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VAT Free question

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Right,

can everyone stop panicing,

Below is the official line from Skoda Uk which was issued to all dealers on 30/06/2010.

If your chosen dealer doesn't know this, then may I suggest you find a dealer who does! There's a very good one in Salford!

Terms and conditions

Fabia, Roomster and Octavia models

Applies to orders placed up to and including 31 December 2010

Vehicles arriving in the UK before 14 December must be delivered to the customer in 2010

Cars arriving in the UK prior to 14 December but registered after 31 December will not qualify for the additional VAT support

All vehicles landing in the UK before 31 December must be registered by 14 January

Exclusions

Fabia vRS

Vehicles detagged after 31 December 2010

VAT price protection on all models

Because 2010 has been such a successful year so far, lead times on popular models have been extended. We are looking at this problem and are confident that the situation will improve over the next few weeks.

So that you can sell with confidence, we will protect retail customer orders placed by 30 September 2010 from the 2.5 per cent increase in VAT, if the car cannot be delivered to the customer by 31 December 2010.

Terms and conditions on VAT price protection

All models qualify

Applies to orders taken by 30 September 2010

Order types 0 and 1 only

Car must be registered and handed over (sold) in SLi wthin 14 days of landing in the UK

All cars meeting the above criteria will receive an additional bonus of 2.1 per cent to cover the cost of the VAT increase

Vehicles arriving in the UK before 14 December must be registered and sold before 31 December. Cars arriving in the UK before this date but registered in January will not qualify for the additional VAT support

Exclusions

Cars detagged after 1 January 2011

Any car not meeting the above criteria

Orders placed from 1 October 2010 onwards

Any customer order placed from 1 October 2010 onwards will not be protected from the VAT rise.

It is therefore the responsibility of the selling retailer to ensure that the customer is aware that any factory order placed after 30 September cannot be guarateed to be delivered in 2010 and should be sold to the customer at the higher rate of VAT. Fabia, Roomster and Octavia models will still qualify for the 17.5 per cent support rate

Exclusions

Cars detagged after 1 January 2011

Any car not meeting the above criteria

Orders placed from 1 October 2010 onwards

Any customer order placed from 1 October 2010 onwards will not be protected from the VAT rise.

It is therefore the responsibility of the selling retailer to ensure that the customer is aware that any factory order placed after 30 September cannot be guarateed to be delivered in 2010 and should be sold to the customer at the higher rate of VAT. Fabia, Roomster and Octavia models will still qualify for the 17.5 per cent support rate.

Edited by Ants

Why would you expect 20% off when it's clearly an offer for 17.5% off which just so happens to be the current VAT rate in the UK so has been offered as the equivalent of no VAT? or have I missed the point? As it has always been pretty clear to me.

Why would you expect 20% off when it's clearly an offer for 17.5% off which just so happens to be the current VAT rate in the UK so has been offered as the equivalent of no VAT? or have I missed the point? As it has always been pretty clear to me.

Because the deal is being sold as "VAT free" which as has been pointed out several times is not strictly true, it's a 17.5% discount (with the VAT still payable).

I can see October onwards being very slow for these Skoda models.

Right,

can everyone stop panicing,

...

Orders placed from 1 October 2010 onwards

...

Fabia, Roomster and Octavia models will still qualify for the 17.5 per cent support rate.

If SUK said this on their website there wouldn't be any issue, and people could order with confidence.

This is NOT a VAT free offer, but a 17.5% discount, so it is not a problem when you receive the car, it is when you order (I have a sales order with the values of what I am purchasing)

The company I work for is also doing VAT free offer, but we are just taking 17.5% off.

The problem will arise for orders after 4th of Jan, BUT note that the price of the car has gone up by some £500 and although this was done in May, I am sure it was down with the consideration of an impending vat rise.

Think how sales would plumet below the scale if all of a sudden tehy were to add 20% to the price of the car, it would be goodbye Skoda.

I ordered the my Octy Vrs 2 weeks ago, VAT free & 0% 2yr finance.

I watched the salesman calculate the price, & he did as follows.

He took the price from the brochure quoted before vat added, he did the same to the options I requested, totaled this up & arrived at the final price.

I have my build week as the last week in Sept, with expected delivery mid October.

