Where you paid VAT when bought abroad (EU)

estresao · Oct 1, 2014

Hi,

Did someone import a brand new Cali from abroad, from an official VW dealer in the European Union?

We have to pay VAT at UK, but I'm not pretty sure whether can we buy with no VAT abroad.

I've heard that we, not as a company but as a regular citizen, have to buy paying VAT, and then ask the foreign country government to return back it. I think that's a huge disadvantage for us because in this case we have to convert pounds to euros to pay, and then euros to pounds once we get returned back, paying commissions for each transaction (that could be a total of a 6% or more).

Do someone have info about that?

Thanks a lot

Romke · Oct 1, 2014

As far as I know you pay VAT in the country of purchase. In the (distant) past you had a choice - no more!

mister_blobs · Oct 1, 2014

According to europa.eu

New cars

When you buy a new car in another EU country intending to take it back with you to the EU country where you live, you are exempt from paying VAT in the country where you bought it.

You will have to pay VAT in the country where you register the car.

A ‘new car’ means one which has been driven fewer than 6 000 km or is less than six months old.

See http://europa.eu/youreurope/citizens/ve ... dex_en.htm

I have imported new cars from EU to UK (this was 15 years ago) and the system then was that you bought in the EU country of choice without paying VAT, got transit plates from the dealer plus your own insurance, drove to the UK and registered the vehicle immediately with the local VRO who would then inform HMRC and HMRC would send you a bill.
As I say this was 15 years ago and the system may have changed since then (it was probably customs & excis not HMRC) and many (all?) local VROs have been closed.

See also: http://www.hmrc.gov.uk/vat/sectors/cons ... hicles.htm
and : https://www.gov.uk/importing-vehicles-i ... k/overview

estresao · Oct 1, 2014

Thanks mister_blobs, what you say it's what I read and looks like that's that way at this moment. I started having doubts after reading another forum's comments about that (some Spanish that want to buy at Germany)

Also I was told yesterday by a Spanish VW dealer they cannot sell me a brand new Cali with no VAT. I've insisted him and now they are "investigating" this fact.

Let's see.

I've found also very interesting what you said about VRO... What VRO is? I thought the process was pay at HMRC and then register at VLDA, but actually I'm procrastinating with this process research because the buy process is taking veeeeeeeery long and consuming lot of energy.

mister_blobs · Oct 1, 2014

Yes VRO is Vehicle Registration Office but I think they no longer exist. I think that the system is now that you tell HMRC and then register the vehicle with DVLA.

You need to find a dealer who is used to providing vehicles for export - it will make your life much easier because they will give you all the paperwork that you need. My advice would be to keep all documentation to prove that you brought the vehicle back - fuel receipts and ferry tickets/bookings.

cadger · Oct 3, 2014

It doesn't really mater were you pay the vat as long as in any euro country with the new NOVA system the vin number will tell if the vehicle is vat paid or not,and will have to be paid before you get it registered in uk,but as vat vat is 19%in Germany and as in euros there might be a saving to pay the vat in euro

estresao · Oct 3, 2014

I guess you can pay anywhere providing the vehicle is older that 6 months and have more than 6000 miles (or kilometers?)

Goldie · Oct 4, 2014

I think that you will find that you have to pay VAT in the EU if you buy it in the EU and use it for more than six months unless a non-EU resident/citizen. I bought my Cali in UK VAT free and exported to NZ. I had to export it with six months.

The age of the vehicle or mileage does not matter, it needs to be 'VAT qualifying', i.e. a vehicle that has NOT previously had VAT paid on it. This means you can buy a dealer demonstrator that has been registered but no VAT paid. Look at the adverts, a lot say VAT qualifying. Mine was a year old, but only had 200 miles on it.

Buying abroad and saving one or two percent VAT may be a false economy. The VW warranty is only two years and the extra third year is VW UK warranty I understand.

Andy