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VAT on imports


Barcobird

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I have searched this subject but it always heads off to another dimension such as insurance or is it really worth it?

I am considering purchasing a used motor home from Germany or the continente because I want a LHD and apparently they are cheaper but I will definately have more choice. I have noticed they are advertised as a gross price or nett without VAT.

Can someone explain why this is? If it's imported into the UK can I buy it vat free in Germany and would I have to pay vat in the UK.

Thanks in anticipation *-)

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Not sure if it still applies, but a friend bought a boat in holland, and had to pay Dutch vat, and then when it came to the Uk, he had to pay VAT here, but then got the Dutch tax back. BUT that was a new boat, and was year 2000 Do you have to pay it on second hand models?

Best to contact a local VAT office, and ask

PJay

PS Judgemental would probably known the answer, as I believe his last van was not brand new.

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Robbo - 2015-08-02 7:19 PM

 

I think if it's over 6 months old and has more than 6000 miles (10k km), you don't have to pay any UK vat.

Which is correct, but you cannot then claim back the German VAT. It is only if the vehicle is less then 6 months old or has less than 6,000 miles on its odometer, that you claim back the German (or wherever you bought) VAT back, and must then pay UK VAT on the total purchase cost.

 

Some dealers will sell you the van ex VAT, but will ask you to send them a receipt from HMRC to prove that you paid the UK rate. One we bought from wanted us to leave a separate cheque for the French VAT, that they would destroy on receipt of the HMRC receipt. The point being that if UK VAT is not paid by the buyer, the dealer has to pay at his national rate. The difference in VAT rates is only in the order of 1.5% in favour of UK, so the VAT is not the main saving (or, in reality, that significant).

 

The main difference is in UK vs European list prices at present exchange rates. The European manufacturers set prices for UK sales in advance, based on where they think Sterling will settle over the next 6 - 12 months. Naturally, they err on the safe side from their point of view, so the UK price is set relatively high. This tends to feed through to UK motorhome prices generally, so even with dealer discounts most imported vans can be bought cheaper abroad than in UK, and that saving also feeds through to the second-hand market.

 

Just be aware that the German temporary export plates (vehicles are sold in Germany without registration plates, the plates go with the driver, not the vehicle) that will be fitted to the vehicle will give you the approximate equivalent of Road Traffic Acts only insurance. If you are unhappy with the idea driving the van on third party only insurance until it is registered in UK, you will need to explore avenues to obtain full comprehensive cover, or use an import agent such as Bundesvan.

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So basically it's doesn't matter wether you pay the vat in Germany or not because it has to be paid somewhere and as the difference in rates between countries is negligible it may as well be paid at source.

Presumably you have to show UK customs a vat paid invoice to import the vehicle.

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Barcobird - 2015-08-02 11:18 PM

 

So basically it's doesn't matter wether you pay the vat in Germany or not because it has to be paid somewhere and as the difference in rates between countries is negligible it may as well be paid at source.

Presumably you have to show UK customs a vat paid invoice to import the vehicle.

Not as I recall. If the vehicle classifies as a New Means of Transport (i.e under 6 months/6,000 miles old) the VAT must be paid in UK when it is imported. It is for that reason that the foreign VAT can be claimed back. Evidence that UK VAT has been paid is built into the registration procedure. If buying an older vehicle the VAT is not reclaimable, and will have been included in the purchase price. There is an excellent government importation pack (not sure who issues it now, but it was DVLA), which gives more or less step by step instructions and includes all necessary forms for UK registration. Try the DVLA website on importing vehicles from within the EU.

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Robbo - 2015-08-02 7:19 PM

 

I think if it's over 6 months old and has more than 6000 miles (10k km), you don't have to pay any UK vat.

 

For customs purposes, to be classified as a ‘new means of transport’, a vehicle imported into the UK from another EU country must be less than 6 months old OR have travelled less than 6000km (3750 miles).

 

Consequently, if a vehicle is more than 6 months old OR has covered more than 6000km, it will no longer qualify as a ’new means of transport’.

