VAT on used cars purchased from EU

VAT on used cars purchased from EU

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Discussion

andrew-fz8h0

Original Poster:

1 posts

38 months

Saturday 27th February 2021
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Hello All! This is my first post, I hope I haven’t duplicated a question, but couldn’t see anything... I was wondering if anyone knows if it’s possible to get a confirmation if VAT would be due on a used car purchased in the EU (Netherlands) and then brought back and registered in the UK. To throw some spanner’s in the works, the car was previously in the UK, registered in 2000, owned by me between 2006-2009, sold to a Dutch guy who took it back to Netherlands and registered it there (2009). I now want to purchase the car back, now from a dealer, drive it back to the UK and register it. Does it make a difference that the car was sold new in the UK and thus VAT was already paid, it seem ludicrous that you’d have to pay again!!! But the HMRC website just says they will tell you after you tell them you have imported a car, so that’s as much use as a chocolate teapot, I want to know upfront if I am going to get stung for £3,000-£4,000 of VAT!!! Anyone with any advice or anyone know a tax accountant or similar who can confirm what if any VAT would fall due would be much appreciated!

Steve Dean

55 posts

74 months

Saturday 27th February 2021
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Hi there. From whats been published in the motoring press, 20% VAT will be payable, unless the vehicle is over 30 years old and then it's 5%. However, given that the vehicle you describe originated in the UK (proof will be required) then the VAT will not be payable or at least you should be able to get a refund. A company called E M Rogers Transport is a bit of a specialist in moving cars and has detailed knowledge of the paperwork and they are now a customs agent.
Whilst it is possible to do it yourself, using a specialist is probably a good idea. If there is something wrong with the paperwork the vehicle can get impounded, which is a real pain in the butt.