HOW TO RECOVER 20% VAT WHEN BUYING YOUR VEHICLE FROM THE UK

ShipfromUK.com, in collaboration with our partner, can assist vehicle buyers in the recovery of VAT (20%) for a small fee on the gross unit price.

How does it work? 

A customer can make a 20% saving when purchasing a VAT qualifying vehicle from the UK and permanently exporting it. We can help recover the sales tax if buying cars from the UK. VAT (Value Added Tax), similar to GST (Goods and Services Tax), can be claimed for a full refund by the government.By using this service you can reduce the total cost on the price of the vehicle, upon export from the UK. However, there are separate terms and conditions you need to agree to (available upon request or at the time of booking).

             

recover VAT UK imported UK cars

The process

  • The customer wishing to use VAT funding, provided by our partner, must sign the Service agreement.
  • VAT Qualifying invoice addressed to our partner from the UK VAT registered vendor is required. (Units that are VAT qualifying include: ex demonstration cars, units previously owned by a company or hire leasing company, brand new vehicles and commercial vehicles). 
  • In response, an invoice to the end buyer for the net value of the vehicle plus their 1.5% fee of the gross value for use of the service is raised by our partner.
  • Our partner purchase the vehicle on behalf of the customer (only once full payment has been received from the end buyer) and SFUK ships the vehicle to the customer.
  • By using this service, customers can recover up to 20% VAT upon permanent export of a vehicle from the UK.
  • This process is also available for new caravans. Enquire today. 

Buying a vehicle at auction

When buying a vehicle through the auction or bid process, there are three categories that used vehicles can be placed in:

1. VAT Qualifying

A UK VAT registered company can claim back UK VAT (currently 20%) from the purchase price of the VAT Qualifying vehicle. This only applies if the vehicle is purchased by the VAT registered company directly from the seller.

2. Marginal Vehicles

There is no way of claiming VAT back out of a VAT Marginal vehicle. This includes breakdown of vehicles that are considered marginal. 

3. Commercial Vehicles

If a vehicle is identified as commercial, 20% VAT will be added to the purchase price, under the same conditions as VAT Qualifying vehicles. This will be re-claimable, but only if strict guidelines are followed.

Our partner:

1. Must purchase the vehicle and be invoiced directly by the UK VAT registered vendor
2. Must be provided with written confirmation certifying that the vehicle is VAT Qualifying
3. Will charge a small fee on the gross vehicle price for this service
4. Net value invoice must be paid in full immediately

Please note that prior approval for VAT removal must be obtained in writing from our partner prior to purchasing the unit.

 

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