Procedures for supplying vehicles under the scheme: supplying the cars
The scheme is available to persons who intend to leave, and remain outside, the EC for at least 6 months. All applications for the supply of tax-free vehicles under the PES are to be forwarded to the Personal Transport Unit (PTU) - see VEXMOTORS1300 - in Dover for vetting.
Supplying new cars
The prospective purchaser completes an application Form VAT 410 and hands it to a motor dealer who operates the scheme. The form includes a declaration that the applicant has read Notice 705 VAT: Buyers guide to personal exports of motor vehicles to destinations outside the EC and will comply with the conditions of the scheme.
The dealer completes his part of the form and sends copies to:
- the PTU, who approve the application, and
- the local Driver and Vehicle Licensing Authority (DVLA) Office (see VEXMOTORS5000), who issue a pink registration book (VX 302) denoting tax-free status.
The applicant must then take delivery of the vehicle and export it within the period allowed.
The conditions of the scheme are detailed in VEXMOTORS2000.
Supplying used cars
The scheme generally works in the same way as for new cars. But the dealer must complete the second-hand questions on the VAT Form 410 and send the form to the PTU as he would for a new car. The key difference is that the used car will already be registered with DVLA; and although no new registration number will be allocated for a PES vehicle which is second-hand, the dealer must apply for a special tax disc (see Notice 705A.VAT: Supplies of vehicles under the Personal Export Scheme for removal from the European Community).
Completion of Form VAT 410
Form VAT 410 is used for new and used cars sold under the scheme.
On receipt of an enquiry from a prospective purchaser, the dealer is required to hand a copy of Notice 705 to the purchaser together with the VAT 410 application form.
The 410 is carbonated and incorporates 4 copies, which should be dealt with as follows:
|Top copy||Blue||HMRC copy to be forwarded by the dealer to the PTU for approval.|
|2nd copy||Green||To be given to the customer for retention.|
|3rd copy||Pink||Dealer copy to be retained to support VAT zero-rating.|
|4th copy||Yellow||To be forwarded to the local DVLA office (see list at VEXMOTORS5000) accompanied by V55 authorizing the local DVLA office to issue a pink log book.|
The Form VAT 410 incorporates a declaration that the applicant has received and read Notice 705, and agrees to comply with the conditions set out on the reverse of the Form VAT 410.
Note: Where a used vehicle is supplied, it is already registered, and the DVLA local office copy will be used to notify the local DVLA office of the vehicle’s export status. It should be sent to the local DVLA office in the normal way. No special log book will be issued in these circumstances.
Action by the purchaser
The purchaser should have:
- read Notice 705;
- completed the declaration on Form VAT 410;
- confirmed the intention to leave and remain outside the EC with the vehicle for at least 6 months;
- confirmed the intention to comply with all other conditions of the scheme; and
- undertaken to remove the vehicle by the due date for export.
The signed VAT 410 is retained by the dealer; the purchaser retains the green copy of the form.