Zero VAT Rated Proposals

Please note all Zero Vat Rated (ZVR) proposals will refer to manual underwriting. A customer may only have ONE ZVR supplied vehicle every three years from 01 April 2017, this is across all brands of vehicle suppliers, and not just one with us and one with another lender.

For further information on ZVR proposals, please click here. Please note that this policy and procedure is not BMW Group Financial Services internal policy but is a procedure set out by HMRC. This is not an open negotiation with BMW Group FS and you must refer any queries relating to exceptions to the HMRC using the telephone number below.

HMRC Contact Number: 0300 123 1073
 

HMRC GUIDELINES ON ZVR PROPOSALS.

As of the 01 April 2017 there are significant changes to the HMRC guidelines these are:

• The introduction of a limit on the number of vehicles that can be purchased under the relief, with an eligible individual now being able to purchase only one vehicle that meets the qualifying conditions every 3 years;
• Making customer eligibility declaration forms mandatory;
• Making it mandatory for suppliers to send HMRC information about their zero-rate supplies; and
• The introduction of a penalty that will apply to any person that provides an incorrect customer eligibility declaration form.

For more information on the HMRC guidelines, please click here.
 

ADAPTATIONS.

This section is for quick reference and taken from the HMRC Policy.

The following are examples of adaptations for the carriage of a disabled wheelchair user:

• Swivel seat;
• Hoist to lift a wheelchair into or onto the vehicle;
• A box for the wheelchair, which is fitted to the top or the back of the vehicle;
• Adaptations that enable a wheelchair user to drive the vehicle, such as a push/pull brake and accelerator, hand controls or other aids that operate the primary driving controls; and
• Infra-red control unit that operates the secondary controls.
   

The following are not adaptations for the carriage of a disabled wheelchair user:

• The fitting of a roof rack or standard roof box;
• The attachment of a trailer to the back of a vehicle; or
• The fitting of automatic transmission because they are for general use and not specifically designed for disabled people.
   

ADDITIONAL INFORMATION REQUIRED.

Before we request the additional information, we will call you to discuss the proposal and explain the following.

HMRC Customer Declaration form (VAT1615A) must be fully completed and signed by the applicant. This can be found here.

• Details of the modifications that will be undertaken. These must be permanent and substantial, to enable the user to travel in the vehicle on a regular basis.
• Copy of the invoice detailing the work to be carried out. This is normally from a third party company and must be invoiced to the dealership and detail VAT cost at current rate.
• Vehicle Sales Invoice which must show the adaptation cost in the breakdown to the customer, to ensure that they are able to see the adaptation has been completed. This is required before an acceptance can be given.
• If the proposal is a Select product and dependent on the modification, an additional disclaimer letter maybe required.
• If there is an appointee applying for the finance then we require the DWP form. The customer will provide this.
• If the customer is in receipt of Disability Living Allowance, please provide both parts of form DLA404.
• A copy of the Driver's driving licence.

Please note we would not request all of the additional information if we were not looking to proceed, however we are required by HMRC to have this documentation before formally giving an acceptance.
 

CUSTOMER DECLARATION FORM.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/605061/VAT1615A.pdf
 

**Please note that this policy and procedure is not BMW Financial Services internal policy but is a procedure set out by HMRC. This is not an open negotiation with BMW FS and you must refer any queries relating to exceptions to the HMRC using the above telephone number.