Paying VAT on a used EU import!!
Discussion
Well, like many I always thought if you imported a nice low mileage bike from the EU that there would be no vat payable as it would have been paid by the original owner at point of purchase
Apparently, this is not the case. From my research, when you make a NOVA declaration, you have to enter mileage, this will determine if the vehicle is considered ‘NMT’ (new means of transport). A bike, or any land vehicle over 48cc, is considered new if it is less than 6 months old (regardless of mileage), or has less than 6000kms (regardless of age) if either applies, you’ll be charged vat on the purchase price.
https://www.gov.uk/importing-vehicles-into-the-uk/...
You can understand a time limit to prevent people from buying from cheaper vat member states , but the mileage part takes the piss frankly! So basically they get VAT twice!!
Just a heads up anyway in case anyone was considering importing a low mileage EU bike, if it’s less than 6000kms, be prepared to get bent up like a pretzel!
Apparently, this is not the case. From my research, when you make a NOVA declaration, you have to enter mileage, this will determine if the vehicle is considered ‘NMT’ (new means of transport). A bike, or any land vehicle over 48cc, is considered new if it is less than 6 months old (regardless of mileage), or has less than 6000kms (regardless of age) if either applies, you’ll be charged vat on the purchase price.
https://www.gov.uk/importing-vehicles-into-the-uk/...
You can understand a time limit to prevent people from buying from cheaper vat member states , but the mileage part takes the piss frankly! So basically they get VAT twice!!
Just a heads up anyway in case anyone was considering importing a low mileage EU bike, if it’s less than 6000kms, be prepared to get bent up like a pretzel!
Edited by NITO on Wednesday 4th September 23:01
The EU.
Why should VAT be payable again on a used item bought from a private seller? It was paid by the original owner to the main dealer. However this NMT for under 6000kms is law, even if it's BS. How crazy that a ten year old bike that has less than 6000kms, should be considered new for vat purposes.
Apparently the existing owner can apply for a vat refund, take it off the price and the new owner pay Vat in the destination company. But would you try and get a vat refund before selling your low mileage used bike to say a French buyer. It's unworkable.
Why should VAT be payable again on a used item bought from a private seller? It was paid by the original owner to the main dealer. However this NMT for under 6000kms is law, even if it's BS. How crazy that a ten year old bike that has less than 6000kms, should be considered new for vat purposes.
Apparently the existing owner can apply for a vat refund, take it off the price and the new owner pay Vat in the destination company. But would you try and get a vat refund before selling your low mileage used bike to say a French buyer. It's unworkable.
The originating country’s taxman claims its VAT at the initial point of sale, not the EU. The UK’s HMRC then decides what is described as a “new” vehicle, and charges the VAT to you at the point of import, not the EU. Each country claims the VAT it believes it is entitled to, you either take it or leave it
Fair enough, a proportion of vat from member states does go to the EU.
The Gov website states;
"The definition of a ‘means of transport’ within this notice and when it’s ‘new’ is common to all EU member states and is only for the purpose of determining when VAT is due."
That implied to me that this is Europe wide as opposed to a UK thing. If we're going to pay VAT again on a used item, after vat has already been paid on it when new, one may as well buy from the US or Japan or any third country if purchasing a low mileage bike it makes no difference apart from additional duty.
I'm just raising it so people are aware, if it's over 6 months old and more than 6000kms it's business as usual and no vat would be applicable which is the common conception, this NMT 'thing' is news on me, I wonder how many others were aware of it?!
The Gov website states;
"The definition of a ‘means of transport’ within this notice and when it’s ‘new’ is common to all EU member states and is only for the purpose of determining when VAT is due."
That implied to me that this is Europe wide as opposed to a UK thing. If we're going to pay VAT again on a used item, after vat has already been paid on it when new, one may as well buy from the US or Japan or any third country if purchasing a low mileage bike it makes no difference apart from additional duty.
I'm just raising it so people are aware, if it's over 6 months old and more than 6000kms it's business as usual and no vat would be applicable which is the common conception, this NMT 'thing' is news on me, I wonder how many others were aware of it?!
If that's what you want to read it as. There are plenty of other threads in politics for that sort of stuff.
It's actually about the concept of buying a used 13 year old low mileage bike from Europe and discovering that vat would be payable on it
I'm pleased you were well aware of this, the thread is to warn others who may be considering the same.
It's actually about the concept of buying a used 13 year old low mileage bike from Europe and discovering that vat would be payable on it
I'm pleased you were well aware of this, the thread is to warn others who may be considering the same.
It has been that way forever. Due diligence is a simple concept that should always be carried out and advice and clarification is easy to source on the web.
https://www.gov.uk/importing-vehicles-into-the-uk
Your post does read a little like complaining about the road tax, fuel economy or insurance on a vehicle after buying it. These are things you should check first.
https://www.gov.uk/importing-vehicles-into-the-uk
Your post does read a little like complaining about the road tax, fuel economy or insurance on a vehicle after buying it. These are things you should check first.
Lindun said:
It has been that way forever. Due diligence is a simple concept that should always be carried out and advice and clarification is easy to source on the web.
https://www.gov.uk/importing-vehicles-into-the-uk
Your post does read a little like complaining about the road tax, fuel economy or insurance on a vehicle after buying it. These are things you should check first.
You are absolutely right. It's why I've started the thread to raise awareness. https://www.gov.uk/importing-vehicles-into-the-uk
Your post does read a little like complaining about the road tax, fuel economy or insurance on a vehicle after buying it. These are things you should check first.
I never knew about this 'NMT' before and assumed it was as I'd always thought it to be, if vat was already paid in the original member state, it wouldn't need paying again. I'm glad I checked before purchasing the bike I've been negotiating on for 6 months because this would have been a killer. I think its utter BS but that is the law so as stated above, you take it or leave it.
Krikkit, yes of course you could fit some moody clocks or under declare the value quite easily to overcome this and I'm sure many do, but is it worth the risk of vat fraud, the point is, it's a stupid piece of legislation and should be reviewed, but without awareness who really even knows about it.
So take this thread as a heads up, on some exotics it could be a very expensive oversight!
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