Exporting a car from the EU – taxes, insurance, and other aspects you should consider

Are you moving abroad? Here are the ten things that you should keep in mind when taking your car out of the UK.

The export system is commonly carried out in two levels (two-stage procedure). In the first stage, an export declaration needs to be submitted electronically to the customs workplace of export by the use of the ATLAS export IT machine (ATLAS). This is typically the customs workplace accountable for the place the exporter is established or the place the automobile is loaded for export. In the 2d stage, when the car leaves the customs territory, it has to be presented for departure at the customs office of exit.

If the automobile is exported on its wheels powered by way of its very own engine, no longer by way of transport or on a trailer at the back of a motor vehicle, the export declaration may also be lodged without delay with the customs workplace of exit via which the automobile leaves the EU (one-step procedure).

The duty to post-digital export declarations applies to all declarations irrespective of the transport route used (road, air, sea, and rail). For motor cars with a max cost of EUR 1,000 and a weight of up to 1,000 kilograms, an oral or implied declaration to the customs workplace of exit is sufficient.

For an export statement to be lodged, you, as an individual no longer resident in the customs territory of the Union, ought to appoint an individual who is resident in the customs territory to act as customs exporter, who then controls the export operation and resorts the export declaration or has it lodged on their behalf.

Exporting to a non – EU member state

If you intend to export the motor car you bought by using it to a non-EU member state, it is endorsed that you do so by the usage of an export registration plate. The number of the export registration plate needs to then be indicated in the export statement and the registration plate has to be affixed to the vehicle. In any different case, proof of export is no longer ample for VAT purposes. An export registration plate can be bought at any car registration office.

The customs workplace might also require additional files like sales contracts or invoices of the EU resident seller to affirm the assertion or as proof of the legal acquisition of the vehicle. Motor cars that are registered for use in an EU Member State or that endure a red or a temporary registration plate, automobile registration plates that are issued for the domestic test, inspection, and transfer journeys are certainly cleared for export, however, the proof of export is then now not adequate for VAT functions in these cases.

If your proof of export is no longer ample for VAT purposes, you have to furnish the seller with similar certification involving registration, customs clearance, or import taxation in the non-EU member kingdom to be capable to gain from a VAT exemption on buying a car.

Preference Certificate for Tax Exemption

It is feasible under certain circumstances to issue or furnish the desired certificates to declare exemption from customs responsibilities in the country of destination. As a rule, this should be organized using the car provider due to the fact certain files are required to show the vehicle’s origin.

Moving permanently from EU

Permanently if you move to another EU country and take your vehicle with you, you must register your vehicle and pay car-related taxes in your new country. There are no frequent EU guidelines on automobile registration and associated taxes. Some international locations have tax-exemption guidelines for car registration when shifting with the vehicle from one country to another other permanently. To advantage of a tax exemption, you need to take a look at the relevant time limits and prerequisites in the country you desire to pass to.

Moving temporarily from EU

Temporarily if you move to some other EU country without change of your ordinary residence you do no longer have to register your vehicle or pay any registration taxes there. You can keep your vehicle registered in your country of normal residence.

If you are temporarily driving around in your new EU country, you must no longer lend or lease your automobile (still registered in any other EU country) to a resident of that EU country. This is due to the fact the person may want to end up concerned about a fine. You may, however, lend your automobile to buddies or family as they do no longer have their residence in that EU country.

What is VAT?

The Value Added Tax, or VAT, in the European Union (EU), is a common consumption tax assessed on the cost introduced to items and services and applies extra or much less to all items and services that are sold and bought for use or consumption in the European Union.

VAT on Brand New Cars

Brand New automobiles sold in the UK, whether or not pre-registered fashions or ones with transport mileage only, are situated to the complete 20% VAT tax. This VAT is commonly brought to the OTR (On the Road) and has to be introduced on the consignment provided to the buyer.

VAT on Used Cars

Used automobiles typically do now not have VAT added, in view that they will have been paid at the time of preliminary sale or the point it was once imported. When you purchase a new car, the consignment will no longer exhibit any VAT as none will be added.

How to Reclaim VAT?

Any permitted person or commercial enterprise that is VAT registered in the UK and shopping for items or offerings basically for enterprise use, or for the cause of exporting outdoor of the EU, can typically reclaim the VAT on the buy price. Claiming VAT on Brand New Cars is easy as the VAT is now not delivered to the consignment at the time of purchase, purchase Reclaiming VAT on used automobiles requires the automobile to be a VAT Qualifying Car.

What is a VAT Qualifying Car?

A VAT Qualifying Car is a used vehicle which the VAT was once at the start reclaimed with the aid of the buyer. So that a VAT Registered person or enterprise shopping for the automobile completely for commercial use or the export outside of the EU, can reclaim the VAT from the buy price.

VAT on Exported Cars

International consumers are capable to make large financial savings when shopping for a car that is discounted by 20% and consequently want to use the proper business enterprise knowledge on these schemes. 

