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Cars: VAT

Question for Treasury

UIN 136666, tabled on 8 March 2022

To ask the Chancellor of the Exchequer, whether specialist covered car transport companies can access temporary export arrangements for cars being transported into the EU and back to avoid having to pay VAT on the goods on export and then reclaim the same VAT on the return leg.

Answered on

16 March 2022

Where goods, including specialist cover cars, are moved from the UK, they will be free of UK tax and duty on export. Goods exported temporarily may not need to pay VAT when returning to the UK. The goods may be eligible for Returned Goods Relief, which provides relief from import VAT and any customs duty on re-imported goods, provided the conditions are met. These include that the goods are returned within 3 years of export in an unaltered state and under the same ownership. Further information can be found at: https://www.gov.uk/guidance/pay-less-import-duty-and-vat-when-re-importing-goods-to-the-uk-and-eu.

Goods temporarily exported from the UK may be eligible for the EU’s Temporary Admissions procedure, a customs facilitation which allows temporary imports without payment of EU import duties, including VAT. ATA Carnets may also be an option. These simplify customs processes and allows goods to be imported into the EU without the payment of duty. ATA Carnets are issued by the London Chamber of Commerce in the UK.

Answered by

Treasury