Can you tell me about Avoid paying German VAT on a new MH? Forums

FrankiaMH · Last edited by FrankiaMH on Sat Jan 28, 2006 2:55 pm; edited 1 time in total

Hi

I'm purchasing a new Frankia in Germany and have been told that I need to pay German VAT and then UK VAT when I import to the UK. Only then can I reclaim German VAT. Paying two lots of VAT up front makes the purchase expensive.

Is there any way to get out of paying German VAT??

tramp

hi ,
we were looking into buying a hobby 700 new from germany last year and the dealer said we had to pay german tax then they export to holland then reimport to germany then we import to the uk as second hand docs to prove from german seller . so no uk tax to pay.

try to contact "gaspode on the site as i believe he imported from germany with a large saving our hobby would have been £36000 all in saving about 18k
hope this helps

tramp

Hymie

We have imported 2 new Hymers in the last couple of years - and i have to say i have never heard of this vat evasion loophole.

If a secondhand motorhome of less than 6 months* or 6000km* is imported to the uk then vat is still payable here - * may be 12 months.

It certainly is a pain to finance two lots of vat, but if this other method worked i would have thought more people would know about it ?

All i can say is that our german dealer refunded the vat very promptly - 10 days and it was in the bank.

cheers

gaspode · Moderator

In order to avoid paying German VAT the importer must themselves be registered for VAT in the UK. In that case you pay no VAT in Germany but pay in the UK on your normal VAT return. If you play about importing to Holland, then re-exporting you will end up with two or three previous owners on the V5 which is de-valuing your M/H. You could always find someone who is VAT registered in the UK, ask them to import it for you then sell it to you but again - previous owners on the V5.
I really don't know what all the fuss is about, it's straightforward enough, just pay both lots of VAT (do the UK VAT on an overdraft if necessary) then claim back from Germany, the whole process only takes two or three weeks so interest charges should be acceptable considering the large amount of cash you are saving.

beagle

Hi

I placed an order for a new motorhome with a german dealer last week (yippeeeeeeeee) and they simply sent me an invoice without the German VAT included.

Once I've got the van back home I have to complete a form VAT 415 (download from C&E website) and send it to Customs and Excise. They will then send me a VAT demand.

Worth keeping some evidence of the exchange rate on the day of your purchase, just in case it's less favourable on the day they prepare the VAT demand -they state that they will accept your rate if you provide evidence.

Incidentaly, got in touch with local DVLA who sent me form V55/4 which is used for registering the vehicle. They told me I could send it in the post - they might not even need to see thevehicle. (think I'll be posting to this forum to ask how tp fill out this form soon - haven't a clue what some of the fields mean!)

Rapide561

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Hi

Last year I spoke to Susanne Moser at Moser - Hymer dealer.

She said they would sell me a van with zero VAT as it was for export. I would then have paid the VAT in the UK.

Another dealer advised me that when I collected the van, I had to leave a cheque for the VAT element. They would return the cheque to me when I faxed them a confirmation for customs and excise that I had paid UK vat. Had I gone down this road, I would have stopped my cheque as a precaution!!!!!!

Here is a copy of the E mail from the second company

you pay zero vat. But you leave a cheque for the german vat.
We will post you this cheque back as soon as we have a fax copy of your uk registration.
We will not give this cheque to the bank.

When you got a vat no. you don´t have to leave a cheque.

Best regards

Julien

Hymie

Interestingly, we bought both our hymers from one of the dealers mentioned, and the "leave us a cheque" option wasnt available then.

Seems they are competing more with each other to give the best / easiest service to uk buyers.

There are certainly big savings to be had when purchasing there.

cheers

beagle

Here's what my dealer said:

"many thanks for your interest at the KNAUS Sport Traveller 605 DKG.
Here is our tax free offer in Euro with the following extras:
Sport Traveller Paket
Sport Traveller Plus Paket
Integrationspaket
Elektro-Komfort-Package inclusive window regulator, central locking for the driver cabin, adjustable and heatable external mirrors
Delivery charge from factory to us
German logbook
English handbook
COC papers
Export numberplate inclusive third part insurance
2,3ltr. JTD engine / 15er-chassis
Euro 35.885,00
Prise rise for 2,8ltr.JTD-engine: Euro 745,00.

The tax you have to pay in the UK."

(I knocked the price down quite a bit after this Laughing

)

hope this helps

Rapide561

Hi

Based on the price you mentioned - lets call it £25,500 - how much did that save you on Uk price?

Also, what do you allow in your budget to cover headlamp alterations, speedo change over etc?

Thanks

Rapide561