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
- export that vehicle to the EU with the intention to resell it in the EU or to Northern Ireland
To claim a payment under the scheme you must keep specific information as part of your record keeping.
If you buy second-hand motor vehicles in Great Britain and move them to Northern Ireland for resale, find out more about your record keeping requirements.
What must be included in your stock book
To use the payment scheme, you must keep a stock book. The stock book must be kept separate from any records you maintain for a second-hand margin scheme.
The stock book must record the following details for each motor vehicle on which a claim is made:
- reference number for each vehicle in numerical sequence
- date of purchase
- date the vehicle is exported from Great Britain to the EU
- purchase invoice number
- purchase price
- value on which the claim is based (if different from the purchase price)
- name of seller
- description of the vehicle (including make, model, engine size and colour)
- DVLA logbook reference number
- vehicle identification number or chassis number
- vehicle registration number
- date of first registration
- date that the vehicle is sold
- sales invoice number
- name and address of buyer
- selling price
- details of how the vehicle was disposed of (if not sold)
What must be included on purchase invoices
When you buy a vehicle that you intend to claim a payment on, you must get an invoice from the seller that includes:
- date of purchase
- seller’s name and address
- your name and address, or that of your business
- the vehicle’s unique stock book number (if you bought the item from another VAT-registered business)
- invoice number (unless you made out the purchase invoice yourself)
- vehicle description
- total price — you must not add any other costs to this price
- if you bought the vehicle from a UK VAT-registered business under the margin scheme for second-hand goods.
If you are buying from a private individual or a business that is not VAT registered in the UK, you must make out the purchase invoice yourself.
Evidence that you have exported the vehicle from Great Britain to the EU
You must hold information for each vehicle on which you make a claim which shows it has been exported from Great Britain to the EU.
This must show the:
- mode of transport involved
- route of the movement (for example, the port of exit)
- date of the departure of the vehicle
- delivery address for the vehicle
You must keep copies of all documents or other records that you produce or receive the contains this information including:
- any customs declaration or other documentation that you have which shows the vehicle has been exported from Great Britain or imported into the EU
- copy of travel tickets
- name of ferry or shipping company and date of sailing or airway number and airport, road consignment (CMR) note, courier dispatch paperwork, bill of lading or airwaybill
- details of any haulier or other courier who makes the movement on your behalf — including any invoices they have issued and any information they have provided that is covered in this guidance
Keeping records that you use for the scheme
All records must be kept for 6 years. If this causes you serious storage problems or undue expense, you can contact HMRC who may allow some records to be kept for a shorter period.
How to calculate the value of eligible motor vehicles
Find out how to calculate the final purchase price on eligible motor vehicles using the scheme.
Published 25 January 2023
