Motor vehicle incentive payments (MVIPs) are payments made by a motor vehicle manufacturer (this includes distributors and importers) to a motor vehicle dealer under certain circumstances.
Third party MVIPs are payments made by the manufacturer to the dealer for the sale of a motor vehicle.
This information relates to third party MVIPs resulting from floor plan arrangements (bailment), which motor vehicle dealers use to finance their trading stock.
Third party MVIPs can have GST and luxury car tax (LCT) consequences for manufacturers, dealers and customers.