FTA has released a new guide on the VAT applicability in the Automotive sector VATGAM1. It is a long awaited guide which comprehensively covers the various supplies in the Automotive Industry. It covers Car Sale, Hire purchase, Trade-ins, Used/preowned cars supplies, Car Lease, Export/Import of Cars, Warranty, Promotions/Discounts and Auctioneering.
The Key Highlights of the Guide are:
- Clarity on time of supply for Car Sales
- Trade ins being two separate supplies for VAT treatment
- Display prices for cars to be inclusive of VAT
- Clarity on Profit Margin scheme applicability
- Time of Supply clarity on Leased Cars
- Various scenarios for Import and Export of Cars
- Treatment of Salik reimbursement clarity
Please find enclosed the detailed guide released by FTA for your ready reference.
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