USA V European Import

USA V European Import

Author
Discussion

On`it

Original Poster:

83 posts

249 months

Tuesday 22nd April 2014
quotequote all
I am after advice and comments ref importing a LHD european manufactured sports car e.g ferrari, Lambo. under say 10 years and over 2 years old. If it makes any difference if the car comes in from Europe or the USA as far as costs and resale value as follows.

1st - Does this make any differance to the resale value?

2nd - There is information ref non EU imports implying EU manufactured cars are exempt from uk duty tax @ 10% any idea if this includes cars from the USA?

These are the two main questions and I am ok for now on the vat and handling side of things any top tips would be helpfull especially if there might be any real differance to the cars spec which will have any real material effect etc.

Thanks

TISPKJ

3,648 posts

206 months

Tuesday 22nd April 2014
quotequote all
You will have UK vat and import duty to pay if car has never been reg in the EU

On`it

Original Poster:

83 posts

249 months

Tuesday 22nd April 2014
quotequote all
Just had confirmation the 10% duty is not liable only £50 and if the car is American spec. for example brake light flashing there will be extra costs to change.
So the main question is resale value any differance?

andysv

1,329 posts

226 months

Tuesday 22nd April 2014
quotequote all
It's a few years since I bought two cars in from the States but from memory it was 10%duty, 20%vat plus shipping at around £1300, then you need the IVA test at a VOSA depot, then you discover the radio won't tune in correctly and most navs won't work, my Black Series could not be sorted without completely new audio and navigation system, the mpg computer is also wrong due to American gallons being around 4lt and some of the lights will need changing as the yanks often have indicators in the wrong colour, it was quite a challenge but was worth it. The main fear buying from America was getting the right car from the right people, I had a good friend at the other end but it was still tense at times. Europe would be very much easier but the deal could be better from the States.
Forgot to mention yes it was fairly tricky selling a US spec vehicle from my experience as most buyers knew the downsides however I would do it again if the price was right and looking at the improving exchange rates that time is definitely coming again.



Edited by andysv on Tuesday 22 April 12:21

TISPKJ

3,648 posts

206 months

Tuesday 22nd April 2014
quotequote all
When you say "just had confirmation" please before you go any further ensure this is from HMRC as I believe the above to be correct also.

There is I understand some concessions for older cars.

Depends on car but would have to be a great deal to better current euro prices on most models.

NEFOC

415 posts

190 months

Tuesday 22nd April 2014
quotequote all
I imported a Ferrari from the US and as it was manufactured in Europe and over 10 years old I didn't have to pay the 10% or VAT

On`it

Original Poster:

83 posts

249 months

Tuesday 22nd April 2014
quotequote all
HMRC did not at first agree then I went back after specialist advice and then some one at HMRC had heard of this though they dont publish any details how the Return Goods relief can be used in this way. There is a specialist department NIRU who I am awaiting written confirmation as telephone conversations dont count for much.
But they have so far confirmed only £50 charge is correct and not 10% as published in there return Goods relief. Typical HMRC and they wonder why we go to tax specialists etc.

F355GTS

3,721 posts

254 months

Tuesday 22nd April 2014
quotequote all
Just had a look at the NIRU stuff, it seems to be for good where VAT and any other duties were paid in the local EU country prior to export, also the reimport must be within 3 Years of original export although longer periods may be considered .

Given that exports of new cars from the EU to USA do not attract VAT then the rules appear not to apply.

It would also seem to suggest that the whole scheme is designed for people who export some personal possessions then reimport them themselves


I think the other posters are right, you'll be looking at normal duties and VAT on a non EU import (except for Switzerland)

On`it

Original Poster:

83 posts

249 months

Tuesday 22nd April 2014
quotequote all
Thanks I dont think there is any reason to debate the duty any more and every one needs to do there own reaserch but what is published is not in question there are some details not published or to be found and best to contact NIRU direct or a good respected shipping company who will also confirm the same as I have done. Thanks for your help.

Edited by On`it on Tuesday 22 April 18:23


Edited by On`it on Tuesday 22 April 19:11

Allandwf

1,754 posts

194 months

Tuesday 22nd April 2014
quotequote all
I looked into this exact scenario. Was told I would be liable for duties and VAT for a US import, making it not cost effective, unless it was a very old model.

andysv

1,329 posts

226 months

Tuesday 22nd April 2014
quotequote all
There was some kind of get out with a US import if the car was of historic interest? so possibly wouldn't apply to a modernish super car, one of my purchases was a high performance pick up truck from the 90s called a GMC Syclone and that should have had a higher level of duty, something like 20% due to it being a commercial vehicle which it really isn't, but strangely it came through as a car (which it clearly isn't) so the duty ended up at 10%.
I was also very close to bringing a 430 Scud in from Europe as prices of these were much cheaper than in the UK (a year or two ago) also the lhd drive isn't as tricky as you would think. I am surprised more people don't bring the cars over as it is often fantastic value as long as you don't mind a bit of a challenge.

lamboman100

1,445 posts

120 months

Tuesday 22nd April 2014
quotequote all
A friend recently imported a roadworthy 1970s Ferrari to the UK from the US for ~£17k all-in. Used a specialist US-import company. Good way to get a classic Ferrari on the cheap. Only major downside, apart from the obvious parts one, is getting people to buy a lefthooker when he comes to sell it on.

TISPKJ

3,648 posts

206 months

Tuesday 22nd April 2014
quotequote all
[quote=On`it]HMRC did not at first agree then I went back after specialist advice and then some one at HMRC had heard of this though they dont publish any details how the Return Goods relief can be used in this way. There is a specialist department NIRU who I am awaiting written confirmation as telephone conversations dont count for much.
But they have so far confirmed only £50 charge is correct and not 10% as published in there return Goods relief. Typical HMRC and they wonder why we go to tax specialists etc.
[/quote]

Around 15 years ago we bought in bikes and cars from Europe for our own use due to the very favourable exchange rate and the local DVLA and HMRC didn't have a clue, in fact we used to have to tell them the procedure so the above does not surprise me at all.

thegreenhell

15,110 posts

218 months

Tuesday 22nd April 2014
quotequote all
There is no Returned Goods Relief on VAT for cars, unless you personally exported it from the EU less than three years ago and had previously paid VAT on it within the EU.

You can get RGR on import duty if you can prove that the item was manufactured within the EU. This requires either the original export documents for your specific car (unlikely if you purchased the car overseas) or an official letter from the manufacturer confirming that your specific car was manufactured within the EU. Just being a European marque is not enough, since many manufacturers make cars all over the world these days. Once you qualify for RGR on duty then you just pay the £50 customs fee, and then VAT on top.

For cars built before 1950 you only pay VAT at 5%, and no import duty. Cars over 30 years old pay VAT at 5% if they are deemed 'historically interesting'. The historical interest of cars used to be covered under tariff heading 97.05, but a more recent court ruling opened up the definition to include most cars that were largely in their original specification and condition, and were no longer used for the primary purpose of everyday transport (and hence were preserved for reasons other than mere transportation).

Otherwise it's import duty at 10% of value (as proven by purchase invoice or bill of sale) plus nominal shipping cost, and 20% VAT on top of that total, so to calculate total cost it's (purchase price + shipping costs)*1.32

You also need to check that things like tyres, lights and glass are all E-marked for use in Europe.