Cancelling personal car lease agreement early - should I be charged VAT?
I am cancelling my personal car lease agreement early. I have been told that I am being charged 50% of the outstanding rentals + VAT on that amount. Should I really be charged VAT on a service that I am cancelling?
Asked on 6 November 2012 by James George
Answered by
Honest John
Yes. VAT is due on any payment that it applies to, even if it's a cancellation charge.
Tags:
selling
lease cars
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