Confused about VAT on second hand import?

zod

I've seen a second hand car advertised in the UK with no VAT. Here is the exact advertisement :

"To save you money we are offering this VAT Qualifying car to EU Residents to export from the UK or Business Users and UK Residents. Our main customer base is the Irish Republic plus all other EU states and UK VAT registered businesses plus UK private buyers

What you pay is dependent on your location within the EU, so, how does it work? In 1995 the UK VAT Office introduced a system allowing business users to reclaim the VAT on new cars, when the car is sold VAT must be accounted for in the sale, we simply search for the few cars that have this status and offer them to you at a fantastic saving either by exporting them VAT free or allowing UK business users to reclaim the VAT

Q. I live in County Cork, Southern Ireland, how can I buy this so cheaply?
A. Easy, we do not have to charge VAT on exports, if you reside in the Irish Republic or any of the EU states your winning bid is exactly what you pay."


They might be able to sell it SANS UK VAT.. but would I have to pay Irish VAT on import???

BTW its 3 years old with 30K on the clock - if that makes a difference.

Thanks

seamus

You will have to pay VAT *and* VRT here. Not worth it.

zod

How do customs know that VAT hasn't been paid on the car?

lomb

customs here dont know anything, id say ud just pay the vrt, they wont even understand what a vat free car is....they do charge vat for outside eu imports. but for a car with uk tax plates i doubt it. the other thing is legally they shouldnt sell u that car vat free unless u have a vat number, so if they do sell it to u , that their tough luck and not urs.

lomb

zod wrote:

How do customs know that VAT hasn't been paid on the car?

They dont, the vendor should charge vat on the value if exporting within the eu, and no vat number is present. so if they sell it vat free then they will have to pay the inland revenue later. all sounds dubious to me.mayb they are just ropey crap cars. vat fraud is something that wouldnt really happen with regular checks and hugh penalties in the uk.

zod

lomb wrote:

They dont, the vendor should charge vat on the value if exporting within the eu, and no vat number is present. so if they sell it vat free then they will have to pay the inland revenue later. all sounds dubious to me.mayb they are just ropey crap cars. vat fraud is something that wouldnt really happen with regular checks and hugh penalties in the uk.

Thanks .. are you saying that irrespective of whether the car is for export or not the Seller should always charge VAT - and the onus is on the seller.

Is there any way the UK revenue could chase me for the VAT later?

Bluehair

But isn't VAT only applicable on new cars?

He's looking at a 3yr old with 30k miles. From the 'importing from the UK' sticky;

(3) You will have to pay VAT on all cars under 6 mths old or less than 6,000kms even if they are from within the EU.


So unless it falls under the above there's no VAT just VRT to pay anyway right?

kluivert

Vat is payable on Cars purhased in the EU only once, thats when it is bought from the dealership. No vat is charged by customs after that only if the car is being imported outside the EU.

As for the car you refer to i think the seller is accounting for his Vat incorrectly. As the car is greater than six months old or 6000 miles then no vat is charged for cars imported into ireland.

You as the purhcaser Vat is not any issue, even if the seller is a registered vat trader, as all exports on his behalf should be Zero Rated and the seller will have to include Zero Rated sales in his annual return of trading details for his vat year end.

Anyone buying from the North or the UK should never pay UK Vat full stop.

Cyrus

exactly, you only pay VRT (which is enough )

odie

Found this info here on the VAT issue

http://europa.eu.int/youreurope/nav/en/citizens/factsheets/pt/car/motorvehicletax/en.html

528i

If its the 'MERCEDES C220 CDI DIESEL SPORT COUPE AUTOMATIC 2002' on ebay being offered by 'THE JUBILEE GROUP' you've got
6min 11secs remaining @ £11,100.. buy buy buy lol

Seriously, I'd be well sceptical of such cars being offered so cheap. wouldn't go by ebays 'positive feedback' nonsense either, that sounds well dodgy, a Nigerian scam with a Birmingham twist perhaps..

nxbyveromdwjpg

They are ex-rental cars, and being that the were business cars the VAT was re-claimed when they were bought first.

If he were to sell them to a non-commercial resident of the UK mainland, he or they or somebody would be liable to then pay back the VAT again. Hence he's trying to get around it by shipping them overseas.

I wouldnt really **** about with it... did anyone see the article in the Sunday Business Post this morning? 75 cars seized in the republic so far this year for exploiting a similiar vat loophole..

zod

odie wrote:

Found this info here on the VAT issue

http://europa.eu.int/youreurope/nav/en/citizens/factsheets/pt/car/motorvehicletax/en.html

To quote that website :

If you purchase a second-hand car (i.e. a car which is more than six months old and has travelled more than 6 000 km), VAT is payable in the country of purchase.

and then ..

since 1 January 1993 the Member State of destination no longer has the right to levy VAT on personal effects introduced from another Member State by an individual transferring his normal residence. This applies also to vehicles.

Cyrus

zod wrote:

To quote that website :

If you purchase a second-hand car (i.e. a car which is more than six months old and has travelled more than 6 000 km), VAT is payable in the country of purchase.

and then ..

since 1 January 1993 the Member State of destination no longer has the right to levy VAT on personal effects introduced from another Member State by an individual transferring his normal residence. This applies also to vehicles.

no mention of anyone transferring residence here tho

Victor

zod wrote:

"To save you money we are offering this VAT Qualifying car to EU Residents to export from the UK or Business Users and UK Residents. Our main customer base is the Irish Republic plus all other EU states and UK VAT registered businesses plus UK private buyers

Doesn't the wording here scream of West African legalese?

Scam

Nuttzz

have you a link to the ad?

Nuttzz

http://www.unison.ie/irish_independent/stories.php3?ca=9&si=1423825&issue_id=12674

The owners zoned in on a VAT law where there is a tax exemption on an imported car if it has more than 6,000 miles on the clock

if this is a high value car, expect some interest from revenue!

thomas23i

Hi i have bought from ebay.com i bought a RV it cost €40000 and €5000 to ship it back to uk as no shipping go's to ireland, when it landed in the uk the customs took it from us we had to pay another 10000k uk pound, after getting it from the uk to ireland just getting off the cork swansea ferry, once again the irish customs took it off me, yes out with the long hand? more money.. being honest id never do it again, it cost me just as much,

wingnut

You should have been able to cliam the UK vat back, it was only transiting through the country

blastman

What wingnut said, you're only liable for VAT once within the EU.

galwaytt

zod wrote:

Thanks .. are you saying that irrespective of whether the car is for export or not the Seller should always charge VAT - and the onus is on the seller.

No. If the buyer has a VAT no, the garage can sell it without VAT to you. You would then declare it in your VAT return.

If on the other hand, the buyer does not have a VAT no, they are not supposed to sell it without the VAT. It is the responsibility of the trader to manage the VAT issue to consumers.......

Is there any way the UK revenue could chase me for the VAT later?

No. If there is an issue, after the sale, the issue is between the seller and UK revenue. It is they who made the mistake, and, ultimately would have to pay for it.

Mickk

zod wrote:

To quote that website :

If you purchase a second-hand car (i.e. a car which is more than six months old and has travelled more than 6 000 km), VAT is payable in the country of purchase.

Thats strange, there is no vat on second hand cars (over 6 months or travelled more than 6k) Are you sure they dont mean after importing it from outside the eu?