RCB/7/18 VAT—motor dealer deposit contributionsRevenue & Customs Brief, Issue 7. 17 July 2018PurposeThis brief explains HMRC's policy on the VAT accounting treatment of promotions where payments are said to be made by motor dealers to finance companies on behalf of the end customer. These are often but not exclusively referred to as dealer deposit contributions (DDC) in the motor retail trade.ReadershipYou should read this brief if you're a: — retailer of new and used motor vehicles — company financing the sale to the final customer — VAT registered business that has purchased a vehicle with a DDCBackgroundHMRC is aware that motor dealers who operate DDC type promotions have adopted different VAT accounting treatments. This brief sets out HMRC's policy, which should be applied consistently across the industry going forward and explains how dealers, finance companies and VAT registered
Revenue & Customs Brief, Issue 7. 17 July 2018
This brief explains HMRC's policy on the VAT accounting treatment of promotions where payments are said to be made by motor dealers to finance companies on behalf of the end customer. These are often but not exclusively referred to as dealer deposit contributions (DDC) in the motor retail trade.
You should read this brief if you're a:
— retailer of new and used motor vehicles
— company financing the sale to the final customer
— VAT registered business that has purchased a vehicle with a DDC
HMRC is aware that motor dealers who operate DDC type promotions have adopted different VAT accounting treatments. This brief sets out HMRC's policy, which should be applied consistently across the industry going forward and explains how dealers, finance companies and VAT registered
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