# The Value Added Tax (Cars) (Amendment) Order 1998, Note: Explanatory note


(This note is not part of the Order)
This Order, which comes into force on 18th March 1998, amends the Value Added Tax (Cars) Order 1992 (S.I. 1992/3122) (the “principal Order”).
Under the principal Order, VAT on eligible goods may be charged by reference to the dealer’s profit margin rather than on the full selling price. The effect of article 4 of this Order is that any number of transfers of a business as a going concern will not alter the purchase price of the goods for the purposes of the margin scheme.
Article 3 updates references to Manx legislation.
Article 4 amends article 8(5)(a) of the principal Order to provide that for the purpose of determining the profit margin on the sale of a used motor car, the purchase price of the car remains unchanged by the transfer of a business as a going concern through any number of such transfers.

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Source: https://www.legislation.gov.uk/uksi/1998/759/note (the official version)
Page: https://openlegislation.uk/value-added-tax-cars-amendment-order-1998/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.