Commentary

BB/16A/97 VAT changes for bonuses given by car manufacturers to dealers or fleet buyers

Part V16 Forms and other HMRC material

BB/16A/97 VAT changes for bonuses given by car manufacturers to dealers or fleet buyers

BB/16A/97 VAT changes for bonuses given by car manufacturers to dealers or fleet buyers

Business Brief, Issue 16. 21 July 1997

Fleet buyer bonuses are given by manufacturers or sole concessionaires to customers who make bulk purchases of their vehicles. Dealer demonstrator bonuses are payments made, or credits allowed, by car manufacturers or sole concessionaires to dealers, when the dealer agrees to adopt the car as a demonstrator vehicle.

In the past it has been common practice to treat the bonuses as the payment for a supply of services by dealers and customers, so VAT was due from the dealer or customer

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial