VAT on UK Import

S

Siena

Guest
Hi

I am looking to import a car form the UK very soon. I have sourced a car, which is 6 months old and has more than 6000km. This is a private sale car with one owner. The owner purchased the car new VAT exempt as he has a disabled family member. My question is will I have to pay VAT if I import it?
 
I haven't run across this one before, but my first thoughts are that as a private transaction between non-registered individuals, it doesn't actually matter that it was VAT-exempt when new. (I'm not an accountant or VAT expert).

VAT-registered UK 2nd-hand car dealers have VAT on the difference between their purchase price and selling price; their gross margin includes a 15% VAT element. Private individuals selling or buying 2nd-hand cars to / from other private individuals don't have to account for VAT.

Does your purchase price reflect the fact that the car was VAT exempt? It should be a bargain.

Was the car converted and has it been converted back?
 
I managed to contact the VRT office and was told that I must pay VAT if I import the car. I was told that under EU law VAT has to be paid at some point on all cars. Unless I'm going to use the car for disability purposes I cannot claim VAT exemption. There were no conversions carried out to the car, its an MPV so I guess it was the size of the car that mattered for the owner. The price is very keen and well worth considering but I doubt I'll benifit in full from the seller's original VAT exemption.
 
If you purchase the car privately from the current owner, what documentation would you legally possess that shows whether VAT was or was not paid on the initial purchase of the car?

If the current owner had not told you they purchased it VAT exempt how would you ever know and therefore how would you be able to declare it on importation.
 
Hi petrolhead after speaking to someone who has recently imported a car from a private seller and was not required to provide any VAT documentation etc for regristration I tend to agree with you. Thanks.
 
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