VAT on used European car import
Discussion
Hi, a bit confused by all the online 'guidance' regarding VAT.
Currently finalising a deal for a used German car. Let's say for argument sake the agreed price is Eu10,000. I am a private buyer and not a company/trader
The car is owned by a private individual but being fronted by the independent garage where it gets looked after. I suppose a kind of sale or return (SOR) or favour for the owner who is a good customer. As they locally are not concerned about UK VAT status, I am getting somewhere between a blasé attitude to one that says 'don't worry it's all fine'. The garage has so far mentioned that the invoice is likely to be facilitated by the garage.
I wanted to educate myself before seeing the receipt paperwork.
Assuming the receipt/contract is drawn up by the garage:
- if is says Eu8,333 plus Vat which equals say Eu10,000 then that's ok, I don't pay VAT here in UK
- if the garage is not VAT registered and the invoice says Eu10,000 then I don't pay VAT here in UK
- is there any other garage labelled outcome that would mean I become liable to pay VAT here in the UK?
- if it says Eu10,000 and no mention of VAT am I still liable? (E.g. If I have the original invoice from the private owner highlighting that he paid vat at purchase, am I still liable for vat?
Alternatively, if the invoice is settled directly between me and the private owner:
- then I assume that I need a copy of the original purchase invoice to prove that he paid VAT at purchase, and I can pay him Eu10,000 with no UK VAT liability
Any experience or clarification welcome.
Thanks.
PS: this is not about evading tax but making sure I do not open myself up to additional liability.
Currently finalising a deal for a used German car. Let's say for argument sake the agreed price is Eu10,000. I am a private buyer and not a company/trader
The car is owned by a private individual but being fronted by the independent garage where it gets looked after. I suppose a kind of sale or return (SOR) or favour for the owner who is a good customer. As they locally are not concerned about UK VAT status, I am getting somewhere between a blasé attitude to one that says 'don't worry it's all fine'. The garage has so far mentioned that the invoice is likely to be facilitated by the garage.
I wanted to educate myself before seeing the receipt paperwork.
Assuming the receipt/contract is drawn up by the garage:
- if is says Eu8,333 plus Vat which equals say Eu10,000 then that's ok, I don't pay VAT here in UK
- if the garage is not VAT registered and the invoice says Eu10,000 then I don't pay VAT here in UK
- is there any other garage labelled outcome that would mean I become liable to pay VAT here in the UK?
- if it says Eu10,000 and no mention of VAT am I still liable? (E.g. If I have the original invoice from the private owner highlighting that he paid vat at purchase, am I still liable for vat?
Alternatively, if the invoice is settled directly between me and the private owner:
- then I assume that I need a copy of the original purchase invoice to prove that he paid VAT at purchase, and I can pay him Eu10,000 with no UK VAT liability
Any experience or clarification welcome.
Thanks.
PS: this is not about evading tax but making sure I do not open myself up to additional liability.
Edited by LaSource on Tuesday 27th May 20:40
http://www.hmrc.gov.uk/vat/sectors/consumers/perso...
UK VAT is due on new cars imported permanently into the UK from another EU country.
A vehicle is considered 'new' if it was first used less than 6 months ago or has been driven less than 6,000 km.
If you import a new or used car into the UK you must notify HMRC and pay any VAT due before you can register and tax the car.
UK VAT is due on new cars imported permanently into the UK from another EU country.
A vehicle is considered 'new' if it was first used less than 6 months ago or has been driven less than 6,000 km.
If you import a new or used car into the UK you must notify HMRC and pay any VAT due before you can register and tax the car.
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