Importing a car from Guernsey.

[sjc]

I'm buying back my old car form the owner I sold it too a year ago who lives in Guernsey.Are there any import taxes etc to pay? I know I've got to MOT it, re-register it and road tax it, wondered if there's anything else?

[belleair302]

VAT will ave to be paid here in the UK, so get ready to cough up!

[Strawman]

I think Vat is only payable 1 time, so if a UK registered car is exported then later re-imported there is no new Vat to pay.

[anonymous-user]

The main point being that the Channel Islands are NOT in the EU so anything which comes from there is subject to the full rigour of tax and duty on imported goods.

(It's popular for "tax free" CDs and DVDs to be supplied from the Channel Islands by HMV, Tesco and others because they slip under the net being low value items.)

[sjc]

Strawman said:

I think Vat is only payable 1 time, so if a UK registered car is exported then later re-imported there is no new Vat to pay.

Thats how I would have thought it works, but I've been trying to get a definitive answer from the DVLA and surprise surprise,on friday I couldn't get through!

[Stu R]

sjc said:

Strawman said:

I think Vat is only payable 1 time, so if a UK registered car is exported then later re-imported there is no new Vat to pay.

Thats how I would have thought it works, but I've been trying to get a definitive answer from the DVLA and surprise surprise,on friday I couldn't get through!

Try customs and excise

[SS2.]

5 USA said:

The main point being that the Channel Islands are NOT in the EU so anything which comes from there is subject to the full rigour of tax and duty on imported goods.

(It's popular for "tax free" CDs and DVDs to be supplied from the Channel Islands by HMV, Tesco and others because they slip under the net being low value items.)

I thought the Channel Islands were a 'Special Terrority' as far as HMRC was concerned. That is, they are part of the EC for Customs' purposes but are not part of the VAT territory. If that's the case, the OP would be liable to pay import VAT on the value of the vehicle but not excise duty.

Ideally, an invoice from the seller would indicate the value of the vehicle for VAT purposes. If this was deemed to be unfeasibly low (ie £1,000 invoice for a £10,000 car), or if an invoice wasn't presented, then HMRC would probably undertake their own valuation. This is likely to be less favourable to the buyer than getting the seller to provide an invoice .

Like Stu says, try HMRC if in doubt..

Edited by SS2. on Monday 7th May 07:36

[anonymous-user]

SS2 - you're absolutely right. The EU has preferential tax agreements with many countries and there are “Special Territories” which are within the European Union customs area (i.e. for customs duty) but outside the EU fiscal territory (i.e. for VAT). These include the Channel Islands. So if you buy, say, a German car from Jersey you will need to pay VAT when you import it into mainland Britain. If you buy an American car in USA and import it via the Channel Islands you will pay Duty when the car comes into the EU customs area and VAT when it comes into Britain. Either way it ends up as a level playing field.

The loophole for CDs and DVDs arises from the EU's Low Value Consignment Relief which allows any item bought for less than £18 to be individually imported to the UK from the Channel Islands without VAT. There is talk of closing this loophole.

The status of the Channel Islands is of course ridiculous. But it allows our political and business leaders to hide their money outside the same tax net which they so gleefully impose upon the rest of us. Strange but true, USA is pressing for the elimination of these and other unjustifiable tax havens.....

[sjc]

Thanks for everyones replies so far.This particular car was manufactured in the UK in 2003 (its a Noble GTO-3R) and registered as a UK car. I was the 2nd owner and sold it to a Guernsey resident a year ago, informing the DVLA. As VAT would have been paid on the car when it was new, surely it can't be paid twice on the same car can it? If so, I've a horrible feeling I won't be buying it as the price is going to then be uncompetitive. Hope not!

[SS2.]

sjc said:

As VAT would have been paid on the car when it was new, surely it can't be paid twice on the same car can it?

I think you'll find it can and is..

[sjc]

Ok, I've now had 3 (pleasant) conversations with 3 different Customs and Excise people all in the same office regarding this. On Tuesday I was told there WOULD be VAT to be paid. On wednesday I was told " NO there isn't", and the same today.The theory being the same as mine that all taxes and VAT were paid before the car left for Guernsey and therefore there is no more to pay as you can't pay it twice on the same car. See on HMRC website "Public Notice" 3,Section 8/ 8.1 form C179B!)However I really want something in writing from them to cover myself, and they haven't replied to 3 E-mails I've sent this week!
It's looking good now , thanks for the replies and I'll keep you informed .........if anyone can stay awake!

[SS2.]

I must admit that was not the way I understood it..

Originally UK car, VAT paid when new.
Car permanently exported to Guernsey, registered as such and ownership changed.
Car to be re-imported to UK from a Special Territory = VAT payable on current value (or so I thought).

Anyway, best of luck sjc and I hope that 2 out 3 of your HMRC employees are correct !

[redgriff500]

If you used to own it and you're having it back...

It seems to me that perhaps you could be 'refunding for faulty goods' rather than buying it, therefore it would be VAT free !

[david_h]

I'm confused. Importing a car back from the channel islands should not result in VAT as it's a second hand car.

VAT isn't chargeable on 2nd hand goods I thought?

[Griff Bitch]

This happened to my sister 4 years ago, she bought a brand new Megane in England, when she got married she went to live in Jersey and had the car re-registered in Jersey. When she decided to sell it, my friend who lived in England wanted to buy it, so it was transported back over to England, but it wasn't released to my friend until she paid the VAT, can't remember the exact figures, but I think my sis sold the car for 10k but because of the VAT thing only received 8.5k. (She could have had the car returned to Jersey and sold it there for 10k, but she couldn't be arsed.)

The rules may have changed but I doubt it.

[anonymous-user]

david_h said:

I'm confused. Importing a car back from the channel islands should not result in VAT as it's a second hand car.

VAT isn't chargeable on 2nd hand goods I thought?

Depends if you are operating under the margin scheme. That is only operable for VAT registered businesses.

[sjc]

Now I'm back to square one! 2 "yes" answers and two "no" answers, and none of the six departmenst will put it in writing. Someone please help!

[SS2.]

I stand by my original comments. If a UK vehicle was permanently exported to the Channel Islands and re-registered as such, and was later re-imported back into the UK (and re-re-registered) then I believe that VAT would be payable on the current market value or an HMRC agreed invoice value of the vehicle.

Edit - but wait, maybe all is not lost - have a read of this about Returned Goods Relief. You may well qualify for relief from VAT on the grounds that you were the original exporter, would also be the importer AND are within time to claim RGR..

Edited by SS2. on Monday 18th June 09:49

[sjc]

Ah well,have come to the end of the road and the car IS VATable. I'm sure eventually they put a it in writing just to get me off their back, and I'm still not convinced they're right.
Still, went and bought a M400 yesterday so I'm a bit happier now!Thanks for all who contributed with advice.

Edited by sjc on Sunday 1st July 18:40