Boss Hogg

Steve - are you sure you tax argument is correct? Export sales are tax free- ie you pay VAT only in your country of residence.

However if in some countries you don't, I can't understand how HM Government demands 17.% from someone importing a dutch-sourced Impreza, yet only 12.5% from a Danish one?

Also insurance companies haven't distinguished between EU and UK sourced cars for many years - as long as the car is to full UK spec in terms of security etc (eg Cat alarm/immob).

1. yes
2. Looking at ads there does'nt seem to be much of a premium for UK cars - all bugeyes are dirt cheap. I'd buy on mileage, condition etc.
3. Again, depends on the buyer and the car. I would, but they person who bought my previously dutch-imported celica paid full whack.
4. No. I wouldn't bother.

Also not sure about all the warranty confusion. If you have a post 01 Dutch/belgian you have a 3 year warranty. You register with IM - the dealer contacts them for any warranty work, and IM liaise with the Subaru belgium/holland to get authorisation. I my warranty work (02 belgain WRX) carried out with no probs. End of.

crispyduck

iTrader: (1)

Boss Hogg - When you import a car HM Customs & Excise will ensure you pay (or have paid) 17.5% tax. They don't care in what EU country it has been paid, just that you have, and provide the evidence. If you pay anything less than 17.5% they ensure you pay the difference. If you don't then you can't register the car as you need the Certificate from them or the agreement that you intend to pay it. Why? They don't really want you doing this especially if the same product is available in this country.

I too do not know where the confusion is over the warranty. It's for the durations as I've stated before and works as you have summarised - simple.
-Steve.

CharlieWhisky

Thanks for the clarification on the tax Steve

So it still comes down to why the EU car +17.5%tax + all the hassle is STILL less than IM charge for the same car

crispyduck

iTrader: (1)

I think it all comes down to the Manufacturer not IM. See the illustration below:

Subaru Japan sell cars around the world e.g. to IM (UK) and Subaru Benelux (Europe?). Each country has different tax rules which effects how much it costs it's citizens to keep a car on the road e.g. any number of the following taxes are applicable; purchase (sales) tax, road tax, emissions tax, fuel tax, etc. and all these need to be weighted against the cost of living/wages. The manufactures try to make it's cars the same 'value' around the world, by altering the discounts on offer.

For example it is quite 'cheep' to own and run a high performance car in the UK compared to that in Belgium. When I imported mine I also spent a week in Belgium and didn't see a single high performance car let alone a Scooby.

So, the Manufacture gives bigger discounts to countries where the cost of ownership is high. This is where the importer gains. Choose a country who gets the best car discounts from the Manufacturer, buy the car from there (usually tax free), and pay the UK's 17.5% tax when you register your car and your laughing.

I am by no means an expert in all this, I only started researching this about 6 months ago before importing mine. I think it's as simple as that, although please correct me if I'm way off the mark.

-Steve.

[Edited by stevecrisp - 1/5/2004 3:46:29 PM]

[Edited by stevecrisp - 1/5/2004 3:47:35 PM]

Boss Hogg

Steve - i don't agree. You pay the Vat only to Customs and Excise in the UK. They do care where the VAT is paid - if you pay any VAT in any other country that money is going to that Government - not the UK treasury. VAT only has to add up to 17.5% because that is the rate of UK VAT - there are different rates in other countries (hence why the cars are cheaper, as car purchase taxes are more expensive).I've imported 3 new cars from the EU now, and I've always had to pay the full 17.5% in the UK, which Customs and Excise calculate for you once you have the car back in the UK.

Re warranty - I wasn't refering to your post, but subsequent ones....

MattW

I was thinking more of corporate\business tax which the individual importers need to pay in order to operate.

Other example of costs would be salaries, premises etc All which could be lower in the countries which sell cheaper.

crispyduck

iTrader: (1)

Added a link to a later thread called Pros and cons of buying a EU import? as it also contains some useful info regarding warranty and fitting PPP on euro-imports.

sickboy

steve,
If I understand your point about the tax I "beleive" you are incorrect.

When you import a car to the UK, you pay UK Customs and Excise 17.5% VAT on the purchase price of the vehicle, period. If you have paid VAT in another country, then it is up to you to reclaim that VAT from said country (using your UK VAT receipt as proof of payment of VAT). There is no difference calculation involved at all.
For some countries, you do not need to pay the VAT at source, if you can prove you are permanently exporting the car (but you may need to prove to them subsequently that you have paid VAT in the destination country).



[Edited by sickboy - 1/12/2004 1:17:45 PM]

John P

Sick boy is totally correct. The main reason I bought abroad was because even after I purchased abroad, drove back, payed vat, taxed and registered I had still payed approx £4-5K less than new. At the time I had only 1 year waranty, not to bothered as cars had been coming top in JD powers surveys. Local Subaru dealer is servicing, without any arguements. It must be this country that adds the cost. Either dealers or government. If the car drops off the ferry at holland and the next car gets dropped off in England and the price difference is £7-8K WHERE has that come from. As for selling I will hope to get a fair price in the market.

crispyduck

iTrader: (1)

sickboy, John P, thanks for your confirmation RE: tax, I'm not going mad after all.