Originally Posted By Martyn Culling
No VAT on an export to outside the EU. Could be the reason...


There is no VAT on new vehicles that are exported within the EU either. If it goes to a dealer the dealer in the member state is responsible for collecting the VAT as applicable in that state. On "new means of transport" if purchased in the UK and exported to another member state the purchaser is responsible for paying the VAT in that state. We purchased our car directly from the factory but had to pay the IVA (VAT) in Italy before we could get the plates. Cheating is not possible because the various states eventually cross reference invoices and VAT payments.

For more information see here

Quote:
In the EC most goods are charged with VAT in the country in which they are purchased. However for a new vehicle, boat or aircraft, VAT will be due in the Member State of destination if:

  • it falls within the definition of 'New Means of Transport' (NMT), and
  • it is sold to a customer who intends to take it to another Member State.

The definition of a Means of Transport within this notice and when it is ‘New’ is common to all EC Member States and is only for the purpose of determining when VAT is due. Other agencies for example, the DVLA may have different definitions.

Peter

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