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Cars and VAT or IVA. Please put me straight!

Cars and VAT or IVA. Please put me straight!

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Old Oct 30th 2005, 8:53 am
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Default Cars and VAT or IVA. Please put me straight!

Anyone clear this up for me? I think I'm correct in saying all new cars sold in the UK attract VAT. But when cars are resold to 2nd users no VAT is paid. So if you import a bog standard car from the UK to Spain will it be subject to IVA when you import it into Spain?
Also if you are a Permanent Resident the you dont have to pay the 12% registration tax?
So here's the scenario. I'm move to Spain, obtain Permanent Residence, fly back to the UK, drive my car to my home in Spain and there are no taxes to pay! Then I go to my local Traffic Office, pay my 16 euros to register the car in Spain and thats it?
I'm sure there are holes in this somewhere!!!!!!
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Old Oct 30th 2005, 10:56 am
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Default Re: Cars and VAT or IVA. Please put me straight!

Don't think so.

When you take a car out of the UK permantly you first have to inform the DVLA that you are exporting the vehicle.

On arrival in Spain you can legally use the car on British plates until excise licence expires.

Then you have to have the car registered in Spain with Spanish plates. The tax incurred depends upon the age and value of the vehicle. The newer the car the higher the tax.

You may also have to the vehicle tested (similar to MOT).

El Ken.
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