Contract Hire & Funding Customers
The Chancellor has announced that with effect from Friday 1st January, 2010, the standard rate of VAT will return to 17.5% from its reduced rate of 15%.
This change is indefinite unless further changes are announced by the Chancellor in the future.
 
Monthly Rentals
Leasing transactions on invoices dated 1st January 2010, will be subject to VAT at 17.5%. Some exceptions exist where the VAT rate will follow that charged on the original transaction, for example financial amendments and re-contracting.

  Where applicable our invoice will display two standard rates of VAT (15% and 17.5%)

  Where a vehicle is incurring rentals for the first time, all rentals will be charged at the new rate of 17.5%

  Any credits due will be at the rate of VAT which applied to the original invoice

  The VAT summary on the final page of our invoice has been extended to include all standard rates of VAT

Monthly Rentals (Prolease : Account nos. = letter plus 5 digits)
Leasing transactions on invoices dated 1st January 2010, will be subject to VAT at 17.5%. Some exceptions exist where the VAT rate will follow that charged on the original transaction, for example financial amendments and re-contracting.
Sue Styles, Collections Dispute Management - Phone: 01793 895 822 - Email: susan.styles@arval.co.uk
In order to facilitate prompt payment of invoices, this service will be free of charge until the end of March 2010.
Lease Purchase / Contract Purchase Vehicles
For these products the invoice is raised at the start of the contract and VAT will be applied at the rate applied by the dealer. This may be 15% or 17.5%.
Regulated Agreement Customers (Including Personal Contract Purchase and Personal Contract Hire)
Arval will be writing to regulated customers under the rules of the Consumer Credit Act to advise you of the increase in the standard rate of VAT from 15% to 17.5% and how it affects you.