Taxfree car import

[Chezstevens]

A new twist for Sunday Driver!!

Good morning,

I have been offered a NATO job in Italy that allows a new taxfree car every 12 months - lucky me.  I would obviously like to share this largesse with my family who will remain in france. I would like to buy a taxfree LHD car in the UK, keep it in Italy for 12 months and 1 day then transfer ownership to my wife in France - rather than swop the car every 12 months with a dealer.  I would then purchase another car for my use.

So:

Do I need to re-register the car back in the UK before matriculation in France?

Will there be any tax liability in France (considering it will be a NATO job)?

Grateful for information on regulations that may help or hinder.  I am asking these questions early so that I can make an informed decision before purchase and so remain within the law.  If the system allows what I am contemplating then excellent however I fear as always there will be a fly in the ointment!! 

regards

Vern 

[Sunday Driver]

Do I need to re-register the car back in the UK before matriculation in France?

No.  You will simply be importing an Italian registered car, so the Italian registration document (libretto) will be required for immatriculation here.

Will there be any tax liability in France (considering it will be a NATO job)?

If the vehicle is more than six months old and/or has travelled more than 6,000kms then there is no import VAT to pay, regardless of its VAT status at the time of original purchase.

 

 

[Chezstevens]

Thanks SD.  Tried to reply yesterday but site was playing up.

regards

Vern

[bigears]

hi

a  friend of mine worked for nato, he spent 10 years in Italy.  He has been buying tax free cars for years now.  He found that he could buy I think mercedes at diplomatic rates in Italy and sell them after using them for 6 months back in the uk.  They were rhd cars.  He moved on to buying bmws always top spec.  I beleived he made a profit.  You are a lucky person, everthing tax free, enjoy it.

[Chezstevens]

Hi SD,

I have bought a taxfree Renault Scenic in Italy.  Looking to matriculate in November via Melle Tax Office - unfortunately the lady in Melle Tax Office says that we must pay our taxes somewhere, she acknowledges that I am in NATO but says it makes no difference.  Is there any particular legislation, in french would be handy, I can gently cuff her around the ears with - others have said she obstructs rather than helps.

 

The alternative is to import it to the UK, sell it to my sister for a day and then buy it back with a sale invoice - I would rather not go thru that nonsense!!

Thank you in anticipation

Vern

[Sunday Driver]

Vern

It's all explained on the [url=http://www.douane.gouv.fr/page.asp?id=31]French Customs website[/url]:

Vous achetez un véhicule dans un Etat membre de l'Union européenne

Au regard de la réglementation douanière, sont considérés comme communautaires les véhicules qui ne sont pas passibles de droits et taxes dus à l'importation, soit parce qu'ils sont d'origine communautaire, soit parce que lesdits droits et taxes ont été acquittés à l'entrée dans l'Union européenne.

La taxe sur la valeur ajoutée (TVA) est due lors de l'acquisition d'un véhicule neuf (c'est-à-dire un véhicule âgé de moins de 6 mois à la date de livraison ou ayant parcouru moins de 6 000 km). Elle doit, de ce fait, être acquittée dans le pays de résidence de l'acquéreur. Pour les résidents français, conformément aux règles nationales en vigueur, elle doit être acquittée auprès de l'administration fiscale (il faut se rapprocher de la recette des impôts du domicile pour les particuliers et du centre des impôts du principal établissement ou du siège social pour les assujettis et les personnes morales non assujetties identifiés à la TVA).

Tax free vehicles are usually supplied on the basis that they must leave the country of purchase within a short time, so that they will still be classified as a 'new means of transport' when they arrive in the destination member state and therefore subject to import VAT there.

The NATO scheme is clearly different, so she may be regarding it as a standard tax free purchase where VAT would be payable.  If you contact the NATO scheme administrators, they will be able to give you chapter and verse.