THE BVRLA is advising members to consult an HMRC paper on the VAT treatment of early termination fees.
Following a recent judgement in the Court of Justice of the European Union, VAT is now liable.
“Most early termination and cancellation fees are therefore liable for VAT. This is the case even if they are described as compensation or damages,” says the HMRC.
Further information from the BVRLA.
Automotive and fleet writer for Broker News
