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<\/figure><\/div>\n\n\n\nThe benefit for you is that there are some scenarios where someone purchasing a VAT Qualifying vehicle can do so without paying VAT. As I am sure you are aware, HM Revenue and Customs (HMRC) collect 20% tax on all UK goods and services (with few exceptions) This is known as Value Added Tax or VAT.<\/p>\n\n\n\n
Where Autoshippers come into this equation, and are happy to help potentially save you money, is that one of the scenarios that enable a buyer to purchase a vehicle as VAT Qualifying is when it is being exported outside of the UK.<\/p>\n\n\n\n
You\nneed to be careful though, as this may mean that you are liable for taxes when\nyou import the vehicle into your country of destination, so before you purchase\na vehicle, please check the local Customs websites for clarification of the\ncosts and procedures for duty\/TAX on import.<\/p>\n\n\n\n
There\nare other scenarios where a vehicle can be bought as VAT Qualifying, such as it\nis being used for business purposes, so if you are a taxi driver or a driving\ninstructor you may be able to benefit from the scheme.<\/p>\n\n\n\n
Surely, it\u2019s a complicated process?<\/h2>\n\n\n\n
You\u2019d\nthink so, wouldn\u2019t you?<\/p>\n\n\n\n
The\nmain things to remember are;<\/p>\n\n\n\n
- Make\nsure that the vehicle is NOT REGISTERED to a UK address at any point as then it\ncannot be VAT Qualifying.<\/li><\/ol>\n\n\n\n
- Use\na knowledgeable and dedicated car and motorbike shipping company, such as\nAutoshippers, who can provide you with the correct shipping paperwork.<\/li><\/ul>\n\n\n\n
Some UK dealers may ask you to cover the cost of the VAT, and return it to you once they have reclaimed it. There is a risk that this could result in you not getting your money back, and it can prove difficult to claim anything from the dealer after the fact. Others will handle the whole process without requiring payment of the VAT upfront. We would suggest speaking with the dealer before any money changes hands for details of the process that needs to be followed.<\/p>\n\n\n\n
It\nis possible to reclaim the VAT yourself, you just need to present the correct\ndocumentation to HMRC. Along with the Bill of Sale\/Invoice, you need proof of\nexport, which Autoshippers will supply in the form of a Bill of Lading or\nDeparture Notice, and the export Customs declaration. All documentation will\nneed to be retained for at least 6 years by yourself and the seller, and\nAutoshippers will also keep copies on file.<\/p>\n\n\n\n
This\nall needs to be done (including the export of your vehicle) within 3 months of\nfull payment being made to the seller. If not exported and documentation not\nsent to HMRC within 3 months you will not be able to reclaim the VAT.<\/p>\n\n\n\n
The\nPersonal Export Scheme (PES)<\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.autoshippers.co.uk\/blog\/wp-content\/uploads\/Picture4-2.jpg\")
<\/figure><\/div>\n\n\n\nSame\nthing? Not quite.<\/p>\n\n\n\n
As with a VAT Qualifying vehicle, you can buy from a business that operates the Personal Export Scheme and, potentially, do so VAT-free if you are exporting it from the UK.<\/p>\n\n\n\n
You\ncan even use the vehicle in the UK for a limited period before you export it!<\/p>\n\n\n\n
Yes,\nyou are able to use the vehicle during the last 12 months of your stay in the\nUK if you are an overseas visitor, or 6 months before you leave if you are a UK\nresident. In fact, the vehicle can be driven by your wife, husband or civil\npartner (as long as the person who applied for PES is still in the country) and\nhave permission. This even extends to chauffeurs!<\/p>\n\n\n\n
But something to remember \u2013 if you are involved in an accident that results in your vehicle being a write-off, or it is stolen, the VAT will become due. So, make sure that your insurance covers the value of your vehicle including the VAT.<\/p>\n\n\n\n
What is the process?<\/h2>\n\n\n\n
Firstly,\nyou can only use the Personal Export Scheme if you are buying from a business\nwhich operates it, and will give you an invoice that does not include VAT.<\/p>\n\n\n\n
They\nwill give you either a VAT 410 (used) or VAX302 (new) application form which\nyou need to complete and return to them, remembering to keep a copy.<\/p>\n\n\n\n
The\nforms will confirm the date that you need to export from the UK, and when this\nhappens you need to inform the DVLA. You will then receive a registration\ncertificate which you will need to re-register in the country that you are\nexporting. If you don\u2019t export, then the VAT will become payable. If not paid,\nyou can lose your vehicle.<\/p>\n\n\n\n
This\nscheme can be used by; <\/p>\n\n\n\n
- Overseas\nvisitors who have not been in the UK for either 365 days in the 2 years and\n1,095 days in the 6 years, before the date of application. They must then stay\noutside of the UK with the vehicle for at least 6 months.<\/li><\/ol>\n\n\n\n
- UK\nresidents who intend to leave, and stay outside the UK with the vehicle, for at\nleast 6 months.<\/li><\/ul>\n\n\n\n
Something\nimportant to remember, which is different to VAT Qualifying vehicles, is that\nif you are buying a vehicle and intend to use the PES then you must make sure\nthat you do so at a price that DOES NOT INCLUDE VAT. Once you have paid\nVAT you cannot reclaim it.<\/p>\n\n\n\n
Exporting Your Car with Autoshippers<\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.autoshippers.co.uk\/blog\/wp-content\/uploads\/Picture3.png\")
<\/figure><\/div>\n\n\n\nSo, there you are. Play\nyour cards right and you can potentially save yourself some money using either\nof these schemes. Just make sure that you use the services of a dedicated\nvehicle shipping company such as Autoshippers, who have been exporting vehicles\nfor private individuals for over 20 years and are set up to provide you with\nall of the correct paperwork. <\/p>\n\n\n\n
Get a free quote on our website, give us a call on 0800 389 0784<\/a> \/ +44 (0) 117 982 8123<\/a> or contact us via our website<\/a>.<\/p>\n\n\n\n
Or\nyou check out some of the links below if you need clarification on anything\ndiscussed above;<\/p>\n\n\n\n
VAT on goods exported\nfrom the UK (VAT Notice 703)<\/a><\/p>\n\n\n\n
- UK\nresidents who intend to leave, and stay outside the UK with the vehicle, for at\nleast 6 months.<\/li><\/ul>\n\n\n\n
- Overseas\nvisitors who have not been in the UK for either 365 days in the 2 years and\n1,095 days in the 6 years, before the date of application. They must then stay\noutside of the UK with the vehicle for at least 6 months.<\/li><\/ol>\n\n\n\n
- Use\na knowledgeable and dedicated car and motorbike shipping company, such as\nAutoshippers, who can provide you with the correct shipping paperwork.<\/li><\/ul>\n\n\n\n