Euro Prices
Author
Discussion

Lightningman

Original Poster:

1,228 posts

212 months

Wednesday 25th July 2012
quotequote all
Chaps, when Euro dealers list prices, they often list the price with and without tax. I assume that as we are in the EU, we still have to pay the full price, not the net price? Furthermore, if we did end up paying the net price, the HMRC would ensure we paid VAT on the purchase?

Can anyone clarify this point?

TIA.

Wozy68

5,436 posts

200 months

Wednesday 25th July 2012
quotequote all
Lightningman said:
Chaps, when Euro dealers list prices, they often list the price with and without tax. I assume that as we are in the EU, we still have to pay the full price, not the net price? Furthermore, if we did end up paying the net price, the HMRC would ensure we paid VAT on the purchase?

Can anyone clarify this point?

TIA.
Yup & Yup. Tax will be added at purchase time if within the EU (and this varies). No import tax though.

Lightningman

Original Poster:

1,228 posts

212 months

Wednesday 25th July 2012
quotequote all
Wozy68 said:
Lightningman said:
Chaps, when Euro dealers list prices, they often list the price with and without tax. I assume that as we are in the EU, we still have to pay the full price, not the net price? Furthermore, if we did end up paying the net price, the HMRC would ensure we paid VAT on the purchase?

Can anyone clarify this point?

TIA.
Yup & Yup. Tax will be added at purchase time if within the EU (and this varies). No import tax though.
Cheers.

I expected as much.

Thanks for clarifying


anonymous-user

84 months

Wednesday 25th July 2012
quotequote all
Yeah, wouldn't it be great if we could buy them VAT free from Europe rolleyes

Lightningman

Original Poster:

1,228 posts

212 months

Wednesday 25th July 2012
quotequote all
uktrailmonster said:
Yeah, wouldn't it be great if we could buy them VAT free from Europe rolleyes
It would be; although as we all know HMRC get their pound of flesh (and more!)

What surprises me a little is that as the VAT rates are different from country to country they haven't tried to equalise it when you do cross border purchases. For instance, German vehicle tax is 19% (if I am not mistaken) and therefore, HMRC would ding you with an extra 1% on import.

nickfrog

25,405 posts

247 months

Wednesday 25th July 2012
quotequote all
If you import a car from the EU, the foreign dealer will charge at 0% VAT and you'll pay HRMC the UK VAT when they receive your import declaration (which you need to send so that they return a confirmation that UK VAT has been paid in order to register it here).

The exception is Germany, where you need to pay German VAT up front (frustratingly), then pay UK VAT and then claim a refund of German VAT with the dealer when you can prove UK VAT has been paid.

hartech

1,929 posts

247 months

Wednesday 25th July 2012
quotequote all
As I understand it a UK vat registered business wouldnt need to pay vat on an
import from the EU as long as its for a legitimate purchase for business use but they then charge vat if re-sold in UK. Same works if we sell something to a vat registered EU business for legitimate purposes.

Grant

Edit to add a non vat registered business or individual has to pay it.

Edited by hartech on Wednesday 25th July 18:58

hartech

1,929 posts

247 months

Wednesday 25th July 2012
quotequote all
As I understand it a UK vat registered business wouldnt need to pay vat on an
import from the EU as long as its for a legitimate purchase for business use but they then charge vat if re-sold in UK. Same works if we sell something to a vat registered EU business for legitimate purposes.

Grant