Readers’ forum: VAT on used cars shipped from GB to NI

One of my clients is a second-hand car dealer based in Manchester and has just arranged to sell three vehicles to a dealer in Northern Ireland.

I am very confused about VAT because – as I understand it from a colleague – there is different VAT treatment in each case which seems strange.

The first vehicle was purchased in GB in May 2023 for £12 000 ex VAT and there was no interest from any GB customer – hence why it is was sold to the NI dealer for £12 500 including VAT in September ie at a loss. The second vehicle was purchased in GB in March 2023 before the new VAT rules took effect on 1 May 2023 for £10 000 ex VAT and was sold for £15 000 including VAT again in September. The third vehicle was purchased in GB in July 2023 for £5...