The forces favourite for new car bargains Who qualifies for Tax Free Sales?
You can buy a car tax-free, so long as you remove if from the UK within two months of registration, if going to another EU country, (Customs form VAT 411), or within six months if going to a country outside of the EU, (Customs form VAT 410). Some manufacturers also give a discount to certain categories of customer, and Ford not only gives the most discount, but they do not add a UK delivery charge. (Some manufacturers charge £500 -£600 for UK delivery).
Tax-free cars are normally registered when you return a completed customs form, which we will send you. If your car is being shipped overseas without you collecting it from UK dealership, it would be classed as a Direct Export, in which case, no customs form is required. However, if brought back into the UK, it would be regarded as an import. (Cars collected by the purchaser from a UK dealership would be UK registered on a "pink log book", and not classed as an import if brought back to the UK).
Tax-paid cars for UK use:
If a car is purchased in the UK with no intention to export it, UK VATof 20% would be payable, and the car would be classed as tax-paid. You would also be required to pay UK road tax (VED), if applicable. Some manufacturers will also extend their Military/Diplomatic discount to customers buying tax-paid cars, and again, Ford are the most generous.
British Forces on Continental postings
Due to their Privileged Status, British Forces do not pay taxes provided they are on a minimum six months posting. At the end of this period*** they may bring the vehicle back to the UK without there being any VAT liability. Please note that as this is the individual's entitlement, only they or their spouse/partner can register the vehicle upon their return to the UK. (If an un-married partner will be registering the car, it's worth getting permission in writing from the DVLA in Swansea).
When re-registering a car being brought back into the UK, please note that you must have: BFG 414, UK insurance (not a green card), current MoT if over 3 yrs old, proof that it was registered in another EU country, original registration document (normally this would be a pink log book), and you will be required to buy 6/12 months road tax. The Vehicle Registration Office (VRO) will supply the V55/5 form which you will need to complete.
*** BFG has its own set of rules, which you should familiarise yourself with if they apply to you. For example, you need to BFG register your new car within 30 days of arriving in Germany, and retain the vehicle for a minimum of 12 months from date of BFG registration, or face a 5 yrs ban on buying another tax-free car.
Diplomatic and Consular staff
Individuals and Legislations posted to the UK who, provided they meet the criteria laid down by the Foreign and Commonwealth Office Privilege Department, may purchase a vehicle without VAT or Road Tax for the duration of their stay in the UK. Subsequent disposal in the UK unless it is to another privileged individual will mean payment of VAT on the residual value.
Foreign Servicemen
If you are posted to the UK you may be entitled to purchase a vehicle free of VAT and Road Tax for the duration of your stay. Subsequent disposal of the vehicle in the UK to anyone other than another privileged individual will result in VAT having to be paid. Check with your Admin Office to see if you qualify. They will give you a Form C941.
Personal Export (Customs form VAT 410)
Individuals wishing to purchase a tax free vehicle for shipment to a country outside of the EU. They are entitled to usage of six months in the UK prior to export if they so wish. Companies wishing to export vehicles abroad are also entitled to do this but cannot use the vehicle in the UK beforehand.
New Means of Transport (Customs form VAT 411)
This is the method whereby an individual or company can purchase a tax-free vehicle in one Member State, and transfer it to their State of Residence. (This residence may be temporary, but must be of at least six months duration). Duty would then be payable in the State of Residence, unless exempt from doing so.