Statement by North Antrim MLA Jim Allister:
“I have today written to Her Majesty’s Revenue and Customs seeking urgent clarification on the VAT arrangements which will prevail after 1st January 2021. I have been approached by a number of used car dealers, and indeed businesses people who work in other sectors, who are most anxious about the situation which has been mooted.
“At present used car dealers pay VAT on the profit margin on resale of a car purchased from a non VAT registered customer. Now, it is suggested that under the margin scheme it is suggested they will have to pay VAT on the whole sale price. HMRC urgently need to explain if this is correct.
“We also need clarity on whether stock already in hand by 31st December 2020 will equally fall under the margin scheme.
“Finally, what happens with the individual who personally goes to Great Britain and buys a car?
“There is great alarm among business people so I have sought early clarification.
“The fact that questions of this nature are even being asked underscores the profound ramifications of the Irish Sea border and the scale of the betrayal.”