That is very badly worded but I see from how that’s written why it’s caused confusion.
If you have a £750 AP car ordered on 1st May and it’s handed over on 10 May you would pay £750 to Motabilty. No VAT as it’s before 1st July.
If you have a £750 AP car ordered on 1st May and it’s handed over on 2nd July you will pay Motability £750. Motabilty will keep £625 and pay HMRC £125; VAT needs to be paid as handover is after 1st July but the customer won’t pay any more to Motability.
The terms they refer to very clearly state that VAT will be applied based on the date of handover – I’ve posted the exact text above.
