TaxCorporate TaxVAT refund for car dealership sets precedent

VAT refund for car dealership sets precedent

British car dealership group, Lookers, has successfully negotiated a £15m VAT rebate from Customs & Excise for overpayment of tax on demonstrator vehicles between 1973 and 1996, paving the way for others to make similar claims.

Link: Marathon runners handed VAT bills

The case, which has opened the floodgates for similar claims, could ultimately cost the government hundreds of millions of pounds.

Charity battles Customs over lost VAT

European Motor Holdings, another major dealership, received a total of £12.2m, including interest, while Inchcape, one of the biggest dealerships in the UK received £37.5m.

A spokesman for Inchcape said any dealership with the relevant paper-trail would be able to reclaim VAT.

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