Exporting a VAT Qualifying used car to Jersey

[Nick M.K. 574]

I have a customer for a BMW which he wants to buy here but export it personally to the Channel Islands (Jersey). The car is 2014, 64 reg, VAT Qualifying.

There is NO Vat in the Channel Islands so he wants to buy it VAT Free, either pay me the full price and I refund the VAT element later after he has exported it or just pay the price ex VAT. 

Has anyone dealt with such an export recently??

HMRC Live Chat doesn't work and I've been holding on their phone line for 40 minutes. 

Edited October 30, 2018 by Nick M.K.

[MattR 177]

I'd wait for HMRC for the definitive nswer on this one.But I would suspect he has to pay you in full and try to claim it back himself

[Nick M.K. 574]

1 minute ago, MattR said:

But I would suspect he has to pay you in full and try to claim it back himself

No, definitely not. There is no system for him in Jersey to do that. 

[Nick M.K. 574]

Does anyone have a blank form VAT410 they can post me tomorrow?

[stockedup! 63]

9 minutes ago, Nick M.K. said:

Does anyone have a blank form VAT410 they can post me tomorrow?

Is there not one you can download Nick? Should be some online.

https://www.pdffiller.com/252524157-form-vat-410-pdfpdf-form-vat-410-pdf-

Is that any good?

[Nick M.K. 574]

I found this online, never used this PDF filler before, on my Mac I just get an empty page. 

HMRC said the form is only available on paper, has 4 different coloured copies and they are posting it to me. The deal is happening on Saturday though and I suspect the HMRC will not be using 1st class post :-)

[Stalker 180]

HMRC want us (the seller) do do their work now and do all of the due diligence.

The vat should always be taken as a deposit and then once you have proof of export you can refund the deposit, however if HMRC are not satisfied it’s you that will have to stump up the vat. 

[Arfur Dealy 823]

Nick, give a dealer on Gersey a call, surely they’ll know the answer definitely 

[Nick M.K. 574]

22 minutes ago, Stalker said:

The vat should always be taken as a deposit and then once you have proof of export you can refund the deposit, however if HMRC are not satisfied it’s you that will have to stump up the vat. 

The buyer has agreed to pay that but it's that last bit that bothers me. 

I will get his proof of export etc, then will refund him his VAT and one day, years from now (up to 6) when the HMRC does a check on me and takes a keen interest in this one export deal they might come back and say: you are missing one signature here, a date on this form there, you'll have to pay us back the £2800 VAT that you deducted.

But I like a long distance deal, I like knowing these sort of things and after next year EVERY overseas deal will be subject to these "exporting outside the EU rules*" so I might as well get up to speed and learn them now:

https://www.gov.uk/guidance/personal-export-scheme-notice-707

*For VAT purposes the Channel Islands are considered the same as outside the EU

Edited October 30, 2018 by Nick M.K.

[Ccstew 2]

Must be the week for buying in The Channel Islands I have just been asked the same question about one of my cars.

[Stalker 180]

42 minutes ago, Nick M.K. said:

The buyer has agreed to pay that but it's that last bit that bothers me. 

I will get his proof of export etc, then will refund him his VAT and one day, years from now (up to 6) when the HMRC does a check on me and takes a keen interest in this one export deal they might come back and say: you are missing one signature here, a date on this form there, you'll have to pay us back the £2800 VAT that you deducted.

But I like a long distance deal, I like knowing these sort of things and after next year EVERY overseas deal will be subject to these "exporting outside the EU rules*" so I might as well get up to speed and learn them now:

https://www.gov.uk/guidance/personal-export-scheme-notice-707

*For VAT purposes the Channel Islands are considered the same as outside the EU

I know what you mean Nick, it’s a minefield. I’ve decided not to zero rate. It may lose me a few sales, but it’s not going to lose me any sleep. 

[MattR 177]

Good Luck with this one Nick, but does sound like the risk is all down to you, hardly fair.

[It's me 615]

maybe its a new scam?

[Nick M.K. 574]

So the wrap up on this: 

The customer flew in this afternoon, collected the car and drove off into the sunset. It wasn't a scam. 

HMRC called me with the information I requested: 

They treat this is a personal export outside the EU if the customers collects himself. 

1) Take payment of the car ex VAT

2) Take payment for the full VAT amount as a refundable deposit. 1 and 2 can be done on one invoice or on two separate invoices.

3) Obtain proof from the customer that the car has left the EU within 3 months. This could be transport documents, boat tickets, official customs documents, permanent vehicle registration on Jersey in my case. Keep this proof for 6 years from the date of export. 

4) After receiving his proofs refund him the VAT amount that he paid as deposit. 

[Dave2302 387]

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[MattR 177]

Thanks Nick

Its good to see someone follow up a query with the facts.

[Scooby who 41]

Jersey IS part of UK where trade of goods is concerned 

If you organise the delivery to him then you do not charge him the vat in the first place. You zero rate it for vat but he must provide proof or address etc.

If he organises collection from you, then you charge him vat, once he registers the car in Jersey and provides you with proof of this you then refund his VAT

Edited November 10, 2018 by Scooby who