Do we know yet what the duty is on importing used cars from

[VonSenger]

the EU? I have been offered an ex race car in the EU but cant get it in until feb for obvious reasons. I can pay for it and prove its been paid for in Jan but cant bring it in until the lockdown is lifted.

The car wont be road registered and will eventually live between the ring and spa, so Id like to avoid paying duty and vat, especially as its going back out of the country.

I have searched for info but cant find any, no surprise there though.

Any help much appreciated.

[VonSenger]

No one? Wheres all Brexit experts? Don't want to post on npe as i don't think it's the right place

[nickfrog]

I doubt they're will be duties because of the recent zero tariff deal that avoids WTO terms. It's not new so no VAT I would have thought.

Perhaps ask Lizard logistics, he is bound to know. He is on here but I forgot his username.

PS [e-mail]

His mobile number is on his website.

Edited by nickfrog on Thursday 31st December 09:26

[Leins]

Not sure on your side, but we’re being told here in Ireland that any secondhand car coming in from Britain will need VAT and customs paid on it, and then our VRT on top of that if less than 30 years old. This is particularly annoying as I believe VAT has already been paid within the EU on these cars (pre-01/01/2021), and our VRT system was brought in after the EU got rid of customs charges in 1992

So if we imported for example a 1996 E36 M3 valued at £15k, it would probably cost in the region of €30k by the time it’s on the road here due to all the tax, and that’s with a low Sterling value right now. Bit of a disaster for buying interesting RHD cars now, as the domestic Irish market provides little in this regard

Cars coming in from NI are exempt of VAT and excise, but not VRT. However, the rules seem to say it needs to have been in NI since new! Not sure how easy that will be to work with

[PF62]

Leins said:

Not sure on your side, but we’re being told here in Ireland that any secondhand car coming in from Britain will need VAT and customs paid on it, and then our VRT on top of that if less than 30 years old.

A benefit of Brexit.

It will also impact people buying used cars in NI after 1st January where the car has been brought over from GB - https://www.bbc.co.uk/news/uk-northern-ireland-549...

Such cars can't go through the second-hand margin scheme where VAT is only due on the profit, but instead from 1st January VAT will be due on the full selling price, so up to 20% more expensive.

[Leins]

PF62 said:

A benefit of Brexit.

It will also impact people buying used cars in NI after 1st January where the car has been brought over from GB - https://www.bbc.co.uk/news/uk-northern-ireland-549...

Such cars can't go through the second-hand margin scheme where VAT is only due on the profit, but instead from 1st January VAT will be due on the full selling price, so up to 20% more expensive.

Any idea who that VAT goes to then? Does NI have its own separate HMRC? Seems an odd set-up otherwise, whereby EU rules will be forcing NI to pay to a non-EU country

[VonSenger]

nickfrog said:

I doubt they're will be duties because of the recent zero tariff deal that avoids WTO terms. It's not new so no VAT I would have thought.

Perhaps ask Lizard logistics, he is bound to know. He is on here but I forgot his username.

PS [e-mail]

His mobile number is on his website.

Edited by nickfrog on Thursday 31st December 09:26

Thanks for this, I'll give them ago. Got to love the wonderful benefits Brexit has brought us, can't believe we didn't stab ourselves in the face sooner.

[PF62]

Leins said:

PF62 said:

A benefit of Brexit.

It will also impact people buying used cars in NI after 1st January where the car has been brought over from GB - https://www.bbc.co.uk/news/uk-northern-ireland-549...

Such cars can't go through the second-hand margin scheme where VAT is only due on the profit, but instead from 1st January VAT will be due on the full selling price, so up to 20% more expensive.

Any idea who that VAT goes to then? Does NI have its own separate HMRC? Seems an odd set-up otherwise, whereby EU rules will be forcing NI to pay to a non-EU country

The VAT goes to the UK government through the same HMRC.

