VAT on import from EU of low mileage CBX

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VAT on import from EU of low mileage CBX

Postby Graemesig » Sat Nov 03, 2018 5:04 am

Hi CBX folks,
My first post!
I am looking for my first CBX. I have found one abroad that has got 1,500km from new! I am thinking of buying it, but it is expensive enough at £24,000 and I am worried that I have to pay VAT on top, even though it comes from the EU and so VAT was already paid 40 years ago. I have been trying to research the rules, but these seem confusing. The difficulty is that I found reference to a rule that vehicles are considered “new” if less than 6 months old OR have less than 6,000km.
There are other references to rules for importing classic cars, but no mention of whether they apply to bikes. For cars coming from outside the EU, where 20% VAT would normally apply, there is an exemption for “vehicles of historical significance”. I also found mention that for cars over 30 years old, VAT is reduced from 20% to 5 %.
So, in summary - this bike is 39 years old, has 1000miles on the clock, and is imported to UK from the EU.
Does anyone know if I would need to pay 20%, 5%, or no VAT at all?
Thanks for any advice,
Graeme
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Re: VAT on import from EU of low mileage CBX

Postby Russ » Sat Nov 03, 2018 1:16 pm

Hi Graeme, I got mine from Holland and no duty to pay in the EU, (will this change after brexit......?) there is a helpline to guide you through it all if needed. If there is a tax to pay on a less than 6,000 km just send them a set of old clocks to put on it. I can't see there being a problem, or anyone even checking the mileage :handgestures-fingerscrossed: :D . I'm sure someone on here knows the correct answer though.
Good luck with it bud, that's a nice find.
Russ
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Re: VAT on import from EU of low mileage CBX

Postby EMS » Sat Nov 03, 2018 3:05 pm

Bringing vehicles into Germany, we pay two different fees: 1. Customs Duty: A percentage based on a tariff of the assessed value 2. Import Tax - which is equivalent to the VAT. You get credit for sales tax you paid (proof is necessary) in the country of export.
Between European Union countries there is no customs duty and the import tax is calculated on the difference in VAT between the countries.
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To be misunderstood is the rule.
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Re: VAT on import from EU of low mileage CBX

Postby Goss » Tue Nov 06, 2018 5:56 am

Graemesig wrote:Hi CBX folks,
My first post!
I am looking for my first CBX. I have found one abroad that has got 1,500km from new! I am thinking of buying it, but it is expensive enough at £24,000 and I am worried that I have to pay VAT on top, even though it comes from the EU and so VAT was already paid 40 years ago. I have been trying to research the rules, but these seem confusing. The difficulty is that I found reference to a rule that vehicles are considered “new” if less than 6 months old OR have less than 6,000km.
There are other references to rules for importing classic cars, but no mention of whether they apply to bikes. For cars coming from outside the EU, where 20% VAT would normally apply, there is an exemption for “vehicles of historical significance”. I also found mention that for cars over 30 years old, VAT is reduced from 20% to 5 %.
So, in summary - this bike is 39 years old, has 1000miles on the clock, and is imported to UK from the EU.
Does anyone know if I would need to pay 20%, 5%, or no VAT at all?
Thanks for any advice,
Graeme


Nothing to pay, only registration fees in the UK.

Regards

Goss
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Bike http://www.youtube.com/watch?v=ofjFhEd3
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Re: VAT on import from EU of low mileage CBX

Postby Graemesig » Fri Nov 16, 2018 7:44 am

So..... the update is:
I checked with HMRC by phoning them. It took a while, but in the end I got through to the right department. They confirmed:
- VAT is due on an import from the EU if it is considered "new"
- "new" means less that 6 months old OR less that 6,000km
They recognised the irony of a 40 year old bike being considered new, and told me that when I complete the NOVA import procedure, it MIGHT be that they decide no VAT is due.....but they might not.
They stated that they would not consider the case and make a decision, before the bike is imported. My only choice is to find out if VAT is due after I buy it and import it.
After all that, I decided to buy it anyway. I collect it from Holland on the 27th :-) I guess an opportunity to buy a mint Z with less than 1000 miles on it doesn't come round that often.....
I hope those who replied saying there is no VAT due are correct, as HMRC could not confirm this. I am obliged to state the mileage on the NOVA, and don't feel like submitting a false statement. They anyway ask for a copy of the invoice, which states the mileage.
The good news, is that after years of waiting, I am now a CBX owner.
Can't wait to ride it.......
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Re: VAT on import from EU of low mileage CBX

