Import Duty & Tax - unusual situation with Lambourghini
Discussion
Hi, I have an unusual situation. I have found a 1997 Lamborghini Diablo for sale in the UK - but the following situation.....
The car has never been registered, serviced or used, other than running up to temperature on a regular basis.
The car was bought new from the factory in Italy, by the original owner, he was a Swiss gentleman but had the car delivered to one of his homes in Denmark - where the car sat in storage until 2018 - it was never taken out, or used on the road, never ever registered in Denmark.
Then in 2018 the car was bought by a UK dealer, it was brought to the UK, but again never registered with DVLA.
Later that year it was sold to its 2nd owner an American collector, who also had a home in the UK. Once again he never registered the car and it still sits in the same storage, in the UK - totally unused.
The car has less than 200 klm on the clock, never been registered anywhere, but is physical in the UK.
If i buy the car, and want to register it in the UK and use it after recommissioning, what are my liabilities for VAT, duty and any other fees or taxes?
I have spent hours goggling the subject, but can't find a definitive answer which relates directly to this particular situation!
any help and advice would be greatly appreciated, thanks JB
The car has never been registered, serviced or used, other than running up to temperature on a regular basis.
The car was bought new from the factory in Italy, by the original owner, he was a Swiss gentleman but had the car delivered to one of his homes in Denmark - where the car sat in storage until 2018 - it was never taken out, or used on the road, never ever registered in Denmark.
Then in 2018 the car was bought by a UK dealer, it was brought to the UK, but again never registered with DVLA.
Later that year it was sold to its 2nd owner an American collector, who also had a home in the UK. Once again he never registered the car and it still sits in the same storage, in the UK - totally unused.
The car has less than 200 klm on the clock, never been registered anywhere, but is physical in the UK.
If i buy the car, and want to register it in the UK and use it after recommissioning, what are my liabilities for VAT, duty and any other fees or taxes?
I have spent hours goggling the subject, but can't find a definitive answer which relates directly to this particular situation!
any help and advice would be greatly appreciated, thanks JB
jodieB said:
Hi, I have an unusual situation. I have found a 1997 Lamborghini Diablo for sale in the UK - but the following situation.....
The car has never been registered, serviced or used, other than running up to temperature on a regular basis.
The car was bought new from the factory in Italy, by the original owner, he was a Swiss gentleman but had the car delivered to one of his homes in Denmark - where the car sat in storage until 2018 - it was never taken out, or used on the road, never ever registered in Denmark.
Then in 2018 the car was bought by a UK dealer, it was brought to the UK, but again never registered with DVLA.
Later that year it was sold to its 2nd owner an American collector, who also had a home in the UK. Once again he never registered the car and it still sits in the same storage, in the UK - totally unused.
The car has less than 200 klm on the clock, never been registered anywhere, but is physical in the UK.
If i buy the car, and want to register it in the UK and use it after recommissioning, what are my liabilities for VAT, duty and any other fees or taxes?
I have spent hours goggling the subject, but can't find a definitive answer which relates directly to this particular situation!
any help and advice would be greatly appreciated, thanks JB
Firstly, I am insanely envious of the position you're in The car has never been registered, serviced or used, other than running up to temperature on a regular basis.
The car was bought new from the factory in Italy, by the original owner, he was a Swiss gentleman but had the car delivered to one of his homes in Denmark - where the car sat in storage until 2018 - it was never taken out, or used on the road, never ever registered in Denmark.
Then in 2018 the car was bought by a UK dealer, it was brought to the UK, but again never registered with DVLA.
Later that year it was sold to its 2nd owner an American collector, who also had a home in the UK. Once again he never registered the car and it still sits in the same storage, in the UK - totally unused.
The car has less than 200 klm on the clock, never been registered anywhere, but is physical in the UK.
If i buy the car, and want to register it in the UK and use it after recommissioning, what are my liabilities for VAT, duty and any other fees or taxes?
I have spent hours goggling the subject, but can't find a definitive answer which relates directly to this particular situation!
any help and advice would be greatly appreciated, thanks JB
Secondly, unfortunately I have no knowledge to impart
Thirdly, and possibly the only helpful thing I would add, is that the DVLA would be the first port of call, I'd try and ring, though I understand they're currently closed?
Fourthly, in all honesty, I'd be giving it a thorough service on receipt, cars do need to be driven (even rare ones) to keep everything in check, seals may have dried up, same as pipes etc. So, I'd actually consider getting a different Diablo, that has been used, even sparingly.
Finally, welcome to PH, please keep us updated on such an amazing car (whether this one, or another one).
