Importing From USA.... But.
Discussion
Does anyone know how I would stand re duty etc. on the following.
Italian car, originally sold in Europe, European designation Vin No. , imported into USA some time ago. If I was to import back into the UK, would duty be payable, ie the 20% normally applied, or would it not as it was an EU car?
Trying to see if it is viable.
Italian car, originally sold in Europe, European designation Vin No. , imported into USA some time ago. If I was to import back into the UK, would duty be payable, ie the 20% normally applied, or would it not as it was an EU car?
Trying to see if it is viable.
Allandwf said:
would duty be payable, ie the 20% normally applied
Ummm - 20 % VAT & import duty are not the same - you would probably be ok with proof the car had been registered in the EU and was originally made in the EU to avoid duty but the VAT element is more complex since I believe different states have different rules on the reclaiming of vat on resale and/or export of used cars - you have to prove that no vat is payable because it has already been paid and not reclaimed - also registration would be easier if car over ten years old 
For anyone looking to do this, theres 20% vat due on any car under 25 years old, and for a car made in Europe( COC may be required) then there is a flat £50 fee payable through your immport agent for duty. If you dont have a EU manufactured car, then the duty is an additional 10%. Thats why they call the UK treasure Island....
Wilder said:
For anyone looking to do this, theres 20% vat due on any car under 25 years old, and for a car made in Europe( COC may be required) then there is a flat £50 fee payable through your immport agent for duty. If you dont have a EU manufactured car, then the duty is an additional 10%. Thats why they call the UK treasure Island....
Spot on.PAUL500 said:
If a european car leaves the eu then after 2 years you have to pay VAT and customs duty once again regardless, when its brought back, if the car is over 30 years old you might get in in as a historic on reduced duties though.
That's a surprise. so even though VAT was paid In Europe, that doesn't count after 2 years??????!!!!! And the same goes for customs duty? Crikey!!!!!!????_Superleggera_ said:
It's up to 3 years but yes. Plus you have to be the person that exported it and is bringing it back in.
Important for me this. Can you provide me with a link to the legislation on this. I'm looking at a car that came from Italy to the U.S. 20 years ago. Clearly if I have to pay VAT on its current purchase price I'm in for s hefty whack. It'll render the deal a no-go.Thanks
rubystone said:
Important for me this. Can you provide me with a link to the legislation on this. I'm looking at a car that came from Italy to the U.S. 20 years ago. Clearly if I have to pay VAT on its current purchase price I'm in for s hefty whack. It'll render the deal a no-go.
Thanks
Sure. We've only brought in a handful of cars from the US, but would be glad to take a look at the situation for you free of charge. Thanks
https://www.gov.uk/importing-vehicles-into-the-uk/...
.gov.uk said:
Importing previously exported vehicles
You don’t pay VAT or duty on a vehicle imported from outside the EU if it was previously exported out of the EU. This is known as ‘returned goods relief’. To qualify you must meet all of these conditions:
you exported the vehicle outside the EU within the last 3 years
the taxes were paid on the vehicle in the EU and not refunded when it was exported
the vehicle hasn’t been altered outside the EU, other than necessary running repairs
To get the tax relief, drive your vehicle through the ‘green channel’. You must have proof that:
the vehicle was exported
you were the person who exported it
You don’t pay VAT or duty on a vehicle imported from outside the EU if it was previously exported out of the EU. This is known as ‘returned goods relief’. To qualify you must meet all of these conditions:
you exported the vehicle outside the EU within the last 3 years
the taxes were paid on the vehicle in the EU and not refunded when it was exported
the vehicle hasn’t been altered outside the EU, other than necessary running repairs
To get the tax relief, drive your vehicle through the ‘green channel’. You must have proof that:
the vehicle was exported
you were the person who exported it
Cheeky buggers eh? So a lump of tax is paid on the car at source in Europe. Then HMRC want to levy the same tax again?
Thanks for the link.
So ex UK cars exported to Australia, when imported back into the UK are subject to 20% VAT plus import duty of (if lucky 5%) . There are a lot of such cars out there that, with the exchange rate, look temptingly cheap right now...until that 20% is added on...
Thanks for the link.
So ex UK cars exported to Australia, when imported back into the UK are subject to 20% VAT plus import duty of (if lucky 5%) . There are a lot of such cars out there that, with the exchange rate, look temptingly cheap right now...until that 20% is added on...
rubystone said:
Cheeky buggers eh? So a lump of tax is paid on the car at source in Europe. Then HMRC want to levy the same tax again?
Thanks for the link.
So ex UK cars exported to Australia, when imported back into the UK are subject to 20% VAT plus import duty of (if lucky 5%) . There are a lot of such cars out there that, with the exchange rate, look temptingly cheap right now...until that 20% is added on...
Exactly, so import from within the EU. That's what we do.Thanks for the link.
