VAT – road vehicles brought into the UK
One of the measures announced as part of the recent Budget was a joint HMRC-DVLA initiative to combat VAT fraud on road vehicles brought into the UK. HMRC have now launched a new consultation document entitled‘Tackling VAT evasion on road vehicles brought into the UK’ on the implementation of a new online notification system to be introduced in 2013 for vehicles brought into the UK for permanent use on UK roads.
The new system will replace existing manual procedures with a mandatory online notification requirement for road vehicles entering the UK for permanent use on UK roads to be notified to HMRC online before the vehicle is registered with the DVLA. This will enable both HMRC and the DVLA to access real-time information on the VAT status of notified vehicles and allow the DVLA to refuse vehicle registration if the VAT is not assessed as secure by HMRC.
The new online system has been designed to streamline and simplify the process for bringing cars to the UK as well as counter significant levels of fraud.