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Buyer beware - VAT


Hair Bear

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Just had a strange conversation with HMRC. I bought a quad bike 8+ years ago and was looking into registering it. I bought it from a farm sale in good faith and paid VAT accordingly but if I can't prove VAT was paid when it was imported (around 1986) I'm apparently now liable for the VAT that may be due!

As I have no clue who the dealer would have been, I'm guessing the importer was Honda, what the hell do I do now?

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Do you still have a recipt for it, or know the auctioners? Rather sounds like they are making this up as they go along. To start with how do they, or you know if the original seller was liable for VAT? and auction terms clearly state, buyers premium, sellers premium and if an item is liable to VAT.

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I would guess if you contact Honda quoting the frame and engine number they will confirm if it is a UK spec quad NOT a grey import, Kawasaki do this for free, Yamaha charge and Honda may do also. Kawasaki confirmed my quad was a UK bike by return of post which enabled me to register it easily. The other issue is a " certificate of conformity " which official imports will have but some private imports may not have. You are lucky, it's a Honda not some here today gone tomorrow Chinese thing :D Obviously if it IS a UK bike Honda should/will have paid VAT on importation. Good Luck :)

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When I needed Honda UK to confirm the age of a motorcycle they charged me £30 for the privilege, I had to write to them with what I thought the bike was and the engine and frame number .

Simon

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I raised this issue a while back, but can't find the post now. It isn't made up. I think it started in Autumn last year. It is a measure intended to counter loss of duty from grey imports.

 

You need to either prove IMPORT DUTY was paid on an imported vehicle (coming from outside the EU I believe) - or else pay VAT in lieu of the import duty. The manufacturer seems to be the only chance of proving legitimate import.

 

If it isn't a legitimate import, the question is - how do you determine the value on which to pay the VAT - and at what rate given the timescale and changing rates of VAT / IMPORT DUTY. HMRC would be the folk to advise, I guess.

 

Best you could hope for is to agree the value as the price you paid for it (nobody can say it was not brought in for the auction as it has never been registered in UK), and pay VAT on this amount. If you paid £1500 for the beast then you're in for a hit of £300 at today's VAT rate. £30 for proof of import by main dealer sounds a small price to pay by comparison.

 

Bizarrely the same would apply to a wartime GMC truck if you were lucky enough to find one stored in a barn in Wiltshire once the end of the war - but what value should the VAT be based on?

 

Isn't life getting complicated…….. :D:nut:

Edited by N.O.S.
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Exactly my point. Are they after 17.5% of the new value? + 27 years interest? or 20% of the value now? Unfortunately the recipt I have only identifies it by make/model, no vin numbers - and the value on that recipt they wouldn't belive - 20% of £68! I will try sounding out Honda and see what they say.

Thanks for the help guys!

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Its all to do with NOVA (notification of vehicle arrival)

The HMRC need to be satisfied that duty has been paid on import (been done to death on here)

Suggets you check the HMRC website and make a NOVA declaration...............you may find there is nothing to pay!

Bit as the NOVA declaration has been made then the DVLA will issue a registration document

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I have a UK registered Mitsubishi GTO grey import which I exported to Europe with my work.

 

When I brought it back the Vat man wanted the vat of a fictitious value it created from thin air.

 

Now I could prove it had been in UK before with UK plates ,it had come from Europe so should be no duty. But I didn't have the paperwork for it arriving in UK the first time(previous owner).

 

the amount was £150

 

Tried challenging it with the AA legal team (waste of time) the general opinion was its such a small amount why are you bothered...

 

So I paid up and have the receipt this time.....

 

God knows how they valued it no pictures no visit just a demand in the post.

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