UK Vat Reclaim..

cbyrne

Guys,

anyone know what forms you have to fill out to get VAT back from UK dealer? Long story short, my mates parents bought a nearly new 5 series from BMW dealership and had to pay UK VAT, however when paying VRT on it also had to pay VAT (as less than 6 months) but they are entitled to the UK VAT back, dealer agrees etc. however dealer keeps saying they are waiting for some form from the powers that be there before they can repay the VAT paid to them.. but its nearly two months now.. surely this is just some form that dealer has to get them to sign to say they exported the car??

Anyone any experience of this??

Henry Ford III

I have a bad feeling about this one....I thought UK VAT was not recoverable.

astraboy

If the car is not new, they do not have to pay VAT in Ireland if they have already done so in the UK. There is no double taxation in the EU, so if you pay VAT in the UK on anything, you do not pay it here. You would still need to pay VRT though.

Henry Ford III

astraboy wrote:

If the car is not new, they do not have to pay VAT in Ireland if they have already done so in the UK. There is no double taxation in the EU, so if you pay VAT in the UK on anything, you do not pay it here. You would still need to pay VRT though.

Under 6 months and 6000 miles I think irish VAT is levied.

astraboy

Henry Ford III wrote:

Under 6 months and 6000 miles I think irish VAT is levied.

You learn something new every day! So if the car is registered in the UK less then 6 months or has less then 6000 miles you pay Irish VAT? Why then can the person not get a refund on the UK vat if they payed it, or even easier just let the person pay VAT in the UK when they buy, and not charge it here? Why o Why is car ownership so confusing in this country?!!

Henry Ford III

I coul;d be wrong astraboy, but fear for the op's sake I'm not.

bazz26

Maybe a phone call to the UK Revenue or DVLA will give you an accurate answer?

Traumadoc

Was there not an issue a few years ago when people were buying new cars in NI '"2nd hand" and importing them to the south in an attempt to avoid VAT so the 6month rule was introduced.

MrPudding

I dont think there is anything to claim back. I bought a second hand bike in the uK last year. There is a form that has to be sent to the inland revenue but the dealer does not pass any VAT to them, the form seems to be more about tracking how much money the dealer is making, presumably to keep an eye on income tax and corporation tax and such.

MrP

ciarsd

From Ros.ie

13. When is VAT chargeable and payable?

In the case of a new means of transport i.e. land vehicles (excluding agricultural tractors) that were supplied six months or less after the date of first entry into service or have travelled 6,000 Kilometres or less, VAT is chargeable and normally payable at the time of registration in the State, even where there is evidence, e.g. an invoice, that VAT was paid in the country of purchase.

VAT is also chargeable and normally payable at the time of registration in the State of vehicles (both new and used) that are imported from outside the fiscal territory of the EU.

MrPudding

ciarsd wrote:

From Ros.ie

13. When is VAT chargeable and payable?

In the case of a new means of transport i.e. land vehicles (excluding agricultural tractors) that were supplied six months or less after the date of first entry into service or have travelled 6,000 Kilometres or less, VAT is chargeable and normally payable at the time of registration in the State, even where there is evidence, e.g. an invoice, that VAT was paid in the country of purchase.

VAT is also chargeable and normally payable at the time of registration in the State of vehicles (both new and used) that are imported from outside the fiscal territory of the EU.

We know about that, infact the OP has already coughed up. The question is whether or not he can claim the VAT back from the UK.

If it had have been a new car he could have bought it ex VAT, I don't think he can claim VAT back though.

This requirement of the gov to take VAT on new and nearly new cars annoys me almost as much as VRT itself. It is blatently against EU law which states we can chose to pay the VAT in the country where we purchase the item or in the country where we are going to use it.

Fcuking thieving scumbags.

MrP

ciarsd

MrPudding wrote:

We know about that, infact the OP has already coughed up. The question is whether or not he can claim the VAT back from the UK.

If it had have been a new car he could have bought it ex VAT, I don't think he can claim VAT back though.

This requirement of the gov to take VAT on new and nearly new cars annoys me almost as much as VRT itself. It is blatently against EU law which states we can chose to pay the VAT in the country where we purchase the item or in the country where we are going to use it.

Fcuking thieving scumbags.

MrP

Just passing on any relevant (backed up) info. I can find for the OP - can't find anything on UK VAT refund for this scenario however.

MrPudding

ciarsd wrote:

Just passing on any relevant (backed up) info. I can find for the OP - can't find anything on UK VAT refund for this scenario however.

The thing I hate about the internet is the lack of inflection. I wasn't telling you off. :eek:

MrP

cbyrne

Hi guys, well i'll let you know how it plays out, but the calls to the dealer basically were that they acknowleged that UK Vat will be paid back but they jut need to prove to the Inland Revenue that the car was exported. AFAIK they have not paid the VAT to the revenue as part of their VAT returns, they basically Zero Rate it, but they need to have something (and thats the piece that my mate isn't sure what it is) to prove car was sold out of the UK.
According to them its common, but they basically 'hold' onto the Vat until car is exported and then refund it to seller, they said that they need to do this as if it turned out that car was not actually exported and they hadn't charged VAT then they would be liable.

Darando

MrPudding wrote:

This requirement of the gov to take VAT on new and nearly new cars annoys me almost as much as VRT itself. It is blatently against EU law which states we can chose to pay the VAT in the country where we purchase the item or in the country where we are going to use it.

I wonder has anyone ever brought this to the EU - surely it is a blatent rule breaker - I thought that this is illegal and would be within the remit of the EU laws (although tax law is a sticky subject in the EU).

Love to see someone bring this one to court!!!

AA ever said anything on the subject?