UV2 - Commercial Vehicles

The UV2 - Commercial Vehicles report is designed to identify all used vehicles where the dealership has recovered VAT on the purchase. This includes commercial vehicles that may have been taken in part-exchange. The report helps ensure compliance with VAT regulations by verifying that valid documentation supports the claim to input tax.

Associated Risks

1. Valid VAT Invoice Requirement:
   • A valid VAT invoice from the supplier must be held to support the claim for input tax recovery.
   • Action: Verify that all VAT invoices meet HMRC requirements.

Key Considerations

1. Self-Billed Invoices:

   • Invoices generated by most DMS systems are self-billed and do not qualify as sufficient evidence for input tax claims.
   • Action: Ensure that supplier-provided VAT invoices are on file for all relevant transactions.

2. Part-Exchange Vehicles:

   • Commercial vehicles received in part-exchange should be reviewed to ensure that VAT recovery is correctly documented and supported.

Scenarios Where This Report is Useful

• Identifying vehicles where VAT recovery has occurred to ensure supporting documentation is available.
• Reviewing part-exchange commercial vehicles for compliance with VAT regulations.
• Preventing errors in VAT input tax claims that could lead to penalties.