Postby jnnngs » Fri Nov 16, 2018 12:56 pm

Graemesig wrote:So..... the update is:
I checked with HMRC by phoning them. It took a while, but in the end I got through to the right department. They confirmed:
- VAT is due on an import from the EU if it is considered "new"
- "new" means less that 6 months old OR less that 6,000km
They recognised the irony of a 40 year old bike being considered new, and told me that when I complete the NOVA import procedure, it MIGHT be that they decide no VAT is due.....but they might not.
They stated that they would not consider the case and make a decision, before the bike is imported. My only choice is to find out if VAT is due after I buy it and import it.
After all that, I decided to buy it anyway. I collect it from Holland on the 27th :-) I guess an opportunity to buy a mint Z with less than 1000 miles on it doesn't come round that often.....
I hope those who replied saying there is no VAT due are correct, as HMRC could not confirm this. I am obliged to state the mileage on the NOVA, and don't feel like submitting a false statement. They anyway ask for a copy of the invoice, which states the mileage.
The good news, is that after years of waiting, I am now a CBX owner.
Can't wait to ride it.......


Graeme,

I would put a side note on the NOVA submission making it clear that it's a 40 year old bike, and that the mileage cannot be relied upon as being accurate given it's age. I would like to think that common sense will prevail, but it may be a case of "the computer says no".

Paul.
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Re: VAT on import from EU of low mileage CBX

Postby Graemesig » Fri Nov 16, 2018 12:59 pm

Thanks, that's a good idea. I didn't know you could put a side note.
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Re: VAT on import from EU of low mileage CBX

Postby chrispyduck » Mon Dec 03, 2018 1:09 pm

Have you got the bike yet? Would love to know the story being the bike. Any photos?

Sounds a fantastic deal even if you do have to pay VAT. :handgestures-fingerscrossed:
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Re: VAT on import from EU of low mileage CBX

Postby Graemesig » Mon Dec 03, 2018 1:26 pm

Hi Crispyduck,
Yes, I have the bike :D Picture attached.
IMG_4120.jpg

Still going through the registration process, and I still don't know if I have to pay VAT. HMRC told me they can only confirm after I have imported it!
The story of the bike is as follows:
It seems that the original owner bought 2 of them. One to ride, and one to look at. The one to look at stayed in his living room for years unused. Then in 1998 it was sold to someone who who put it....... in his living room. Then in 2017 it was sold to someone who did less than 1000 miles, and passed it to a dealer, who sold it to me.
Looking forward to actually riding it.
Cheers,
Graeme
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Re: VAT on import from EU of low mileage CBX

Postby CBXTRA6 » Mon Dec 03, 2018 11:56 pm

Graeme,
Is this your car museum in the background?
Nice Stingray !
I will always regret selling my 68... :o
Nice catch on your Z, she is pretty
JP
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Re: VAT on import from EU of low mileage CBX

Postby Graemesig » Tue Dec 04, 2018 2:11 am

I wish it was my car museum in the background :lol:
That photo is from the dealer where I bought the bike. They have some great cars.
http://www.alberssportscars.nl/
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Re: VAT on import from EU of low mileage CBX

Postby daves79x » Tue Dec 04, 2018 7:11 am

Wow! What a time capsule you have there! Do you plan to ride it, or just show it? 2 observations - I'd personally lose those engine guards (although I know they've been favored by you Euro guys forever), and, do you know how the bike ended up with an '80 tail cowl? Kind of odd for a low-mileage original.

Dave
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Re: VAT on import from EU of low mileage CBX

Postby Graemesig » Tue Dec 04, 2018 10:15 am

Hi Dave,
Yes, I plan to ride it. Probably not so much though - it won't be taking me to work in the rain any time soon.
I think you are right about those engine bars, and will be removing them. I can't understand why the owner would have fitted them when the bike was in his living room.
I am also a bit confused about the tail cowl from a A model got onto the bike. I read that sometimes this was retro-fitted to a Z under warranty after the original cracked. I can't imagine though, that the original could have cracked when the bike wasn't used. Any other theories?
I would like to find an original Z tail cowl as the A model one doen't look right on a Z.
Cheers,
Graeme
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Re: VAT on import from EU of low mileage CBX

Postby daves79x » Tue Dec 04, 2018 10:32 am

I have a guess, based on a close-up look of the bike, but don't really want to rain on your parade. I'll tell you if you want, either publicly or via PM. Let me know.

Dave
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Re: VAT on import from EU of low mileage CBX

Postby Graemesig » Tue Dec 04, 2018 10:34 am

Go on then....
If my parade is going to be rained on, it might as well be in public :o
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