Tesla import from Jersey to UK?

Tesla import from Jersey to UK?

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Discussion

bmwowner

Original Poster:

4 posts

110 months

Monday 18th October 2021
quotequote all
Just looking for a bit of general advice, please...

I bought a Model X from Jersey, Channel Islands. Got a decent deal (so I thought), and was hoping to import into the UK. It was UK registered with a UK plate in 2017.

I assumed this would mean reimporting would be ex-VAT, since the car was originally purchased in the UK.

After phoning HMRC this morning, I was told since it'd be out of 'free circulation' for over 3 years, VAT would be due at 20% of the sale/book value.

This seems highly unfair and a case of double-dipping, but may well be the case.

Just wondering if anyone could confirm that here, please. If VAT is due, I think I'd probably put it back on the market -- either locally in Jersey or offer it for a fair price in the UK knowing VAT would be due to the buyer on import.

Just weighing up options at present. Cheers in advance.

ashenfie

792 posts

51 months

Monday 25th October 2021
quotequote all
If you have a VAT invoice for then you are ok, I not sure you are "re-importing" it and that maybe where the issues is.

bmwowner

Original Poster:

4 posts

110 months

Monday 25th October 2021
quotequote all
I don't have a VAT invoice because I bought it from a Jersey dealership, and VAT doesn't apply in Jersey.

My issue is that VAT has already been paid on it, when it was first purchased.

So HMRC effectively get the VAT twice -- once from Tesla charging it to the original customer, and once again on the book value of the car at the time of re-import.

Doesn't strike me as fair to double dup, but that appears to be the case -- the car loses its 'free circulation' status after 3 years, it seems.

TooLateForAName

4,812 posts

189 months

Tuesday 26th October 2021
quotequote all
Did the original owner get to claim vat back when they exported it?

darreni

3,935 posts

275 months

Tuesday 26th October 2021
quotequote all
bmwowner said:
J

After phoning HMRC this morning, I was told since it'd be out of 'free circulation' for over 3 years, VAT would be due at 20% of the sale/book value.
This is correct regardless of VAT having been paid previously. It also makes no difference if the VAT on the original purchase was reclaimed or not.

I've just moved back to the UK from Guernsey & have had to get TOR (transfer of residence) approval & NOVA clearance from HMRC to reimport my CSL, even though i bought it VAT paid from the UK 11 years ago. Without this i'd have had to pay VAT when bringing it back.

darreni

3,935 posts

275 months

Tuesday 26th October 2021
quotequote all
bmwowner said:
I don't have a VAT invoice because I bought it from a Jersey dealership, and VAT doesn't apply in Jersey.

My issue is that VAT has already been paid on it, when it was first purchased.

So HMRC effectively get the VAT twice -- once from Tesla charging it to the original customer, and once again on the book value of the car at the time of re-import.

Doesn't strike me as fair to double dup, but that appears to be the case -- the car loses its 'free circulation' status after 3 years, it seems.
Buyer beware, did the dealer not mention that would be liable for the VAT if exported to the UK?