Reasonably tedious VAT query - N-reg to UK
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Reasonably tedious VAT query - N-reg to UK
Could anyone help on this one?
UK-based group contemplating purchase of N-reg a/c currently based in France.
What are the definitive documents needed to proved that 'European' VAT has been paid? The a/c was born c.1992.
Current document presented as 'proof' is a rather incomprehensible Danish-originating invoice/receipt - could be a for an airport landing charge as far as I can judge.
Many thanks.
UK-based group contemplating purchase of N-reg a/c currently based in France.
What are the definitive documents needed to proved that 'European' VAT has been paid? The a/c was born c.1992.
Current document presented as 'proof' is a rather incomprehensible Danish-originating invoice/receipt - could be a for an airport landing charge as far as I can judge.
Many thanks.
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N reg vat
I think you should be looking for a C88 form which shows that EU VAT has been paid.
Somewhere I have a Danish one, but since we have moved house twice in the last six months it may be difficult to find. If I can i can email it to you to see what they look like.
Somewhere I have a Danish one, but since we have moved house twice in the last six months it may be difficult to find. If I can i can email it to you to see what they look like.
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Thanks for that. We've been sent a copy of the Danish form IM4, which being in Danish isn't easy to understand. I think it's the equivalent of the C88.
I'm assuming, when finally imported to the UK, it has to be the original?
I'm assuming, when finally imported to the UK, it has to be the original?
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There is no actual "import" into the UK. You just have to be sure that the VAT was originally paid. Only thing to be a little careful on is that the Danish route was a 0% VAT route. Given that, it was quite controversial. You need to be very careful you can substantiate.
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Great - many thanks, Michael. PM en route.
Regarding 'import', I have to learn the jargon. HMC&E's Personal Transport Unit advice line has been clogged for days with vehicle enquiries.
The first guy I talked to at HMC&E VAT patiently tried to explain that anything purchased in the EEC was VAT paid and I shouldn't be concerned.....I think the expression is LOL.
Regarding 'import', I have to learn the jargon. HMC&E's Personal Transport Unit advice line has been clogged for days with vehicle enquiries.
The first guy I talked to at HMC&E VAT patiently tried to explain that anything purchased in the EEC was VAT paid and I shouldn't be concerned.....I think the expression is LOL.
Last edited by FlyingGoat; 13th May 2013 at 10:07.
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A C88 is the common EU import proof and looks like this :
http://www.hmrc.gov.uk/forms/c88%281-8%29.pdf
The old, printed sort were green and white paper but the newer ones are computer generated and just black and white.
If you have one your aircraft is imported. That doesn't mean that the importer didn't claim the VAT back! But it is usually enough to send the Douaniers on their way because they don't seem to understand the subtleties of international VAT.
Import into the EU is only done once - so if yours came in through Denmark it would not need to be "imported" into the UK.
After import the aircraft may be sold "plus VAT" or "VAT paid" and the status of the current owner determines which it is. A business owner, who has reclaimed the VAT paid at import, will sell plus VAT. A private owner cannot reclaim VAT and so sells on as VAT paid.
You will need a proper invoice from the seller showing VAT paid status. If you have the C88 keep it as a backup.
Anything that was already in the EU at the time the single market was born is "deemed VAT paid" and can be tricky because there is nothing other than your purchase invoice to back you up.
Moral of this is to keep ALL the paperwork to pass on when you sell the aircraft.
http://www.hmrc.gov.uk/forms/c88%281-8%29.pdf
The old, printed sort were green and white paper but the newer ones are computer generated and just black and white.
If you have one your aircraft is imported. That doesn't mean that the importer didn't claim the VAT back! But it is usually enough to send the Douaniers on their way because they don't seem to understand the subtleties of international VAT.
Import into the EU is only done once - so if yours came in through Denmark it would not need to be "imported" into the UK.
After import the aircraft may be sold "plus VAT" or "VAT paid" and the status of the current owner determines which it is. A business owner, who has reclaimed the VAT paid at import, will sell plus VAT. A private owner cannot reclaim VAT and so sells on as VAT paid.
You will need a proper invoice from the seller showing VAT paid status. If you have the C88 keep it as a backup.
