Customs duty and VAT

[ghasp!]

Can I ask those of you who have imported your MV from abroad, did you have to pay any customs duty or VAT for bringing it into the country? :dunno:

 

I understand that there might be a 5% VAT bill at the very least. Why does that apply to a purchase I made within the EU? :? Aren't we supposed to be one big happy family now? :whistle:

[TooTallMike]

PM sent.

[Larry Hayward]

Can you share the answer with the rest of us?

[TooTallMike]

Sorry, I only wanted to recount my personal experience in my email. I didn't want to share it on a public website in case I inadvertently incriminate myself. I can let you know if you're interested but I don't want it published for the rest of time. :-)

 

My understanding however is that a private sale within the EU is not liable for any form of duty and that a commercial transaction with a dealer would be liable to VAT equivalent at the rate applicable in the seller's country since that is where the funds will end up. Anyone who knows more about this is welcome to comment since I may well be wrong.

 

I'd be interested to know what has happened in this case.

[John Blackman]

This is one subject where you should get the answer direct from the horses mouth- ie Customs & Excise. Check their website or give them a call.

 

Many (if not most) imports from outside the EU are subject to a) a customs duty, plus b) VAT at 17.5% (our rate not the vendor's) on the value of the item PLUS its shipping cost. Yes, really!

 

Some imports 'slip' through the net, but something the sizeof an mv might not.

 

You never know, there may be some exception relating to articles of historical interest or whatever ( I doubt it) but check with C&E or you could have a nasty surprise.

 

Good luck.

[ghasp!]

When I spoke to the DVLA many months ago, they said that there shouldn't be anything to pay and that VAT form 414 shold be filled out to that effect.

[TooTallMike]

You may just be the victim of a random inspection. It was bought in the EU so assuming all the paperwork is in order there shouldn't be any problem.

 

But as John says, the best thing is to call them and ask them on what grounds you should be paying anything.

[ghasp!]

Having spoken to Customs and Excise I think I have found the cause of the problem. The documents passed to them by the DVLA include the details that my CCKW was purchased in France, but orginiated in the USA. They wanted to be sure that the correct duty had been paid when the vehicle was imported into the EU.

 

I explained that as the vehicle was in all likelyhood brought to Europe by the US army as part of the liberation of Europe, it was quite unlikely any import duty or VAT was paid, mostly because there was a war on and the EU didn't exist then.

 

Now they just want to see some copies of the sale documents and I think the whole thing will be quietly forgotten. :deal:

[ArtistsRifles]

FWIW - when I looked at that DUKW up for sale in Australia I took the precaution of checking first - these are the replies I got from both DVLA and HM Customs and Excise (The VAT man) - might be useful as references????

 

DVLA First:

Thank you for your email.

 

I should firstly mention that DVLA Swansea can only answer general enquiries regarding the import of vehicles into the UK. Specific enquiries regarding the procedures or documentation required must be directed to the DVLA Local Office where the application will be made.

 

You should apply to license and register the vehicle at your nearest DVLA Local Office, as soon as possible after arrival in the UK. A list of Local Office addresses may be found on our website as listed below, or in booklet V100 available at any licence issuing Post Office®. The vehicle must be in this country and available for inspection before you make the application. The only circumstances, in which you can drive the vehicle, are to and from a pre-arranged SVA/MOT test and to and from a garage for remedial work following failure to pass the test. Thereafter the vehicle should be kept off the road until the licensing and registration formalities have been completed. NB. UK law requires a vehicle to be licensed and registered for road use. To avoid difficulties, importers are advised to transport rather than drive their vehicles from the port of entry to home or first destination.

 

Please note applications will not be dealt with over the counter. Applications received outside a Local Office catchment area will be accepted and forwarded to the Local Office nearest the applicant's home address for processing. Provided that the documentation is lodged with the Local Office in this way and the registration requirements have been complied with, the application will normally be dealt with by return of post.

