How do I get the VAT back when I export a car from the UK?
If you are buying a VAT qualifying car in the UK and looking to export the vehicle beyond the EU, you will need to know how the VAT reclaim process works. If the correct process is followed you will find you're get a very large cost saving on your export purchase, this can be as much as up to a 20% saving.
Cost saving example, a Range Rover Sport advertised on our website as VAT qualifying will include two prices (1) Total price (inc. VAT) £69,000 (2) Export price (No VAT) £57,000; this equals a saving on the car of £12,000; minus shipping costs (£1500-£2500) equals a total saving on your new prestige car somewhere between £9,500 - £10,500!
It isn't common knowledge that not all car dealers are set up to deal with the VAT reclaim process in house and some dealerships will ask you to cover the VAT until it is returned from the UK Tax Office; we also know of customers from other dealerships who have purchased a car in the UK and never reclaimed the VAT. This is something we want to avoid and eliminate as the process is simple, as long as you have the tools and knowledge in place.
We offer a seamless process for helping you get the VAT back on your exported vehicle; we also will not ask you to pay the VAT upfront – we take care of all of this for you!
Read on to find out more about how to go about this and stay stress-free throughout the process.
A VAT Qualifying Car is a car that has previously been owned by a business or is a brand-new car from a main franchiser. A VAT Registered individual or company buying the car solely for business use or for export outside of the EU can reclaim the 20% VAT from the purchase price.
Option 1 | Reclaiming the VAT yourself
Buy directly from a UK dealer and have the invoice show the amount of VAT you are paying so it can then be reclaimed. You can apply to reclaim the VAT yourself. The documentation must be written and presented correctly, and all information must be present and correct. You will need information about you, your circumstances and details of the car. Be careful that during this process, the car does not get registered to a private UK address, as this can negate the whole application, as the VAT can only be reclaimed if exported outside of the EU.
Option 2 | Via a UK Independent Dealer
You may find a dealership who is willing to process the VAT. These are usually independent dealers and it is not uncommon for them to ask you to cover the VAT while it is being reclaimed. Expensive and inconvenient. This is high risk as there are some instances where the VAT never gets returned. This is where you could land yourself in hot water, with no protection and a large sum of money missing. From this point, it is very difficult to claim anything back. You should not be asked to provide additional information beyond the VAT claim forms and you should feel protected throughout the process.
Option 3 | Via Beck Evans
Beck Evans offer a seamless VAT reclaim as a part of our service. It is a quick, easy and hassle-free process, with no reason to worry. We will not ask you to pay the VAT upfront, this equates to another cost saving e.g. let’s say you are looking at exporting a car to New Zealand and you use another exporter where you have to be pay the VAT upfront, you may then have to pay the duty on that VAT, this adds up – using our service, is overall a more cost effective approach. Our seamless VAT reclaim, is a service we offer every single day and we are used to the intricacies of the paperwork and the finer details of the process.
Did you know we can also reclaim the VAT on commercials, campers/caravans, trailers, motor bikes, plant and machinery and new boats. Speak to a member if the sales team if you want more information.
If you are interested in buying and exporting a car from the UK and looking for the large cost saving that comes with this process, make sure the car you pick is VAT Qualifying. If you also see a car you like the look of elsewhere, you can enlist the help of Beck Evans to support the VAT reclaim process and export process, using our 'Vehicle purchase on your behalf' service.
Our process is simple, easy and designed with the customer in mind. Please get in touch should you have any questions or queries.