Reclaiming VAT back on new UK car?

Stevie Dakota

Has anyone bought a NEW car in the UK, imported it straight away and successfully claimed the VAT back from the UK revenue? Is it possible?

Padraig Mor

Stevie Dakota wrote: »

Has anyone bought a NEW car in the UK, imported it straight away and successfully claimed the VAT back from the UK revenue? Is it possible?

You don't need to pay the UK VAT. Dealer just needs to fill out form VAT 411 and off you go. In theory at least. Good luck finding a dealer that doesn't think it's a scam though....

RobAMerc

I seriously doubt you'll find it works out cheaper to buy new in the uk and import privately.

Cars in the UK are actually more expensive than here pre-tax.

It is worth their while buying cars here for export to there though, there used to be a good few guys doing it with BMW's etc. Not sure after the KM change over if they still do.

Stevie Dakota

It is working out at best a 2K saving, €33K v €35K taking VAT and VRT into account.

RobAMerc

Stevie Dakota wrote: »

It is working out at best a 2K saving, €33K v €35K taking VAT and VRT into account.

I am surprised - but 2k is nothing to be sniffed at.

They manufacturers must have dropped their prices in order to quell the numbers heading out foreign and buying new cars tax free there for cheaper.

Padraig Mor

RobAMerc wrote: »

I seriously doubt you'll find it works out cheaper to buy new in the uk and import privately..

There are huge savings to be made. I currently have a 520 on order from the North which will work out €7000 cheaper by importing it. If I had got it earlier in the year, it would have been nearer to 10 grand due to a sat nav offer. These are savings on a discounted Irish price BTW. I priced Saab 9-3s that were 15000 cheaper! Unfortunately I may have to cancel my 520 though. Sob!

Price difference is mainly due to the current strength of the euro, as well as getting dealers to price match online new car brokers.

galwaytt

I presume you've replaced the UK VAT with Irish VAT + VRT - 7k sounds way too much..........although I look forward to being proved wrong....

Padraig Mor

galwaytt wrote: »

I presume you've replaced the UK VAT with Irish VAT + VRT - 7k sounds way too much..........although I look forward to being proved wrong....

Approx figures:

Invoice price from NI dealer: £29708
VAT exclusive price: £25283
Converted to Euro at today's rate (including commission using XE's transfer service): €32160
Plus Irish VAT: €38900
VRT (16% of 92% of Irish list price): €7970
Total: €46900.

Irish List price: €54134
Plus delivery: €55000 approx.

€8000 difference - say €7000 with a discount on the Irish price. Note I could have got it approx €1000 cheaper from England but NI is handier for me.

Stevie Dakota

Padraig Mor wrote: »

Approx figures:

Invoice price from NI dealer: £29708
VAT exclusive price: £25283
Converted to Euro at today's rate (including commission using XE's transfer service): €32160
Plus Irish VAT: €38900
VRT (16% of 92% of Irish list price): €7970
Total: €46900.

Irish List price: €54134
Plus delivery: €55000 approx.

€8000 difference - say €7000 with a discount on the Irish price. Note I could have got it approx €1000 cheaper from England but NI is handier for me.

Given the way you were buying was the dealer amenable to a cash discount as well?

robbie99

RobAMerc wrote: »

I seriously doubt you'll find it works out cheaper to buy new in the uk and import privately.

Cars in the UK are actually more expensive than here pre-tax.

It is worth their while buying cars here for export to there though, there used to be a good few guys doing it with BMW's etc. Not sure after the KM change over if they still do.

Ditto what Padraig is saying. It has swung totally the other way now. Sterling is approx 15% cheaper than eight months ago. Check this graph out. http://finance.yahoo.com/currency/convert?amt=1&from=EUR&to=GBP&submit=Convert

I'm importing a three month old 320d MSport Coupe loaded with all the good extras. I'm paying the Dealer the price of the car ex VAT (after pointing them to the VAT 411 form )

Here's how it's working out for me (2008 320d MSport Coupe w/Leather, Heated Seats, 19" Alloys, Bluetooth, USB, Electric Folding Mirrors)

UK new = £33,640 all in.
IRL new = €56,677 + €850 delivery = €57,527 (and I'm not including the €350 dealer options)

UK price on my motor after a bit of haggling = £27,750
ex VAT (17.5%) = £23,617
Convert to euro (exchange rate earlier
today was .7880) = €29,971
Add the Irish 21% VAT (I'd rather pay
Cowen than Brown) = €36,265
Add estimated VRT (€7,998 - I'm playing
it safe and including all the extras) = €44,263

Therer's another thread around highlighting how nearly new beemers on carzone are being priced more expensive than the same spec new :rolleyes:

€57,527 new from the Dealer down to €44,263 from the UK

Oh, and the same sums on a new, undiscounted car from the UK, full VRT, Irish VAT, will come in at €52,124 which is over €5k cheaper than here and you also get an extra years warrantee

Padraig Mor

Stevie Dakota wrote: »

Given the way you were buying was the dealer amenable to a cash discount as well?

That price includes a 6.5% discount which ain't bad at all! They wouldn't quite match an English broker who would do a 9.1% discount. Found another broker since then who'll do 10% - forgot the name though!:(

When I was originally pricing all this months ago, a base 520d SE manual was looking at approx €38000 all in, compared to €47000 list incl. delivery here.

RobAMerc

holly carp - the car is in the paper !

Stevie Dakota

robbie99 wrote: »

I'm importing a three month old 320d MSport Coupe loaded with all the good extras. I'm paying the Dealer the price of the car ex VAT (after pointing them to the VAT 411 form )

Robbie, can you explain how you got them to knock the VAT off a 3 month old car?

robbie99

Stevie Dakota wrote: »

Robbie, can you explain how you got them to knock the VAT off a 3 month old car?

The thing is that any car that's younger than 6 months old or any car with less than 6,000km on the clock is considered to be new from a VAT point of view - some EU rule. In general VAT on goods is due in the country of origin but there's an exception for cars. VAT on cars is due in the country of destination.

There's a lot of good info here...
http://www.hmrc.gov.uk/vat/consumers-vehicle.htm

The most revelant bit for us would be the following...
Exporting your motor vehicle to another EU country from the UK

If you buy a new motor vehicle in the UK to take to somewhere else in the EU, you'll have to pay VAT on the vehicle in the other country when you arrive there. You won't have to pay UK VAT when you buy the car if you do all three of these things:

• you or your authorised chauffeur personally take delivery of the new vehicle in the UK
• you export it within two months of its supply to you
• you and your supplier complete and sign form VAT 411 and send it to the address on the form

If you sell a new vehicle to someone who is moving to another EU country within two months, you may be entitled to a refund of VAT. This only applies if you aren't registered for VAT in the UK, and you can demonstrate that you have paid UK VAT on the vehicle.
Obtain form VAT 411 New Means of Transport
Find out about exporting vehicles from the UK to other EU countries in VAT Notice 728

I told the Dealer that I didn't want to pay the VAT but at first he insisted that this wouldn't be possible because I'm not registered for VAT. I then pointed him to the VAT 411 form and the clear instructions in it clarified it for the Dealer.

Stevie Dakota

Cheers Robbie, this just gets more and more interesting!

supertemp

Hey guys, I am just looking at doing something similar to this with a car to NZ from the UK. The car is 2010 and has 10000 miles on it, can I still claim the VAT back?

I live in NZ. In theory I could comply with the above 3 point check list and have my personal chaueffeur collect the car, which would be a cousin!