Specific applications: motor dealers and manufacturers: self-supply of motor cars: general
The vast majority of cars produced by manufacturers or acquired by dealers fall within the stock in trade provisions introduced in 1999 based on the intention to sell the vehicles within 12 months. Consequently VAT incurred on the purchase, import or acquisition of the cars will be deductible as input tax. A self supply will however be required at any time where the intention to sell the vehicle within the next 12 montjhs ceases and the car is put to a non qualifying use. Please see Section 3 Notice 700/64, VIT 56000 and VIT 52400 for further information.
Where self supply does apply for motor dealers and manufacturers it now follows the normal rules.