Importing cars from the UK – VAT Removal

If you buy vehicles from the UK, there are three VAT categories that used vehicles will be placed in: 

  1. VAT QUALIFYING
  2. MARGINAL
  3. COMMERCIAL

VAT QUALIFYING VEHICLES

A UK VAT registered company can claim UK VAT back from the purchase price, (currently 20%) from a VAT Qualifying vehicle, as long as it is purchased by a VAT registered company directly from the seller, advertising it as VAT Qualifying.

Autohub have engaged a VAT registered company in the UK to work exclusively for AUTOHUB customers, to act on your behalf, in the purchase, and subsequent sale for export (without VAT) to you. This company is “Three Pears Vehicle Solutions Ltd”.(3P)

Three Pears can assist you with these purchases, 

but only if strict guidelines are followed.

  1. 3P must acquire the vehicle on your behalf and be invoiced directly from the UK VAT registered vendor. You should satisfy yourself
    with the Vendor, the Vehicle and the Price, but notify 3P prior to purchase, so that the Vendor Invoice can be made out
    to 3P.   
  2. 3P must be provided with written confirmation from the vendor that the vehicle is VAT Qualifying. 
  3. 3P will charge a handling fee of 1.5% of the gross vehicle price for this service. 
  4. 3P will NOT add any margin to the vehicle price paid, apart from the fee above (3.) .
  5. 3P will invoice you a “Net” value exclusive of VAT as soon as it receives the Vendor Invoice.
  6. The 3P Net value Purchase Invoice must be paid in full immediately. (Whether paid direct, or paid via a finance company).
  7. Any delay in payment may cause the loss of vehicle sale.

COMMERCIAL VEHICLES

If a vehicle is identified as commercial, 20% VAT will be added to the purchase price, but under the same conditions as VAT Qualifying vehicles this will be re-claimable, but only if strict guidelines are followed.

  1. 3P must acquire the vehicle on your behalf and be invoiced directly from the UK VAT registered vendor. You should satisfy yourself
    with the Vendor, the Vehicle and the Price, but notify 3P prior to purchase, so that the Invoice can be made out to 3P.
  2. 3P must be provided with written confirmation from the vendor that the vehicle is VAT Qualifying.
  3. 3P will charge a finance fee of 1.5% of the gross vehicle price for this service.
  4. 3P will NOT add any margin to the vehicle.
  5. 3P will invoice you a “Net” value as soon as it receives the Vendor Invoice.
  6. 3P Net value invoice must be paid in full immediately. (Whether paid direct, or paid via a finance company).
  7. Any delay in payment may cause the loss of vehicle sale.

Note Three Pears must be contacted prior to purchase.

MARGINAL VEHICLES

There is no way of claiming VAT back out of a VAT Marginal vehicle.

Purchase only if you are happy to pay full price.

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