 

Keepers who first license and register their vehicle(s) using application forms V55/4 or V55/5 will have to produce proof of name and address. A new information leaflet INF148 'Licensing and Registering Your Vehicle Using a V55/4 or a V55/5' has been produced giving details of the identity documents required. If you fail to read this information before submitting your application it may cause a delay in your application being processed.

 

The following documents will need to be submitted to the Local Office:

 

• Completed application form V55/4 or if appropriate V55/5:

 

• Form V55/4 is for "brand new" vehicles

 

• Form V55/5 is for "used" vehicles

 

• Appropriate Identity Documentation confirming your name and address

 

• A £38 registration fee (if applicable)

 

• The required fee for the licence

 

• British insurance certificate

 

• The appropriate Customs & Excise form (see fact sheet 1)

 

• Foreign registration document and any other papers you have relating to the vehicle

 

• A current British MOT test certificate for:

 

• Cars, motorcycles, motor caravans and Light Good Vehicles if more than 3 years old

 

• Passenger carrying vehicles with more than 8 seats and taxis (excluding private hire cars) if more than 1 year old

 

• Evidence of type approval (see fact sheet 2)

 

A brand new vehicle can be driven to GB and registered as new provided the vehicle is registered quickly after collection, this is taken as 14 days, has reasonable delivery mileage and it has not been previously "permanently" registered.

 

On receipt of a completed application the Local Office will allocate a registration mark appropriate to the vehicle's date of first use abroad and issue a vehicle excise licence. The papers will be forwarded to DVLC and you will receive a registration certificate for the vehicle within 6 weeks.

 

 

FACT SHEET 1

 

 

CUSTOMS & EXCISE DOCUMENTATION

 

WHAT CUSTOMS FORM DO I NEED?

 

 

C&E 386 This form is issued by Customs & Excise for a vehicle of any age personally imported from outside the European Union (EU).

 

 

C&E 388 This form is issued by Customs & Excise for a Customs restricted vehicle of any age personally imported from outside the EU.

 

C&E 389 This is a self-declaration form which should be used by VAT registered traders for commercial imports from outside the EU.

 

 

BFG 414 This form is issued to all Customs relieved vehicles, irrespective of age, which have been personally acquired within the EU by British Forces Germany personnel.

 

 

VAT 414 This self-declaration form (available at Local Offices) should only be used in the following circumstances:

 

 

a) For NMT vehicles acquired commercially within the EU by VAT registered traders.

 

b) For vehicles not classed as NMTs (ie. over 6 months old and having travelled more than 6,000 kms) which have been acquired from within the EU.

 

 

VAT 415 This self-declaration form (available at Local Offices) should be completed by customers when they have personally acquired a New Means of Transport (NMT) from within the EU. Following licensing and registration the form will be forwarded to Customs & Excise. Please note that a VAT 415 cannot be used for vehicles imported from outside the EU (eg. Japan or the USA - even if the vehicle has been driven to the UK via an EU country).

 

 

NB: New Means of Transport (NMT) vehicles are defined by Customs & Excise as originating from within the EU and are either less than 6 months old or have travelled less than 6,000 kms.

 

 

 

FACT SHEET 2

 

TYPE APPROVAL

 

 

Most cars and light goods vehicles manufactured up to 10 years old need to produce evidence of type approval.

 

For vehicles brought in from the European Union this will take the form of an ECWVTA (Certificate of Conformity (CoC). Copies can be obtained from the manufacturer - a charge is usually made for this.

 

If you have been unable to obtain a Certificate of Conformity for a vehicle previously registered in another Member State prior to import it might be acceptable in the UK under the mutual recognition procedure. Further advice on this can be obtained from the Vehicle Certificate Agency - Telephone 0117 952 4125.

 

Vehicles imported from a non-European country will need to be submitted for an SVA inspection. Until 31 July 2001, one level of test applied to all vehicles. But from 1 August 2001 a more stringent test has been introduced. Enhanced SVA (ESVA). The Basic SVA will be retained only for the following main categories of imported vehicle.

