Hi,
A really quick question in regards to VAT on Imports. Who is actually liable for making the 17.5% payment to Customs & Excise?
I purchased a Saxo VTR in Belgium in 2000 (saving £4,000) and got a VAT bill at the end of the quarter for it. I sent a cheque to C&E and heard no more about it.
But, (for those who've been kindly reading and replying to my post about Clio DCi), I'm thinking of importing again, this time through a broker rather than privately. The company based in Holland has given me a quote including 17.5% English VAT, all inclusive of charges etc.
Seems simple, however.. At the bottom of the quote, in very small print it reads "The company is not liable for payment of VAT" even though their quote includes the 17.5% VAT.
Confused? You will be... :-)
James
PS: Broker is: www.unitedmotors.net
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Keep it in Belgium use it there for six months a thousand miles or so and import it to UK free of VAT
James S
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Won't the cost of living in Belgium for six months swallow the amount saved in VAT, or are we supposed to live in a tent and eat grass?
I need to know...........
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:-)
Made me smile that one...
I'm not sure whether to trust a broker or do what I did when I purchased my Saxo and find a dealer, then head over for a day to put a deposit down.
There was an abundance of Citroen dealers in France/Belgium/Holland, so hopefully the same will be the case with Renault?
James
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"find a dealer, then head over for a day to put a deposit down."
Boy, he must have really made you cross..............
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You just keep the car there in a lock up. Go for a good blast round a before you leave to clock up a few miles. It might not be practical for everyone but will save on the VAT.
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James:
The alternative would be to buy a six-month old car here, save having to visit Belgium and have the car now!
I suspect the savings would be very similar
Andy
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"quote including 17.5% English VAT, all inclusive of charges etc."
Are you sure that's the amount they will charge you, or are they just indicating the total cost to you, including UK VAT, as a helpful gesture?
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Let's think about VAT for a minute.
VAT is borne by the consumer at the end of the line. All VAT collected by EU member countries goes into EU coffers (doesn't it?)
So Gordon Brown has no real interest in the amount collected in the UK.
VAT rates differ in member countries.
If you're importing a car, why not allow you to choose to pay VAT in the lower-charging country? (UK or country of purchase).
Zut alors.........just seen the fatal flaw. That would be FAIR, wouldn't it? Damn...............
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A VAT form has to be filled in and given to the VRO when the car is registered. The VRO pass this form to C & E who send a demand to the registered owner in a week or two. You then have a month to pay it, after which they return the demand stamped 'paid'. It's important to keep this receipt as proof that VAT has been paid e.g. if you sell the car. The broker is quoting VAT so that you can see the total cost (as if you can't work it out yourself) but I think this is unusual for dealers or brokers based abroad.
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The situation regarding VAT on an import is this. YOU, the buyer are responsible for paying the VAT on an imported car, even if the agent \ broker says they will pay it for you. Once you have imported the car, you have 30 days to pay the VAT bill and if the agent \ broker does a runner, the C&E will expect you to cough up the dosh. You even have to keep the VAT receipt for 6 years to prove it has been paid.
unitedmotors (who are incidentally one of the better Euro based agents) have a quote system that allows you to compare the price you pay for an import including UK VAT against the UK price. The VAT is only quoted on their site to give you a good idea of what the total cost of the import is. You are not paying VAT in Holland nor will UM pay it for you in the UK.
One point to bear in mind is that Unitedmotors rather naughtily are quoting an exchange rate of 1.60 euros to the pound when infact the real rate you'll get is closer to about 1.56. This has the effect of making the savings look bigger than they will be.
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Watcher,
Thanks very much for clearing that one up for me. I did notice about the exchange rate from United Motors, although when you request a quote, they offer to sell you the currency at the quoted rate through Currencies Direct (based in London). Sounds good, but.. When you get the Euro at 1.60, you still have to pay a large handling charge, which negates the better exchange rate.
Confusing, isn't it. I'm tempted just to buy from Trade Sales or Motorpoint, but would rather buy abroad as its;
a) Cheaper
b) Much friendlier dealers
c) A nice day out for a booze-cruise :-)
James
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The currency transfer charge should be no more than £15 for a same day telegraphic transfer. Anymore thanthat and its being used to negate the exchange rate they quote.
Nothing wrong with using TS or MP but make sure any car youget off them IS to full UK spec. Some aren't which is why they look cheaper.
If wanting to buy from abroad, I'd hold off until the rate picks up to 1.63 or 1.62 but, you could have a long wait.
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When I bought my last car abroad, Natwest did say that if I exchanged more than £7,500, I'd be eligable for thr business rate as quoted on the FTSE that morning.
I lost out as I only changed £6,600, but still did better than the tourist rate. Is it worth asking your bank for a deal, I'm sure they'd oblige, especially if they want to keep your custom :-)
James
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