VAT exemption when exporting new vehicles to the EU

legal updates

You may wish to apply extra due diligence when agreeing to complete deals like this or any other VAT exemption scheme.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

One of our clients sold a high value vehicle on which the customer claimed a £40,000 VAT exemption.

The customer introduced a financial intermediary into the equation and they duly set up a deal with a European Finance House and arranged for the vehicle to be exported. The vehicle was invoiced to said European  Finance House and our client was sent photographs of the vehicle bring transported through Calais as proof of export. Everything looked legitimate.

However,  some months later, our client becomes the subject of HMRC enquiries and it transpires that the paperwork supplied by the intermediary was not genuine. The European Finance House existed but they say, they have no knowledge of this particular deal.

Our job then is to get £40,000 out of the customer so it can be recorded as a normal sale and our client can avoid any further investigation by HMRC. The customer was obviously not too pleased about this and instructed a large firm of solicitors to play hard ball. However, after some back and forths and threats of court action, the customer paid up and the file was closed. A good result from a case which had the potential to end badly.  

The intermediary, we assume, will still be operating and so you may wish to apply extra due diligence when agreeing to complete deals like this or any other VAT exemption scheme.

WeRecruit Auto LtdPermanent Automotive Recruitment from an experienced and trustworthy recruitment partner.

We cover roles within all departments and sectors of the Automotive industry, and are here to listen to your specific needs and find the most suitable candidates to fit your business.

Philip StricklandLegal AdvisorRead More by this author

Related Legal Updates

The finance industry focuses on durability, and misses the point!

There is plenty of sound legal authority that makes clear a buyer of a used vehicle must expect that faults will develop sooner or later.

FCA Commission Review: Separating fact from fiction in the wake of scaremongering

Attend a complimentary seminar hosted by the FCA for first-hand information – Scheduled for Wednesday, 24 January 2024.

The FOS reports over 10,000 motor finance complaints: Are we really surprised?

The good news currently is the FCA is focussing its attention on the lender and not our members.

Another victory, but the problem has still not gone away!

The FOS confirmed in the article they had not yet published any final decisions on commission-related complaints.

Small Claims – Paying the Cost(s)

When we tell you to settle claims with finance companies because it is too financially risky to go to court, this particular exemption will often be the reason for our advice.

In? Out? Let the court shake it all about!

Costs can be awarded against a party in a small claims hearings if the judge feels that a party has conducted themselves unreasonably.

Not registered as having outstanding finance

A failure to record a new interest or delete an expired one can result in customer complaints, reputational damage and costly legal proceedings.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.