Buy VAT qualifying Vehicles from UK
When considering a vehicle purchase from the UK, the question regarding whether VAT is applicable to UK exports often arises.
To clarify, VAT Free status (VAT Qualifying Vehicles) only applies to those vehicles that are company owned and available for export. Examples of this are:
EX Demo cars owned by the dealer or franchise
EX Lease vehicles that have come off the lease and are available for sale.
When looking on- line for a prospective vehicle it will clearly state “VAT Qualifying” or “VAT Q”
All other privately- owned vehicles for sale are subject to VAT (usually included in the advertised price).
If you purchase a VAT Q vehicle then the process of re-couping the VAT can be a lengthy process. As the seller will often ask for the VAT “up front” and will process the VAT refund upon presentation the Bill of Lading. This is filed in the company VAT returns, which can be up to 6 months intervals.
We at Extreme Global, through our UK associates, offer a streamline system where we use a procurement company as the purchaser. The end result is that the vehicle is bought at the net price, and we sort out the VAT internally with the seller. A small fee is charged for this service.
When considering a vehicle purchase from the UK, make us the first point of call!
Ray Smith, Extreme Global
T: 021 727 476