[ad_1]
The NFDA welcomes the breakthroughs made by the UK government and the European Union with the Windsor Framework.
Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen announced that a new agreement has been made between the UK and the EU over the post-Brexit Northern Ireland Trade Deal.
Sue Robinson, chief executive of the National Association of Franchise Dealers (NFDA), said: “We are encouraged to see that the UK government and the European Union have made a breakthrough regarding Northern Ireland’s Brexit impasse.
“This is obviously very important to NFDA NI members and in the coming weeks we will be looking at the details of the Windsor Framework to understand the full implications.
“NFDA NI will continue to support franchised dealers in Northern Ireland, working closely with the UK government and the Northern Ireland Assembly to ensure that our members can trade effectively between Northern Ireland, the UK and the EU.”
In January 2021, the Government reinstated the margin scheme to help avoid a 20% increase in the price of cars sourced in the UK and resold in Northern Ireland.
The move has been requested by dealer groups and the National Association of Franchise Dealers.
“Following our significant lobbying efforts, it is very positive that the Government has confirmed HMT and HMRC will reinstate the margin scheme which will avoid an immediate price hike for thousands of used vehicles and the resulting detrimental impact on dealers and consumers in Northern Ireland. as well as Great Britain”, said Sue Robinson, chief executive of the NFDA.
The NFDA had previously written to the HMRC and MPs to highlight that under post-Brexit EU VAT rules, the selling price of most used vehicles in Northern Ireland (NI) will be subject to a 20% increase for stock purchased in Great Britain (GB).
The margin scheme allows dealers of used goods, such as vehicles, to pay VAT based on the profits made from the resale of the goods, not the entire value of the goods. This benefits consumers as it makes used cars more affordable, since the amount of VAT they pay is much less than the 20% they would pay for a new vehicle.
[ad_2]
Source link