The issue is that under the WA to protect the GFA NI has to follow EU VAT rules for goods and not the new UK VAT rules. That means anything moving between GB and NI is effectively an export/import and you can't use the second-hand margin scheme for cross border transactions.

In a similar manner, the Retail Export Scheme which will cease to exist in GB from 1 January (much to the disgust of the airport retailers and high end shops in London) will continue to exist in NI, and NI retailers can offer refunds of VAT on goods to visitors who are resident outside the EU and Northern Ireland where they take those goods with them in their luggage when they return home - www.gov.uk/guidance/how-vat-will-apply-to-goods-mo...

Now the point you might have noticed is that it applies to "visitors who are resident outside the EU and Northern Ireland" which of course means it applies to people who live in GB as the UK is not in the EU.

So live in London, go to Belfast, buy your Rolex and put in a RES claim when you fly back. Except... obviously the UK government doesn't want you to do that, hence the "Additional conditions will apply where goods, purchased in Northern Ireland and removed to Great Britain" - which basically mean that if you do that then HMRC will insist you pay import VAT when you land.

Brexit - nice and simple.

[Leins]

Thanks for the detailed reply. It’s all a bit of a minefield from every side it seems

[PF62]

Leins said:

It’s all a bit of a minefield from every side it seems

GB / NI (or NI / GB) transactions will be a *lot* more complicated for businesses after today than GB / EU (or EU / GB) will be.

[anonymous-user]

OK I'm not in UK, but I do live in a county with near 100% in port duty, so a few things may be worth looking at. If its going to exported back, can't you do a temporary import on a carnie? Then I have a mate who can get cars into Malaysia for restoration duty free, have to be kept in bond at his garage, same at Sepang you can get a race car in country duty free for a season, but has to kept at th he Curcuit and go out every year.

[spareparts]

20% VAT on used vehicles - up to 30 years old - even if purchased before 1st Jan 2021 but not yet landed in the UK.

[VonSenger]

spareparts said:

20% VAT on used vehicles - up to 30 years old - even if purchased before 1st Jan 2021 but not yet landed in the UK.

Is this officially documented anywhere?

[Julietbravo]

VonSenger said:

nickfrog said:

I doubt they're will be duties because of the recent zero tariff deal that avoids WTO terms. It's not new so no VAT I would have thought.

Perhaps ask Lizard logistics, he is bound to know. He is on here but I forgot his username.

PS [e-mail]

His mobile number is on his website.

Edited by nickfrog on Thursday 31st December 09:26

Thanks for this, I'll give them ago. Got to love the wonderful benefits Brexit has brought us, can't believe we didn't stab ourselves in the face sooner.

Wait until you try and take your dog on holiday. Seriously though, I understand that if you are moving to the UK then HMRC sign off on a Transfer of Residency - this then allows you to start the conversation with the DVLA via the NOVA process. This might be a good starting point.

Link here: https://www.gov.uk/guidance/transfer-of-residence-...

[fflump]

VonSenger said:

spareparts said:

20% VAT on used vehicles - up to 30 years old - even if purchased before 1st Jan 2021 but not yet landed in the UK.

Is this officially documented anywhere?

20% VAT is the default situation for all items over a certain value (£139 I think).

No import duty importing from within EU, only VAT payable.

Call HMRC helpline to confirm.

Also see

https://www.dvla-contact-number.co.uk/importing-ve...

If you kept the car in the EU then VAT would not be payable of course.

[cayman-black]

Julietbravo said:

Wait until you try and take your dog on holiday. Seriously though, I understand that if you are moving to the UK then HMRC sign off on a Transfer of Residency - this then allows you to start the conversation with the DVLA via the NOVA process. This might be a good starting point.

Link here: https://www.gov.uk/guidance/transfer-of-residence-...

That's good info so if you lived in a EU country and are now returning and bringing your LHD Registered car with you there is nothing to pay.
Also, its no problem to bring pets that are registered in the EU into the UK.