In April I ordered a new FL Fabia, my third. It is due to ship from the factory around 22nd June, so I guess it will get to the dealer at the end of June.

The (emergency) budget is due just before this and I am wondering whether I will be stung for any VAT increase that may occur. I know it depends on what date any increase may be effective from but history shows that budget VAT increases usually happen quickly.

Anyone have a take on this or had the situation with Skoda before? I know the Fabia FL is currently on a VAT free deal but all that means is Skoda are reducing the price by that amount and VAT is of course still paid.

I'd be prepared to pay the full cost before receiving the car as I have had two previous Skoda''s from my dealer, who I trust completely.

I would imagine as long as you dont make any changes to the order you agreed the sale at the current 17.5%. The VAT increase is just the media guessing. Im willing to bet it wont happen.

We test drove a Fabia today today and dealer said even if I order today, if VAT goes up to say 20% then we'll have the pay the 2.5% difference as Skoda can't afford it.

Darn.

We test drove a Fabia today today and dealer said even if I order today, if VAT goes up to say 20% then we'll have the pay the 2.5% difference as Skoda can't afford it.

Darn.

Tell them if they want the business that the price you sign up for is the price you are paying.

Business trick from vat change back at Xmas. Goods were invoiced to customer before vat change so receiver did not get hit for increase from 15 to 17.5%

Get the car invoiced to you so that it goes on the books @ current rate, that way you will not pay any extra charge.

We test drove a Fabia today today and dealer said even if I order today, if VAT goes up to say 20% then we'll have the pay the 2.5% difference as Skoda can't afford it.

Darn.

How come Skoda could afford the vat free offer then? A change in vat would only make £250 difference on a ten grand car.

How come Skoda could afford the vat free offer then? A change in vat would only make £250 difference on a ten grand car.

They took the discount out of the dealers margin I am told.

Skoda UK and the dealer shared the loss, but sold extra cars, so made money! Normal practice is to pay the agreed sum, once the deposit is payed and the order taken. Use a credit card to pay the deposit, it will give you much greater protection as they will be jointly to blame if anything falls foul! (even with a small deposit, hey will be liable for the whole sum).

The "VAT free" offer is (as explained in the small print) a discounted price equivalent to the current VAT element. When you order your car, you sign a contract - I would think that guarantees the agreed fixed price - however the small print may allow for "Force majeure" which is extraordinary events beyond reasonable control. In that case they may ask you to pay the difference cause by an "unforeseen" VAT increase.

There is no manipulation of VAT invoices etc as suggested by an earlier post - its illegal - the tax point is the time of supply and not the invoice date.

"The tax point, or time of supply, is the date when a sale is considered to take place for VAT purposes. There are rules that tell you if this is the date of the actual supply, the date of the invoice or some other date, depending on the circumstances. It's important to put the right date for the time of supply on your invoice, because both you and your customer will need this information to make sure the VAT on the invoice is accounted for on the right VAT Return."

Also told by a dealer that in the event of a VAT change, the "VAT free" offer would be withdrawn but that their expectation was that it would be replaced with an alternative which offered an equivalent level of discount to the 17.5% currently offered.

Business trick from vat change back at Xmas. Goods were invoiced to customer before vat change so receiver did not get hit for increase from 15 to 17.5%

Get the car invoiced to you so that it goes on the books @ current rate, that way you will not pay any extra charge.

I too was going to suggest an invoice before the budget with 30 or 60 day payment terms so that you can pay on collection.

I too was going to suggest an invoice before the budget with 30 or 60 day payment terms so that you can pay on collection.

That is a "pro forma" invoice and is not a valid VAT invoice under HMRC rules.

A quote from thisismoney.co.uk 14/05/10

They forecast a rise to 20%, which would add two-and-a-half pence to a litre of unleaded fuel, seven pence to a pint of lager and £382 to a new Ford Focus.

This would yield £11.5bn a year to the Treasury at a cost to the average family of £425 a year.

However it is unlikely to be an early move since it would depress consumer spending and risk a double-dip recession.

Senior Treasury sources insist there are 'no plans at all' to increase VAT in an emergency Budget due within weeks.

As I'm due to collect a new Fabia at the end of June lets hope they hold off VAT increases for now, although I think it will happen before the end of next year which is the timeline predicted by some of the press.