HMRC target EU car VAT fraud
HMRC have launched a joint initiative with DVLA to combat VAT fraud on road vehicles brought into the UK.
From today, any person bringing a new or used road vehicle into the UK from another EU Member State, or from outside of the EU for permanent use on UK roads, will have to notify HMRC within 14 days of its arrival in the UK and pay or account for any VAT that is due.
In the case of a new road vehicle, private individuals and non VAT registered businesses will be required to pay the VAT due at the time of notification.
In line with other EU Acquisitions, VAT registered customers will continue to make payment via their VAT return.
Under the new scheme, until HMRC have been notified and the VAT paid for on the vehicle, licensing and registration with the DVLA will not be possible.
Vehicles that are specifically excluded from these requirements include
- Visitors bringing their vehicles into the UK temporarily.
- UK residents returning from a holiday with their road vehicle
- Private individuals bringing a road vehicle into the UK from outside of the EU
- Vehicles brought into the UK under secure schemes approved by the DVLA
This initiative follows a recent case where a man was jailed for 12 years for his part in the importation of 7,000 new vehicles.
These cars were imported VAT-free, passed through the chain of fake companies, and eventually sold on to unsuspecting car dealerships across the UK.
Many of the fake companies disappeared without paying the VAT.