Name the business, not just the person
Enter the buying dealership's trading name and address in Buyer. If the buyer is a limited company, use the company name. The person collecting the car can go in the contact details. HMRC's list for margin scheme invoices asks for “the buyer's name and address, or that of their business”, so the business name is what belongs on the invoice.
The buyer needs your stock book number
HMRC's guidance on margin scheme records says a dealer's purchase invoice must include the item's unique stock book number if they bought it from another VAT-registered business. When you sell under the margin scheme, your sales invoice is their purchase invoice, so fill in Stock reference in the Vehicle step. It prints in Section 2 as Stock no.
Choose the VAT treatment that matches how you bought the car
- Margin scheme if the car qualified when you bought it. The buyer receives a margin scheme invoice with no separate VAT and cannot reclaim VAT. See the margin scheme invoice guide.
- Standard VAT if the car is VAT qualifying. The buying dealer will usually want this, because they can reclaim the VAT and sell the car on as VAT qualifying. See the VAT qualifying guide.
Describe it as a trade sale in the terms
A consumer buying from a dealer has rights under the Consumer Rights Act that GOV.UK says cannot be restricted or taken away. Those rights are written for consumers. A sale between two businesses is governed by the contract you agree, so say what that contract is. Put the agreed terms in Payment → Invoice details & notes → Warranty & terms. A typical trade sale records that the buyer is purchasing in the course of business, has inspected the vehicle, and accepts it in its current condition with no warranty given by the seller.
Wording does not change facts. Describing the mileage, history or condition inaccurately is still a misdescription, whoever the buyer is. Record what you know and what you have disclosed.
Collection, payment and the V5C
- Payment. Record the payment received with its method. Trade sales are often paid in full before collection, so the receipt page will show a zero balance.
- Collection date. Enter it so both invoices carry the date the car changed hands.
- V5C. Notify DVLA of the sale to a motor trader in the usual way. DealerSlip does not contact DVLA.
- Download the pack. The sales invoice is the buying dealer's purchase record. Keep your copy with your stock book.
Common questions
Do I need a signature from the buying dealer?
The invoice carries signature lines for the dealer and the buyer. Whether you use them is up to you and the buyer; many traders sign at collection.
Can I add “trade sale” to the invoice title?
The document title stays Sales invoice. Add the trade sale wording in Warranty & terms, where it prints in Section 5.
Is a trade sale the same as a part exchange from a dealer?
No. A part exchange is a vehicle you buy in. For that, use the Part exchange fields so DealerSlip produces a purchase invoice. See the part-exchange purchase invoice guide.