So ex UK cars exported to Australia, when imported back into the UK are subject to 20% VAT plus import duty of (if lucky 5%) . There are a lot of such cars out there that, with the exchange rate, look temptingly cheap right now...until that 20% is added on...
rubystone said:
Important for me this. Can you provide me with a link to the legislation on this. I'm looking at a car that came from Italy to the U.S. 20 years ago. Clearly if I have to pay VAT on its current purchase price I'm in for s hefty whack. It'll render the deal a no-go.
Thanks
He is quite correct and it is on the HMRC website. On such a car ( and I am currently importing a 355 from the USA made in 1999) its 20% vat and £50 flat rate duty.Thanks
If its a car you exported, then re-imported within 3 years, then there is no VAT but you have to be the exporter of the vehicle or you will be charged 20% vat irrespective of whether its been out of the country for 3 weeks or 3 years.
I was also looking to re-import an E type that was previously exported to the USA less than 12 months ago, and HMRC told me that as I was not the original exporter, I would have to pay VAT when it came back.
As the car was over 25 years and a classic, this would be 5% of the declared value ( plus shipping costs) as it also meets the criteria as a vehicle of historical interest.
Edited by Wilder on Sunday 2nd August 18:32
Wilder said:
He is quite correct and it is on the HMRC website. On such a car ( and I am currently importing a 355 from the USA made in 1999) its 20% vat and £50 flat rate duty.
If its a car you exported, then re-imported within 3 years, then there is no VAT but you have to be the exporter of the vehicle or you will be charged 20% vat irrespective of whether its been out of the country for 3 weeks or 3 years.
I was also looking to re-import an E type that was previously exported to the USA less than 12 months ago, and HMRC told me that as I was not the original exporter, I would have to pay VAT when it came back.
As the car was over 25 years and a classic, this would be 5% of the declared value ( plus shipping costs) as it also meets the criteria as a vehicle of historical interest.
My reading of the HMRC regs on that link is that to qualify for reduced import duty of 5% the car had to be of historic interest? But VAT is 20% of purchase price plus shipping and auxiliary costs. There's no lower rate for the VAT element. If its a car you exported, then re-imported within 3 years, then there is no VAT but you have to be the exporter of the vehicle or you will be charged 20% vat irrespective of whether its been out of the country for 3 weeks or 3 years.
I was also looking to re-import an E type that was previously exported to the USA less than 12 months ago, and HMRC told me that as I was not the original exporter, I would have to pay VAT when it came back.
As the car was over 25 years and a classic, this would be 5% of the declared value ( plus shipping costs) as it also meets the criteria as a vehicle of historical interest.
Edited by Wilder on Sunday 2nd August 18:32
Or have I misread it?
rubystone said:
My reading of the HMRC regs on that link is that to qualify for reduced import duty of 5% the car had to be of historic interest? But VAT is 20% of purchase price plus shipping and auxiliary costs. There's no lower rate for the VAT element.
Or have I misread it?
Thats correct, Theres a few things that can help if your considering importing a vehicle from overseas. The 5% duty is typically for cars such as Jags,Ferrari , any exotic or classic car of note. Its really a case by case basis for more mainstream cars but they need to be over 25 years to be considered for the reduced duty. The best way to be sure, is to ring the customs classification line and ask them. One tip, don't give them your real address , phone number or name, as they do keep logs, and if subsequently you import a vehicle and do happen to declare it under a different tariff to the one you enquired under, then it will flag up. The vat is calculated on the purchase price + basic shipping cost to the destination port - but the insurance ( typically 1.5 -2.5%) is not considered as part of the total so VAT on that is not applied. You should insure at replacement cost, not actual purchase price, as you will likely have bought a bargain and to replace it is likely to be more in time , hassle and shipping/ handling if the ship goes down. Once in the UK you have customs presentation, terminal handling charges etc. Normally allow £350 -£400 for this. I have just arranged a shared container from Houston and its $1245 with Rinkens .Or have I misread it?
Expect to pay around $2000 from LA, or as little as $800 from New York for the actual shipping container cost ( inc loading and USA side documentation handling). One last point, is I always remove documents and toolkits from the cars prior to shipping and have the service book photocopied then if they get lost or stolen, you at least have copies of the history. Some of the toolkits can be £3k or more on E bay (ferrari 308 GTB/S) so its best to get them sent separately insured by a firm such as Fedex just in case.
Edited by Wilder on Monday 3rd August 01:01
rubystone said:
In your earlier posting, Wilder,you implied that HMRC was allowing you to pay only 5% VAT on the e type. Was that an error? I'm aware of the 5% duty element (not just confined to high end classics, btw) but not of HMRC reducing the VAT element.
5% VAT is payable under importation of a classic car over 25 years old, with the flat fee of £50 duty payable in addition on entry to the UK.Your appointed agent should automatically use the correct tariff code when presenting to customs, but I always like to double check , as reclaiming overpaid vat takes months.
01702 366077 classification line phone number.
The commodity code used for a classic over 25 yrs old is 9705000090
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