FAQ: What is the second-hand motor vehicle payment scheme?

The second-hand motor vehicle payment scheme is a new scheme that is being introduced on 1st May 2023. It will replace the VAT margin scheme for second-hand vehicles that you buy in Great Britain, move to Northern Ireland and then resell in NI or EU. Until the new scheme is introduced, you should continue to follow the current guidance on sales of second-hand motor vehicles in Northern Ireland.

The scheme also applies to EU businesses purchasing from mainland GB - if you do not have a business establishment in the UK there will be a different process for making a claim. You will be able to make your first claim from August 2023. Further guidance about the process for making a claim will be published in due course.

For more information about the second-hand motor vehicle payment scheme read our full detailed article on the Trade Assist Hub.