 

As JudgeMental discovered (I don’t think he has been ‘banned’ from these forums, he just participates more often nowadays on the MHFun website) importing a ‘used’ motorhome may cause the DVLA difficulty when it comes to the correct date of UK-registration and can have implications regarding when the UK MOT-test is due.

 

The DVLA still offers an import pack that can be ordered from here

 

https://forms.dft.gov.uk/order-dvla-forms/

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Derek Uzzell - 2015-08-03 9:34 AM

 

As JudgeMental discovered (I don’t think he has been ‘banned’ from these forums, he just participates more often nowadays on the MHFun website)

 

No, I definitely saw a post from Duncan recently saying that Eddie had been banned for some infraction.

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Derek Uzzell - 2015-08-04 9:02 AM

 

Works OK for me

 

http://www.bundesvan.co.uk/

 

I note that Bundesvan (that changed hands not long ago) will be present at the August 14-16 Malvern Show.

 

I still can't connect, have tried on a phone, tablet, laptop even the wife's kindle. I have typed it in the search box, used your link.

It's very frustrating :$

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Barcobird - 2015-08-04 7:56 PM

 

Derek Uzzell - 2015-08-04 9:02 AM

 

Works OK for me

 

http://www.bundesvan.co.uk/

 

I note that Bundesvan (that changed hands not long ago) will be present at the August 14-16 Malvern Show.

 

I still can't connect, have tried on a phone, tablet, laptop even the wife's kindle. I have typed it in the search box, used your link.

It's very frustrating :$

 

It works for me also.

 

It may be something to do with your location and the .co.uk web address, assuming you are in Portugal still? Maybe Bundesvan in Germany do not allow the UK franchise to advertise outside the UK?

 

Try this Link

 

Or if that doesn't work copy the address into uk.proxfree.com and follow the link that gives.

 

Keith.

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Keithl - 2015-08-04 9:02 PM

 

Barcobird - 2015-08-04 7:56 PM

 

Derek Uzzell - 2015-08-04 9:02 AM

 

Works OK for me

 

http://www.bundesvan.co.uk/

 

I note that Bundesvan (that changed hands not long ago) will be present at the August 14-16 Malvern Show.

 

I still can't connect, have tried on a phone, tablet, laptop even the wife's kindle. I have typed it in the search box, used your link.

It's very frustrating :$

 

It works for me also.

 

It may be something to do with your location and the .co.uk web address, assuming you are in Portugal still? Maybe Bundesvan in Germany do not allow the UK franchise to advertise outside the UK?

 

Try this Link

 

Or if that doesn't work copy the address into uk.proxfree.com and follow the link that gives.

 

Keith.

 

Keith you're a star ?? I was beginning to wonder if it was something to do with my location. I didn't realise this was a franchised company.

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Brian Kirby - 2015-08-05 12:17 AM

 

Barcobird - 2015-08-04 10:16 PM................... I didn't realise this was a franchised company.

But it isn't, is it? I get no alternative hits under the Bundesvan name. It seems to be a UK based company with a single branch.

 

OK That was my error, I made an assumption before adding the proxy link and intended to go back and change it but forgot :$ Sorry if I have caused confusion.

 

But at least Barcobird now has access to the UK site :-)

 

Keith.

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I will be importing a used motorhome from Germany in the near future, having already been through the process in 2005. Things have changed since then so i won't comment on that experience.

However, i recently imported a used car from a German dealer.

I paid a "gross" price and the sales receipt shows no seperate local VAT.

 

Once the vehicle is imported it has to be notified to the HMRC via their Online Notification of Vehicle Arrivals (NOVA).

You get to this via the HMRC Gateway.

This will also tell you if UK VAT is due.

In my case no UK VAT was due.

 

For information purposes the relevant law relating to notification and payment of VAT due in respect of the acquisition (purchase) of a new means of transport or the arrival in the UK of a means of transport is contained in para 2 (4) to (5D) of Schedule 11 to the Value Added Tax Act 1994 and the related regulations.

Hope this helps.

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