Import used car from EU

[burnet01]

Hi chaps,

I’m thinking to import a used car from the EU (more than 10 years old and less than 30).
I’ve found out we have to pay twice VAT (first to the seller 20% and second time here in UK another 20%).

I’ve not found many people telling their experience after the Brexit, and the very few don’t mention paying twice VAT.
I wonder if the VAT issue put people off of importing cars from EU, or they don’t mind pay twice or some how they have managed to avoid pay VAT twice.

Any thought on this?

[BOR]

It's the same going UK->Germany, but as well as 20% VAT, there is an additional 10% Border charge.

I could be wrong about the 10%. I thought there was no import duty on cars from UK, but it appears to be a "handling charge" rather than import tax.

Another Brexit bonus.

[mcflurry]

burnet01 said:

Hi chaps,

I’m thinking to import a used car from the EU (more than 10 years old and less than 30).
I’ve found out we have to pay twice VAT (first to the seller 20% and second time here in UK another 20%).

I’ve not found many people telling their experience after the Brexit, and the very few don’t mention paying twice VAT.
I wonder if the VAT issue put people off of importing cars from EU, or they don’t mind pay twice or some how they have managed to avoid pay VAT twice.

Any thought on this?

Don't you get the German VAT (MWST) back, as to avoid double tax?

[Olivergt]

mcflurry said:

burnet01 said:

Hi chaps,

I’m thinking to import a used car from the EU (more than 10 years old and less than 30).
I’ve found out we have to pay twice VAT (first to the seller 20% and second time here in UK another 20%).

I’ve not found many people telling their experience after the Brexit, and the very few don’t mention paying twice VAT.
I wonder if the VAT issue put people off of importing cars from EU, or they don’t mind pay twice or some how they have managed to avoid pay VAT twice.

Any thought on this?

Don't you get the German VAT (MWST) back, as to avoid double tax?

That's probably true for a new car, where there is VAT involved, but secondhand goods don't have VAT on them, except when they are exported to another country at which point the other country adds their own VAT.

As someone else mentioned another brexit bonus.

I'm in Ireland and brexit has completely destroyed the market for importing classic cars (over 30 years old).

Pre-brexit, there was a fixed charge of €200? or something to import a classic.

Post-brexit, there is now a 10% import tax and then on top of that 23% VAT applied, so a 10,000 import now costs about €13500.

Taxes and VAT will now apply both ways in and out of the UK, I would advise doing your sums very carefully before embarking on any out of country purchase.

[TwoStrokeNut]

It's an absolute pain the the ass to do now, and you really need a shipping agent or someone to help with the paperwork. that is registered on all of the required systems.

It was dead easy before and the NOVA system took minutes for to complete. Pretty sad.

[cayman-black]

TwoStrokeNut said:

It's an absolute pain the the ass to do now, and you really need a shipping agent or someone to help with the paperwork. that is registered on all of the required systems.

It was dead easy before and the NOVA system took minutes for to complete. Pretty sad.

Yes, I think it's the only reason I wish we were still in the EU.

[AA121]

I thought it was 5% VAT to import a car that is over 30 years old from the EU into the UK?
I've seen something (just over 30 years old) advertised in Germany from a dealer which is approx 130,000 euros but clearly states in the advert that it includes 19% VAT. Would that 19% be payable if the dealer was exporting to UK?

[BOR]

A german dealer will remove the VAT for export, or, help you reclaim the VAT on proof that you have exported it.

Private sales don't normally require VAT however, so nothing to recover there.

Edited by BOR on Tuesday 14th February 12:49

[Olivergt]

AA121 said:

I thought it was 5% VAT to import a car that is over 30 years old from the EU into the UK?
I've seen something (just over 30 years old) advertised in Germany from a dealer which is approx 130,000 euros but clearly states in the advert that it includes 19% VAT. Would that 19% be payable if the dealer was exporting to UK?

I would be very surprised if a 2nd hand car, even from a dealer has VAT involved, that simply doesn't make sense for a number of reasons:

1. It means the total VAT from a car is dependent upon how many times it is sold?
2. VAT, as far as I am aware is only due on the initial sale of an item.
3. It can also be due on an import to another country, normally though you should be able to claim the VAT back from the original country, if systems are in place to facilitate that.

Having said all that, I'm not an expert and very happy to be corrected.

Also note, that the UK is supposed to be setting something up for exporting to the EU, but it looks very complicated:

https://www.gov.uk/guidance/claim-a-vat-related-pa...

[AA121]

Here's a link to the ad;
https://suchen.mobile.de/fahrzeuge/details.html?id...

TBH...even if it was free from the 19% I think it's still a little too pricey especially when adding all the other import costs but just made me think if this was applicable on all the cars.

[BOR]

The 19% would be deducted by the selling dealer (usually after you prove you have exported it).

[Olivergt]

There is a little more information here:

https://www.pistonheads.com/gassing/topic.asp?h=0&...

But not much.

I'm still not convinced that a car which has already been subject to a VAT charge when it was new, can now be subject to another 21K VAT charge when it is sold 2nd hand.

Where is the dealer getting the 21k from to ether refund the purchaser or pay the VAT man?

Let's say he bought it in for 100k, he then has to sell it for 130k just to make a small profit and pay the VAT man, doesn't make sense, would also mean all dealer prices are way too high compared to private sales and no one in their right mind would sell a car to a dealer.

OP I would be treading very carefully until you fully understand exactly what Tax/VAT implications are involved.

[996TT02]

I suspect the VAT calculation is just something that the website does automatically if the dealer sells new vehicles too. It probably should be ignored, only the full price is valid the rest likely just academic, an automatic and irrelevant breakdown of a figure. I am not sure what VAT scenario applies to second hand vehicle sales by dealers, I suspect that if they make 10% on a sale then that 10% would be vattable, as that is the amount you are paying them for the service (but of no concern to the buyer). Certainly VAT can never re-apply in full.