the disabled person.
  • Verify that the vehicle is supplied solely for the personal use of the disabled individual.
  • Remember, supplies to businesses are not zero-rated for VAT under this scheme.

• Inter-Group Vehicle Transfers: If the vehicle has been transferred inter-group (between dealerships under the same VAT registration), it may fall outside the scope of VAT. However, ensure that any profit or loss generated from the transfer does not lead to an incorrect adjustment in the final margin.