Yeah sorry i don't know the answer either but I'm assuming the seller has the origianl bill of sale which would show a purchase inside the EU? in which case you should have nothing to pay at all....except for the car ofc
edit: Hmm Swiss?? do they share EEC status? wow is that even a thing anymore, I should just stop typing what could be nonsen
edit: Hmm Swiss?? do they share EEC status? wow is that even a thing anymore, I should just stop typing what could be nonsen
Edited by TheDrownedApe on Thursday 23 April 19:17
jodieB said:
Then in 2018 the car was bought by a UK dealer, it was brought to the UK, but again never registered with DVLA.
I would start by asking the UK dealer whether or not they fulfilled their legal obligation to notify HMRC within 14 days of importing a vehicle (NOVA) https://www.gov.uk/importing-vehicles-into-the-uk/...If they did, then they should have a response from HMRC detailing any tax payable or not to register the car, which should clarify next steps.
If they didn't, then there's a need to make a late NOVA declaration to HMRC, ensuring that if anyone gets fined for not making the declaration within 14 days it's the dealer, not you.
but does that only apply if the dealer is intending on keeping the car in the UK, or registering it in the UK?
if the dealer is just looking to sell it back outside of the UK then no declaration to HMRC would be needed, or do i have this wrong?
Or in my case he sold it to the current owner /collector, say within the 14 days and he just stored it with no intention of ever registering it in the UK.
I could ask all the relevant departments at DVLA, but unfortunately they are closed
if the dealer is just looking to sell it back outside of the UK then no declaration to HMRC would be needed, or do i have this wrong?
Or in my case he sold it to the current owner /collector, say within the 14 days and he just stored it with no intention of ever registering it in the UK.
I could ask all the relevant departments at DVLA, but unfortunately they are closed
Would be interesting to know if VAT (or Italian equivalent) was paid when bought from Lamborghini - was it usual back then to buy direct from the factory?
I would think if you could show VAT was paid in an EU country, there shouldn't be any taxes or duties to pay now. If nothing was paid anywhere in the EU, and the car is "new", I would expect to have a large VAT bill, but that should be factored into the purchase price (as with any new car).
I would think if you could show VAT was paid in an EU country, there shouldn't be any taxes or duties to pay now. If nothing was paid anywhere in the EU, and the car is "new", I would expect to have a large VAT bill, but that should be factored into the purchase price (as with any new car).
jodieB said:
but does that only apply if the dealer is intending on keeping the car in the UK, or registering it in the UK?
if the dealer is just looking to sell it back outside of the UK then no declaration to HMRC would be needed, or do i have this wrong?
Or in my case he sold it to the current owner /collector, say within the 14 days and he just stored it with no intention of ever registering it in the UK.
This link about NOVA seems to be detailed, relevant and fairly authoritative: https://library.croneri.co.uk/cch_uk/cxe/info-shee...if the dealer is just looking to sell it back outside of the UK then no declaration to HMRC would be needed, or do i have this wrong?
Or in my case he sold it to the current owner /collector, say within the 14 days and he just stored it with no intention of ever registering it in the UK.
It seems pretty clear from the above that it makes no difference that the car wasn't road-registered here, any motorised land transport over 48cc engine size has to be declared within 14 days of permanent import.
As far as I can see, if you bring a vehicle in intending it to be in the UK temporarily (less than six months) and then change your mind and decide it will stay here, at the point you change your mind you can make an on-time NOVA declaration. However this would appear to only extend the window to up to six months from the date of import.
It also appears that it's the importer's responsibility to make the declaration to HMRC, even if they sell the vehicle on immediately. (unless they place it into a Customs bonded warehouse, in which case it's whoever extracts it from said warehouse).
Other possibly helpful links:
http://www.thelambro.com/information/whatyouneedto... see "You purchased a vehicle, know its an import but you have no idea when it came to the UK, who imported it or who sold it in Italy"
http://www.nsra.org.uk/newforum/showthread.php?612...
See "When acquiring a vehicle in the UK which was imported by a third party prior to 15 April and is not yet registered"
I think the bottom line is that the UK dealer should have notified the import to HMRC within 14 days, and if they've not, then the only way that car will ever be registered in the UK is for them to do so now. As far as I can see, if HMRC aren't happy then DVLA won't register it at all, even on a Q plate.
I think that a reputable dealer would be prepared to make the legally required NOVA declaration, either at the time or now, and provide the NOVA number and letter with the car. And I don't think I'd want to try and buy a Lamborghini from a disreputable dealer.
Edit: remove bit about making NOVA declaration yourself, as far as I can see only the original importer can do that.
Edited by samoht on Friday 24th April 17:12
Just seen this on VAT:
https://www.gov.uk/importing-vehicles-into-the-uk/...
If you’re importing a second-hand vehicle, you will not have to pay VAT if all the following apply:
- VAT has already been paid in any EU country or the UK, and
- the vehicle has been in use for more than 6 months, and
- the vehicle has done more that 6,000km (about 3,728 miles)
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