Taxes for Students

Students that live in any other Member State for the sole cause of pursuing their studies and cross-border employees do not normally have to pay automobile registration and circulation taxes. 

If you are a scholar and you go to another EU country for pursuing your studies, you can drive your vehicle registered in your domestic country without registering it or by paying taxes in your new country. As a student, you ought to be enrolled in an academic institution in that country and be capable to grant a legitimate enrolment certificate. If you begin working all through your studies you will have to register your vehicle in that country.

Before leaving your own country, you have to check the relevant regulations in the place you are going to study. You might also want to fulfil some administrative formalities or meet some conditions to keep away from troubles in the case of police checks.

Cross-border workers and Taxes

As a cross-border employee (work in one country and stay in some other country), you may also want to drive a car that is registered in solely one of the two countries.

If you drive a company car registered in the place you work, you may additionally use it in the place you stay besides having to register it there. Check all stipulations that apply to the use of company vehicles in the EU as the guidelines might also fluctuate considerably.

If you use your vehicle to trip in many instances from the place you stay to the country you work, you have to register it and pay the applicable taxes in the place you stay however no longer in the country where you work.

Penalty factors and fines

You may additionally be fined if you have to register your vehicle however you fail to do so on time or if you do not pay the applicable taxes. If you drive with a number plate from every other EU country except a proof of address in another EU country and a legitimate roadworthiness test.

Exporting cars after Brexit

The EU no longer recognizes e11 kind approvals after Brexit. Some EU kind approvals are acknowledged in the UK. UNECE kind approvals are valid. The Vehicle Certification Agency site has greater records on type approvals.

Transit Number Plates

If you desire to transport a car thru the Netherlands besides a Dutch license plate, you require a temporary transit license number from RDW. The car additionally has to meet a few requirements. You can gain transit license number certificates from one of the RDW inspection stations.

Export Number Plates

The export plates are required. You put the present license plate numbers onto white plates with indelible black ink. You can make these license plates yourself however you want to make certain that they are legible in terrible climate as well. You can additionally have them made at a permitted number plate manufacturer. With these export plates and registration certificates phase II you can drive on Dutch public roads for most of 14 days. During this time your car needs to be insured and have a legitimate PTI (APK).

Certificate of Conformity for cars

If you export a vehicle, you have to deal with import and registration approaches in that country. The manufacture issues a Certificate of Conformity for an automobile that has been constructed under European kind approval. It indicates that the automobile meets the applicable admission requirements. The CVO consists of the technical important points and the EC type-approval number. You will want this registration in an EU Member State.

Insurance for exporting a vehicle

When exporting a vehicle, a green card is additionally required for liability insurance. In that case, the green card serves as a worldwide proof of insurance plan with legal liability coverage. It is legitimate for fifteen days. You can practice for the global proof of insurance plan online. In addition to personal information, you will additionally be required to enter data regarding the car itself. The top rate of the global proof of insurance plan is established on the type of vehicle. It constantly provides insurance for fifteen days when exporting a vehicle.

Green Card as global proof of Insurance

A Green Card has details about your automobile such as the registration number. It proves that you have an insurance plan in the region to be on the roads so you should have it with you when riding abroad. A Green Card covers you for ninety days in 12 months.

On the card, the insurer lists in which nations the auto insurance plan provides coverage. It additionally mentions which automobile is covered, and the period throughout which the automobile is insured. That is no longer all the facts on the insurance card but it commonly lists which (inter)national groups can be contacted in case of an accident, mechanical failure, or theft.

Car export insurance

You have to register separately for each vehicle for export. The green card is an international proof of insurance for your car. It is issued by the insurance company when you take car insurance. You will want temporary insurance for exporting a car.

Breakdown Cover

You may also desire to get a breakdown cowl for an overseas journey in any other case you will be accountable for any restoration charges. You will be supplied European Breakdown Cover at no more price when you request your Vehicle on Hire Certificate.

Vehicle on Hire Certificate

You will want to take a Vehicle on Hire Certificate (VE103) with you when visiting overseas in your Motability vehicle. It proves you can take your hired automobile overseas and will cowl you for 12 months. You should request this at least three weeks earlier than you intend to travel.

European accident document form

During an accident with the car, the green card number can be filled out on the European accident record form. The insurance plan number is accompanied by way of the phrases Country Code/Insurer Code/Number. In the Netherlands, the European accident file structure can additionally be stuffed out except the insurance plan number. The insurance plan organization has the alternative to get admission to data about, for example, the insured and the insurance plan provider. In the case of an accident that includes a vehicle with an overseas license plate, it is additionally suggested to consist of the green card number on the European accident record form.

When you are taking your car to another country or hiring a car when you reach there, you must have insurance legally. But be aware of the terms and conditions in the country of destination and keep in your mind all those we discussed here.



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