How to get the VAT back on cars exported from the UK.
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How much is VAT on cars? I How to tell if a car is VAT Qualifying? I How can I buy a car VAT free?
If you're buying a VAT qualifying car in the UK and planning to export it outside the UK, it's important to understand the VAT reclaim process. By following the correct procedures, you can achieve substantial cost savings on your export purchase, potentially up to 20%.
How much is VAT on cars?
If you're buying a VAT qualifying car in the UK and planning to export it outside the UK, it's important to understand the VAT reclaim process. By following the correct procedures, you can achieve substantial cost savings on your export purchase, potentially up to 20%.
To explain: if you took the price of a Mercedes GLE advertised for sale for £90,000, the total price to buy the car including the VAT is £90,000. But the export price will be £75,000 as the VAT can be reclaimed and therefore not included in the price. So the saving from buying and exporting a VAT qualifying Mercedes GLE is £15,000 versus buying the same model non-VAT qualifying car.
How to tell if a car is VAT Qualifying?
You can sometimes see that a car is VAT qualifying from the advert. When this is not stated in an advert then we recommend you get in touch. We have the knowledge and expertise to help to get confirmation of a VAT qualifying car and help you with the purchase.
How can I buy a car VAT free?
You might consider four options for buying a car VAT free for export from the UK.
Option 1 I Reclaim the VAT yourself.
This is not possible since the laws changed a few years ago. You or your friends may have reclaimed the VAT in the past but this is no longer possible. We advise that you contact a UK VAT registered business to assist.
Option 2 I Reclaim via a friend’s business in the UK.
If you have friends or family in the UK who are UK business owners, be careful not to assume that they can do this for you. Their business will need to be VAT registered in the UK and they will need to adhere to the VAT reclaim requirements as set out by HMRC.
Option 3 I A UK main dealer or independent car dealer.
A UK dealer may be willing to relaim the VAT for you on condition that you give them the VAT money until the reclaim is successful. This is a very risky position for you as you are not able to influence the process or timeline. Some businesses may reclaim VAT monthly, but some may only do this quarterly which will leave you with a large hole in your finances for over three months. Should they be unsuccessful in their claim, then you don’t really have any leverage to recover your money leaving you in a very difficult and disappointing position.
Option 4 I With VAT Qualifying Car
Unlike most car businesses, we focus solely on sourcing VAT qualifying cars for our clients. It is our expertise and central to the service we provide. We are perfectly positioned to handle the complexity of VAT reclaim for you. So confident, that we don’t ask you to cover the VAT in your purchase. You will always pay the net of VAT price.
If you are keen to buy and export vehicles such as vans, commercial vehicles, pick up trucks, motorhomes and campers then get in touch with us and we will be happy to help.