Anything that was already in the EU at the time the single market was born is "deemed VAT paid" and can be tricky because there is nothing other than your purchase invoice to back you up.
Moral of this is to keep ALL the paperwork to pass on when you sell the aircraft.
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Complete due diligence is the best way forward.
What is needed is as much evidence as possible, and preferably validated by the authorities.
All this is easier said than done.
VAT paid and / or reclaimed is irrelevant. The correct procedure at the time the goods were imported is.
The term that needs to be considered is: "In Free Circulation".
Depending on the goods (aircraft) the place of import, importer status, in recent cases point of entry, and the date of import defines the VAT (& duty) paid (if any).
Whatever may or may not be reclaimed afterwards is irrelevant.
The EU has a Single Administrative Document (SAD) that is known as the C88 in the UK. This form has the same layout / format in all EU languages, therefore if you take any foreign language form and compare in to your common language form you will be able to do a rough translation. Especially as the key parts are numerical.
The C88 SAD kicked in in 1988 so a 1992 aircraft should have one.
This document can be, but not always easily, validated as the office of import keeps an 'original' copy, in theory. These days it is generally electronic however scans etc. are kept on file.
Obviously all other documents pertaining to ownership, transfer, sale, purchase etc. etc. should be kept and / or requested as this builds the 'case' should there be any customs queries.
For aircraft, any customs import document should carry an original wet stamp. i.e. the end result of an ink pad and rubber stamp. Regardless of the computer / electronic output of the paperwork.
Be sure that 'Box 1' (top, just right of centre) as 'Declaration / Regime' shows "IM" for import.
Be sure that 'Box 31' (description of goods) includes the aircraft serial number and full description. A tail number alone is not sufficient.
A UK C88 / SAD should look something like this:
http://tinyurl.com/bt6g3q4
Other EU SAD's should be pretty similar.
Apologies, but it has been suitably edited / redacted etc. however the blanked out sections are item specific but I hope it gives a rough idea of what you should expect to see. This one is for an 'N' reg aircraft.
What is needed is as much evidence as possible, and preferably validated by the authorities.
All this is easier said than done.
VAT paid and / or reclaimed is irrelevant. The correct procedure at the time the goods were imported is.
The term that needs to be considered is: "In Free Circulation".
Depending on the goods (aircraft) the place of import, importer status, in recent cases point of entry, and the date of import defines the VAT (& duty) paid (if any).
Whatever may or may not be reclaimed afterwards is irrelevant.
The EU has a Single Administrative Document (SAD) that is known as the C88 in the UK. This form has the same layout / format in all EU languages, therefore if you take any foreign language form and compare in to your common language form you will be able to do a rough translation. Especially as the key parts are numerical.
The C88 SAD kicked in in 1988 so a 1992 aircraft should have one.
This document can be, but not always easily, validated as the office of import keeps an 'original' copy, in theory. These days it is generally electronic however scans etc. are kept on file.
Obviously all other documents pertaining to ownership, transfer, sale, purchase etc. etc. should be kept and / or requested as this builds the 'case' should there be any customs queries.
For aircraft, any customs import document should carry an original wet stamp. i.e. the end result of an ink pad and rubber stamp. Regardless of the computer / electronic output of the paperwork.
Be sure that 'Box 1' (top, just right of centre) as 'Declaration / Regime' shows "IM" for import.
Be sure that 'Box 31' (description of goods) includes the aircraft serial number and full description. A tail number alone is not sufficient.
A UK C88 / SAD should look something like this:
http://tinyurl.com/bt6g3q4
Other EU SAD's should be pretty similar.
Apologies, but it has been suitably edited / redacted etc. however the blanked out sections are item specific but I hope it gives a rough idea of what you should expect to see. This one is for an 'N' reg aircraft.
Odds are that the Danish document you are being offered is the correct one. But check... Lasse Rungholm will be able to answer that question in less than a second.
Whilst the 0% Danish route annoyed other countries, there is nothing 'controversial' or improper about it. It's fully legal and correct. Think avoidance, not evasion.
Cheers, Sam.
Whilst the 0% Danish route annoyed other countries, there is nothing 'controversial' or improper about it. It's fully legal and correct. Think avoidance, not evasion.
Cheers, Sam.
