At 11pm today (31st January 2020), the UK will leave the European Union following a long and difficult period of deal-making and political turmoil.
So how will this affect car shipping and UK car imports?
Car Import Duty / VAT
A trade agreement was reached meaning you will not have to pay any duty on importing a car into the UK. You will however have to pay VAT on the value of the car you are bringing here.
For example, you are buying a £10,000 Toyota from Germany, you will be liable for £2,000 worth of VAT @ 20%
However, if the vehicle is over thirty years of age, say a nice classic Porsche from Germany. Then there is a reduced rate of VAT at just 5%
It gets even better if you are relocating to the UK from Europe. If you can prove you lived outside the UK at least 12 months and owned the car at least 6 months, then it will be subject to zero VAT and zero duty. This is the HMRC Transfer of Residence scheme
Customs Clearance
Following Brexit customs clearance procedures have changed.
First, you need to ensure the vehicle has been correctly exported from the European country. You will ned the paperwork to prove this on import to the UK.
A proper customs entry must then be carried out (C384 / ToR) and submitted via a customs agent to HMRC
You will then receive confirmation all is good in the way of a NOVA letter, which can be used to register the car with the DVLA.
Car Imports by a Company
From 1st January 2021 (after the transition period), if you are importing the vehicle to the UK as a VAT registered company, you will need to have an EORI number that starts with GB
Vehicle Type Approval
During the Transition Period the EU type approval rules will still apply. In the UK up until 1 January 2021 the existing VCA rules will remain. Therefore, the VCA will continue to act as an EU Technical Service and EU Type Approval Authority. This means that the VCA can continue to issue EU approvals (‘e11’) and they will continue to be accepted in the EU.
UK and EU technical standards will be aligned immediately after 31 December 2020
IVA / MSVA Testing
Following the transition period it is likely type-approvals issued in the UK will no longer be valid for sales or registrations on the EU market.
We would imagine current IVA rules to be continued into 2021
Exchange Rates
A strong GBP will help all stages of purchasing and importing a car into the UK.
From the initial purchase of the vehicle to shipping costs which are billed in USD, the strength of UK currency will make an impact to your car shipping process.