V3.538 Qualifying cars

Where VAT charged on the supply, acquisition or importation of a car is not excluded from credit as input tax, or the person has opted so to treat it1, the car is a qualifying car2.

For input tax deduction in respect of qualifying cars, see V3.443.

A taxable person selling a qualifying car must account for VAT on its full selling price. Since the sale of such a car is not under the margin scheme, the taxable person will issue a VAT invoice if the purchaser is also a taxable person. See

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