VAT Reclaim on Export

[wnc1981]

Hi, I have a customer who is exporting a new vehicle to France. In effect he then wants to get the vehicle as a tax free vehicle. I have to buy the vehicle inc of VAT and need to reclaim but I believe you have to provide proof of export to HMRC.

If he picks the car up from the UK and takes it back is a ferry or eurotunnel ticket enough to qualify for proof of export?

 

[David Griffiths]

Hi, I have a customer who is exporting a new vehicle to France. In effect he then wants to get the vehicle as a tax free vehicle. I have to buy the vehicle inc of VAT and need to reclaim but I believe you have to provide proof of export to HMRC.

If he picks the car up from the UK and takes it back is a ferry or eurotunnel ticket enough to qualify for proof of export?

That's easy

No!

Is this a non-registered person - i.e. a private individual? If that's the case, you can't zero rate the sale in any event as it won't be exported outside the EEC

If it's a business registered for VAT in France you can zero rate the sale if you are given a valid French VAT number , and retain evidence that the vehicle has been delivered to France

 

[Truemanbrown]

Hi, I have a customer who is exporting a new vehicle to France. In effect he then wants to get the vehicle as a tax free vehicle. I have to buy the vehicle inc of VAT and need to reclaim but I believe you have to provide proof of export to HMRC.

If he picks the car up from the UK and takes it back is a ferry or eurotunnel ticket enough to qualify for proof of export?

If the customer is picking up the vehicle then the place of supply is the UK and UK VAT has to be charged.

 

[Deleted member 59730]

"If the customer is picking up the vehicle then the place of supply is the UK and UK VAT has to be charged."

Not necessarily. But the VAT has to be paid somewhere. VAT on cars in France is 19.6% which means the saving after Dec 31st will be minimal but there will be an extra 4.6% now.

 

[David Griffiths]

Not necessarily. But the VAT has to be paid somewhere. VAT on cars in France is 19.6% which means the saving after Dec 31st will be minimal but there will be an extra 4.6% now.

2.1% I think

 

[spidersong]

Hi,

I'm afraid several of the posts seem to miss the point that this is a new means of transport going to another EU member state, and as such the rules are different to almost any other goods.

If selling to a VAT Reg party then if you've got a VAT eg number for them, export within 2 months and have commercial evidence of removal, so a ferry or eurotunnel ticket that shows the Vehicle Reg Number or other unique identifier would do, then you can zero rate.

If selling to a non-VAT reg person then you'd need to fill in form VAT411 with that person, and the vehicle must be removed within 2 months and then you can zero rate.

If you don't complete VAT411 then you must account for UK VAT.

If its an unregistered person then they will be required to account for their countries VAT rate when taken into use in the other member state. The scheme is designed to remove any advantage in shopping for a new car in a different country to the one it'll be used in, so that anyone using a new car in a member state pays that states VAT rate.

See notice 728 - New Means of Tranposrt for further details:
http://customs.hmrc.gov.uk/channels...ntent&id=HMCE_CL_000165&propertyType=document

 

[David Griffiths]

Thanks for the clarification on that point.

It seems strange that notice "The Single Market" refers to goods collected by the customer and says that the "standard of evidence required to substantiate zero rating is high" but that a ferry ticket would be accepted. It wouldn't be too difficult to get a ticket, drive off with your nice new vehicle and simply not use the ticket! That doesn't seem to be a high standard to me

 

[spidersong]

It's true that a ferry ticket may not on its own be a very strict form of evidence, but there are various other checks that HMRC can and do undertake themselves, along with the DVLC to police the scheme.

As these are new means of transport, then unless the purchaser is willing to risk driving without car tax, insurance etc in the UK, and provide false details for the registered keeper etc. then use of the vehicle in the UK will be picked up leaving the vehicle liable to forfeiture and a tax charge, as well as criminal prosecution. HMRC are in fairly frequent liason with Ferry companies etc and will be able to check on vehicles that have sailed and haven't. The authorities in the receiving country are informed of vehicles entering their country so thay can extract the relevant payments as well. For commercial transactions then EC sales lists can be cross checked to purchasers etc.

These are all things that can relatively easily be done with vehciles which are after all fairly identifiable and large value single consignments, whereas similar checks for 15,000 washing machine gromits picked up from Basingstoke to go to Bremen are not going to go so well. Ultimately it's a question of risk, looking at how many New Means of Transport are subject to personal export in a given year, as opposed to how many commercial exports take place of other items and the values involved.

 

[airkobe]

hi,
I have a website in Japan selling uk goods such as shoes and clothes,but i am based in the uk and I do direct export. Meanwhile I am VAT registered my only questions is:

1: I know the legislation requires in order to get the vat back on these zero-rated items I have to obtain proper vat receipts.However, the fact is when I purchase at stores most of them do not issue a proper vat receipt. So am i still able to get the vat back? Although I tried to contact retailers asking for proper vat receipts they still do not .