Hope this helps make your mind up.

  • Author

Cheers. My mind is made up. Ordering my car in the morning. Even my supplying dealer sales manager has posted on this thread to put my mind at rest! Lol :)

Blue, black, yellow or red then Ed? :giggle:

  • Author

Actually red is growing on me now. Not seen a red un yet!

I ordered the my Octy Vrs 2 weeks ago, VAT free & 0% 2yr finance.

I watched the salesman calculate the price, & he did as follows.

He took the price from the brochure quoted before vat added, he did the same to the options I requested, totaled this up & arrived at the final price.

I have my build week as the last week in Sept, with expected delivery mid October.

Hope this helps make your mind up.

You're lucky you have been given the build week information. I ordered on 4th July and have not heard a peep from my dealer, Emailed him last week to ask for any updates and he said he didn't have anything for me yet. Skoda UK can't help me so far, as they need the actual factory order number which has not been supplied... I will give it a couple of more weeks and then email the dealer again...

Blue, black, yellow or red then Ed? :giggle:

go on, do it, be brave......yellow....... B)

Edited by studmuffin

Why would you expect 20% off when it's clearly an offer for 17.5% off which just so happens to be the current VAT rate in the UK so has been offered as the equivalent of no VAT? or have I missed the point? As it has always been pretty clear to me.

Yep, you have missed the point.

The wording in the offer is that the offer only applies to cars delivered before 31st December.

Because of this the original poster was worried that if his car was delivered after that date he would be liable for 20% more than he would if it were delivered before the end of the year (as the 17.5% discount would end and VAT would go up by 2.5%).

The original question wasn't whether the dicount would be increased to 20%, rather if it would be removed completely and therefore the price he'd have to pay would go up by 20%.

It was never made clear in any Skoda small print what would happen if the car was ordered but wasn't delivered due to long lead times.

Fortunately it has now been made clear by the posting of the Skoda dealer release above.

Yep, you have missed the point.

...

Fortunately it has now been made clear by the posting of the Skoda dealer release above.

Absolutely. But I would still want it in writing from the dealer rather than relying on an internal e-mail, especially given that the SUK website currently states differently.

It is, however, completely impossible that Skoda UK will not continue some equally significant discount unless they wish to exit the UK market (unlikely). How about 2.5% price rise and 20% ("VAT-free") discount?

Absolutely. But I would still want it in writing from the dealer rather than relying on an internal e-mail, especially given that the SUK website currently states differently.

It is, however, completely impossible that Skoda UK will not continue some equally significant discount unless they wish to exit the UK market (unlikely). How about 2.5% price rise and 20% ("VAT-free") discount?

Just a minor point....surely a discount equivalent to removing 20% VAT is not 20%....Its 20/120 x 100 = 16.67%.

I wonder if Skoda would be better off withdrawing the promotion and realigning their "list" prices down to some extent.

If they continue the offer indefinitely won't a significant slice of potential customers be lost at the first hurdle because they are put off by the prices published in car magazines (that nobody actually pays even if they don't haggle )?

I wonder if Skoda would be better off withdrawing the promotion and realigning their "list" prices down to some extent.

If they continue the offer indefinitely won't a significant slice of potential customers be lost at the first hurdle because they are put off by the prices published in car magazines (that nobody actually pays even if they don't haggle )?

I wish they would just lower their list prices as company car tax is calculated against list price not the real price!

Steve

We still dont know what colour he has ordered emoticon-0140-rofl.gif

Hi all

Of course the car is not VAT free, there is just an equivalent discount to equal what the VAT would be. so currently use the 40/47 th to get back to the VAt-able price, or 7/47 is in the VAT component currently.

We order a Octavia last weekend and were told the Skoda UK would continue to discount back to the 40/47 th of the full price up until the end off September I recall and then it would be less because they would add on the 2.5% (but on the VATable amount of course) and then you would only get the 7/47ths off this higher amount as that is what SUK would have to pay in VAT after 4th Jan 2011.

So order before October if you want to get the maximum benefit concluded and especially as you may have to wait 4-5 months for the car anyways due to backorders!

Edited by lol

  • Author

We still dont know what colour he has ordered emoticon-0140-rofl.gif

I went for Candy White! :p

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