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HMRC internal manual


HM Revenue & Customs
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Valuation for import VAT: exceptions to the normal rules: re-imports: re-imported ex-Ministry of Defence cars

The Ministry of Defence pays VAT (which they cannot reclaim) on all cars purchased in the UK, even where those cars are for direct export. Any such cars, which are re-imported, are taxable at the standard rate.

Note: Re-imported cars may qualify for relief under the provisions of Regulation 124 and 125 of the VAT Regulations 1995. It is a condition of VAT relief under these Regulations that the goods were last exported by or on behalf of the importers.