The RMI claims to have dissuaded the HM Customs and Excise from unnecessarily imposing an extra £70m VAT tax burden on the motor retail industry. VAT inspectors had argued that dealers should be charging VAT when supplying Vehicle Excise Duty with new vehicles – particularly as part of an 'on the road price'.

The RMI had argued that the cost of the change would have been too much for the industry to bear – and it would also have run against current business practices.

The Customs and Excise has now produced a set of guidelines which, if followed by dealers, will allow them to continue to supply VED with vehicles without falling foul of VAT rules.