The second-hand motor vehicle payment scheme allows you to claim a VAT-related payment if you buy an eligible second-hand motor vehicle in Great Britain and:
- move that vehicle to Northern Ireland with the intention to resell it in Northern Ireland or to the EU
- export that vehicle to the EU with the intention to resell it in the EU or to Northern Ireland
Find out more about the scheme if you:
Motor vehicles that are eligible for the scheme
A vehicle is second-hand when it has been driven on the road for business or pleasure purposes or is suitable for further use.
If you are moving a vehicle from Great Britain to Northern Ireland with the intention to resell it, it must be registered with the DVLA when it is moved to Northern Ireland.
If you are exporting a vehicle from Great Britain to the EU with the intention to resell it, it must be registered with the DVLA when it is exported to the EU.
The types of second-hand vehicle that are eligible for the payment scheme include:
- cars
- vans
- lorries
- motorcycles
The scheme can be used for second-hand vehicles that have been bought in Great Britain from:
- private individuals
- non-registered businesses
- dealers or businesses unable to reclaim the input VAT on purchase
- VAT-registered dealers if sold to you under the margin scheme (this should be clear from the invoice you receive)
- Motability with an invoice showing VAT charged at the zero rate
Motor vehicles that are not eligible for the scheme
You cannot use the scheme for motor vehicles that:
- you do not intend to resell, such as vehicles bought for private use or use within your business
- you intend to sell as scrap or break up and sell as parts
- are purchased as collectors’ items (vehicles of scientific, historical or archaeological interest)
Published 25 January 2023