 

 

• "personally imported" vehicle as defined below

 

• any left hand drive vehicle

 

 

From 17 June 2003, motorcycles must either have Type Approval, Motorcycle Single Vehicle Approval or Mutual Recognition. Without such approval or exemption, such motorcycles cannot be registered in GB.

 

WHAT IS A PERSONAL IMPORT

 

 

You are a personal importer only:

 

 

a) if the vehicle has been imported by a person entering the United Kingdom;

 

b) that person had, at the time the vehicle was imported, been normally resident in a country other than the United Kingdom for a continuous period of at least 12 months;

 

c) that person intends to become normally resident in the United Kingdom;

 

d) the vehicle has been in the possession of that person and used by him in the country where he has been normally resident for a period of at least 6 months before its importation; and

 

e) the vehicle is intended for his personal or household use in the United Kingdom. Establishing the criteria of the new "Personal Import" criteria will be the responsibility of the Vehicle Inspectorate.

 

Vehicles over 10 years old are exempt from type approval and from SVA.

 

NB: Vehicles over 3 years old are also required to pass an MOT (Passenger Carrying Vehicles with more than 8 seats and taxis - excluding private hire cars - if more than 1 year old).

 

Further information can be obtained from the booklets "How to Import a Vehicle into Great Britain" (PI5) and "The Single Vehicle Approval Scheme" (SVA4).

 

 

If you would like to request an Import Pack please telephone 0870 240 0010 to use the automated form request service.

 

 

H.M. Customs and Excise:

Thank you for your e-mail dated 26 August 2005.

 

Due to the unusual nature of the vehicle you wish to import, I contacted our Tariff Classification Service on your behalf, to ascertain the commodity code from Her Majesty’s Integrated Tariff of the United Kingdom. The commodity code identifies customs duty rates, VAT liabilities, and other criteria relevant to the importation.

 

They have advised that, provided you would have evidence of the age of the vehicle (i.e. built in 1944) it is likely it would be admitted as a collector’s piece of historical interest under Chapter 97 of the Customs & Excise Tariff. Items under this chapter have a free rate of customs duty (i.e. no duty) and an effective rate of VAT at 5%.

 

In the event your vehicle qualifies under this chapter, the VAT rate would be applied to the total of the cost of the goods plus the freight and insurance charges.

Our Tariff Classification Service have indicated that, should there be no evidence of the vehicle’s age, it would be considered a vehicle under Chapter 87 of the Tariff. Customs duty rates under this chapter range from 1.7% to 22%. The specific rate for your vehicle would depend on the tariff classification. VAT at the standard rate of 17.5% would also be due.

In this event, the customs duty rate is applied to the total of the cost of the goods plus the freight and insurance charges to the UK.

The V.A.T. rate is applied to the total of the cost of the goods plus the freight and insurance charges plus the customs duty.

 

 

I would recommend you contact our Tariff Classification Service for further details as regards classification of your possible importation. They can provide full details on the classification requirements for collector’s pieces. They can be contacted on telephone number 01702 366077 (Monday – Friday 09:00 – 17:00) or e-mail mailto:classification.tso@hmrc.gsi.gov.uk.

Our Public Notice No. 600 – Classifying your imports or exports covers all aspects of the subject. It can be found on our website at http://www.hmrc.gov.uk/ by clicking on the item “Forms, leaflets & booklets” under the heading “quick links”.

Click on the link “Leaflets and booklets published in respect of matters formerly dealt with by HM Customs and Excise”. Scroll down to the heading “Import, Export & International Trade” and click on the link for “Public Notices”.

Notices are listed in number order.

Alternatively, you can obtain a hard copy from our National Advice Service (Telephone 0845 010 9000 Monday – Friday 08:00 – 20:00).

Registration of vehicles in the UK is the responsibility of the Driver and Vehicle Licensing Agency. I see you have copied your e-mail to them. They will reply to your enquiry in relation to this matter.

I hope that the above has been of assistance.

 

 

Yours sincerely