Import duty on cars from USA???
Discussion
Guys,
Thought I would ask this here as this seems to be the repository of information on such things! :
Clearly if you import a US made car from the USA you will expect to pay import duty and then VAT on top of that. So 10% iport duty then 20% VAT on all that.
However - what if you buy a car in the USA (to import here) that was built in Europe and exported there?? Clearly you will need to pay VAT but am I correct to assume that there would be no import duty to pay???
dealmaker said:
However - what if you buy a car in the USA (to import here) that was built in Europe and exported there?? Clearly you will need to pay VAT but am I correct to assume that there would be no import duty to pay???
The fact that you buy it in the USA, means you'll have to pay the import taxes anyway.Would be different if you'd be able to buy a EU built USA car in the EU... ( which i.e. GM used to do with the Camaros years ago)
Hi,
I was googling this subject and came across this topic. So far my research has shown that this is possible to achieve under certain circumstances. Its all to do with Customs Import Categories. The vehicle is imported not as a vehicle, but as a "collector's item" - like an antique, or work of art. Its covered under an HMRC heading 97.05, which is a special category qualifying for zero import duty and a reduced 5% VAT. Quite a difference to the standard car rate of 10% duty + 20% VAT (over 30% of cost price, and VAT is charged on the freight & handling charges too, so with shipping costs you'll be paying over a third and possibly close to half again on top of the cost of the car!)
There have been a few court cases in the last couple of years that have forced HMRC to allow certain classic cars to be imported under 97.05, and whilst every case seems to be judged on its merits, here's some info I found on th Federation of British Historic Vehicle Clubs (FBHVC) website - sorry if some of it seems a bit "legal speak" but I'm quoting what they seem to have picked up from the legal cases:
QUOTE:
9705 00 00 Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest
1. This heading includes motor vehicles which are:
- in their original state, without substantial changes to the chassis, steering or braking system, engine, etc.,
- at least 30 years old, and
- of a model or type which is no longer in production.
However, motor vehicles are deemed not to be of historical or ethnographical interest and are excluded from this heading when the competent authorities establish that the motor vehicles are not liable to evidence a significant step in the evolution of human achievements or illustrate a period of that evolution.
Such vehicles must also possess the requisite characteristics for inclusion in a collection by:
- being relatively rare,
- not being normally used for their original purpose,
- being the subject of special transactions outside the normal trade in similar utility articles, and
- being of greater value.
UNQUOTE
Not sure how much this helps, but it does show that you can possibly achieve the reduced rate if you can show the car is a collector's piece rather than just being an everyday runabout. Many classics should meet this criteria. There were a couple of cases arising in my searches - the main one being a motor trader who had imported over 20 classic Jags (E-Types etc.) from USA, he had a specialist barrister win his case and this seemed to have opened the door for others to follow suit. The one mentioned in the FBHVC article is more akin to what we're likely to be involved in - a guy imported a 1955 Zephyr convertible from New Zealand in 2005 and using this ruling was able to claim back the standard Duty/VAT he'd paid. You can read the full article here:
http://fbhvc.co.uk/value-for-importation/
Cheers,
Peter.
I was googling this subject and came across this topic. So far my research has shown that this is possible to achieve under certain circumstances. Its all to do with Customs Import Categories. The vehicle is imported not as a vehicle, but as a "collector's item" - like an antique, or work of art. Its covered under an HMRC heading 97.05, which is a special category qualifying for zero import duty and a reduced 5% VAT. Quite a difference to the standard car rate of 10% duty + 20% VAT (over 30% of cost price, and VAT is charged on the freight & handling charges too, so with shipping costs you'll be paying over a third and possibly close to half again on top of the cost of the car!)
There have been a few court cases in the last couple of years that have forced HMRC to allow certain classic cars to be imported under 97.05, and whilst every case seems to be judged on its merits, here's some info I found on th Federation of British Historic Vehicle Clubs (FBHVC) website - sorry if some of it seems a bit "legal speak" but I'm quoting what they seem to have picked up from the legal cases:
QUOTE:
9705 00 00 Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest
1. This heading includes motor vehicles which are:
- in their original state, without substantial changes to the chassis, steering or braking system, engine, etc.,
- at least 30 years old, and
- of a model or type which is no longer in production.
However, motor vehicles are deemed not to be of historical or ethnographical interest and are excluded from this heading when the competent authorities establish that the motor vehicles are not liable to evidence a significant step in the evolution of human achievements or illustrate a period of that evolution.
Such vehicles must also possess the requisite characteristics for inclusion in a collection by:
- being relatively rare,
- not being normally used for their original purpose,
- being the subject of special transactions outside the normal trade in similar utility articles, and
- being of greater value.
UNQUOTE
Not sure how much this helps, but it does show that you can possibly achieve the reduced rate if you can show the car is a collector's piece rather than just being an everyday runabout. Many classics should meet this criteria. There were a couple of cases arising in my searches - the main one being a motor trader who had imported over 20 classic Jags (E-Types etc.) from USA, he had a specialist barrister win his case and this seemed to have opened the door for others to follow suit. The one mentioned in the FBHVC article is more akin to what we're likely to be involved in - a guy imported a 1955 Zephyr convertible from New Zealand in 2005 and using this ruling was able to claim back the standard Duty/VAT he'd paid. You can read the full article here:
http://fbhvc.co.uk/value-for-importation/
Cheers,
Peter.
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