Guidance

Personal Export Scheme (VAT Notice 707)

Check if you can use the Personal Export Scheme and the conditions that apply if you're a buyer or a seller of vehicles.

From:
HM Revenue & Customs
Published
12 January 2014
Last updated
15 September 2021 — See all updates

This notice applies to supplies made on or after 1 January 2021.

It applies to supplies made in Great Britain (England, Wales and Scotland) exported out of the UK and to supplies made in Northern Ireland exported out of the UK to non-EU destinations. References to UK should be construed accordingly.

1. Overview

1.1 What this notice is about

This notice explains the procedures for zero rating the supply of a motor vehicle that is removed from the UK by the purchaser.

It explains which vehicle purchases are eligible and who is entitled to use the scheme.

It also explains how the vehicle may be used in the UK prior to exporting it.

1.2 Changes to this notice

Paragraphs 8.2, 8.3, 8.4, 9.1, 9.2, 12.1 and section 13 have been amended to reflect the fact that Form 410 is now available in download form. Section 15 has been renumbered to section 14.

1.3 Who should read this notice

This notice is intended for both:

  • overseas visitors, or UK residents who intend to remain outside the UK for at least 6 months
  • businesses who wish to sell vehicles under the scheme

1.4 The UK law relating to the scheme

The legal provisions that cover the scheme are contained in:

  • the VAT Act 1994 section 30(8) and 30(10)
  • regulations 117(8), 132, 133, 133D and 133E of the VAT Regulations 1995 — these regulations allow for specific conditions that have the force of law

1.5 Regulations

Under the regulations HMRC may specify conditions for the operation of the scheme and this notice lay down the conditions which must be met in full for a motor vehicle to be supplied VAT free under the Personal Export Scheme.

Some or all of paragraphs 3.5, 4.2, 5.4, 8.3, 8.4,8.5, 10.3, 12.2 and 12.3 have force of law.

2. Basic principles

2.1 The Personal Export Scheme

The Personal Export Scheme allows entitled customers to buy a motor vehicle in the UK free of VAT for export outside the UK. Subject to some restrictions, the vehicle can be used for a limited period in the UK before it’s exported.

Warning – it may be difficult to import motor vehicles into some countries. If you’re thinking of buying a vehicle under the scheme, you should check with the relevant Embassy or High Commission in the UK because additional restrictions, paperwork and costs may apply.

2.2 Who can buy a vehicle under the scheme

The scheme can be used by:

(a) overseas visitors who have not been in the UK for more than either:

  • 365 days in the 2 years before the date when they apply to use the scheme
  • 1,095 days in the 6 years before the date when they apply to use the scheme
  • who intend to leave, and stay outside, the UK with the motor vehicle for at least 6 months

(b) UK residents who intend to leave, and stay outside, the UK with the motor vehicle for at least 6 months

2.3 The type of vehicle you can supply under the scheme

The scheme can be used to supply a new or used:

  • motor vehicle
  • motorcycle
  • motor caravan

It cannot be used to supply:

  • pedal cycles
  • trailer caravans

2.4 If VAT is shown on the customer’s invoice

A vehicle purchased at a price including VAT will not be eligible for a refund even if the customer later exports it to a destination outside the UK.

2.5 Direct exports

There is no need to use the scheme if the vehicle is not going to be used in the UK before it’s exported from the UK. If the vehicle is going to be exported directly, you should read VAT Notice 703: exported from the UK.

3. Basic information about buying a vehicle under the scheme

3.1 Where you can buy the vehicle

You can only buy the vehicle from a business which operates the Personal Export Scheme.

Extras can only be supplied to you VAT free if they’re included on the invoice for the vehicle itself if you order either:

  • a new vehicle with factory-fitted or dealer-fitted extras
  • a used vehicle with dealer-fitted extras

If you do not order them at the same time that you buy the vehicle, you’ll be charged VAT on them.

3.2 How to apply to use the scheme

To apply for the scheme you can either:

You must fill in the form and sign the declaration. You are signing to say that you’ve read and understand sections 1 to 7 of this notice and that you’ll meet all the conditions of the scheme. You must give the completed VAT410 form back to the business. They’ll give you the customer copy, which you should keep.

Warning – it’s an offence to give incorrect information on the VAT410 form. If you do this, you’ll be liable to prosecution.

3.3 When you can apply to use the scheme

You can apply to use the scheme if you are:

  • an overseas visitor and you intend to leave the UK within 15 months of the application
  • an entitled UK resident and you intend to leave the UK within 9 months of the application

3.4 Length of time you can use the vehicle in the UK

You may take delivery and use the vehicle in the UK:

  • during the last 12 months of your stay in the UK if you’re an overseas visitor
  • during the last 6 months before you finally leave the UK if you’re an entitled UK resident

3.5 Who can take delivery of the vehicle

By delivery we mean that the vehicle is supplied to or collected by you in person in the UK by the supplier. When you take delivery of the vehicle, you’ll have to sign a certificate of receipt.

This sentence has the force of law.

The vehicle can only be delivered to the person who applied to use the scheme. If you need somebody else to take delivery of the vehicle for you, you must ask our Personal Transport Unit for written permission (see paragraph 6.1 for contact details).

4. When you buy a vehicle under the scheme and use the vehicle before exporting it from the UK

4.1 Insuring the vehicle

If you cannot export the vehicle because it’s been stolen or involved in an accident and written-off, the VAT you did not pay when you bought it will become due. It is recommended that you insure the vehicle for its full purchase price, including VAT.

4.2 Who can drive the vehicle while it’s in the UK

This is for VAT purposes only, normal road traffic law also applies.

The rest of this paragraph has the force of law.

Anybody can drive the vehicle while it’s in the UK but only if you are also still in the UK.

The vehicle can only be driven by another person who:

or who is:

  • your wife, husband or civil partner
  • a chauffeur

4.3 Temporarily taking the vehicle to a country outside the UK

If you take the vehicle out of the UK before its final date for export, and then re-import it, you must declare the vehicle to customs at the place you re-import.

You must show the customs officer either of the following documents:

  • the pink registration book (VX302) for a new vehicle
  • the VAT410 form for a second-hand vehicle

5. Exporting vehicles bought under the scheme

5.1 When you must export the vehicle

You must export the vehicle within:

  • 12 months of the date it was delivered to you if you are an overseas visitor
  • 6 months of the date it was delivered to you if you are an entitled UK or EU resident

5.2 The last possible date by which you must export the vehicle

If the vehicle is:

  • new, its final date for exportation will be on the pink registration book (VX302)
  • second-hand its final date for exportation will be on the VAT410 form

5.3 What you need to do when you export the vehicle

You must tell the Driver Vehicle Licensing Agency (DVLA):

  • if your vehicle is new you must fill in the tear-off section of the pink registration certificate (VX302) and send it to the address on the document
  • if your vehicle is second-hand, fill in the relevant section of the vehicle registration certificate (V5C) to notify change of keeper, then send the whole document to the address on the document

The office will send you a registration certificate. This will allow you to re-register the vehicle in the country you’re taking it to.

If you plan to leave the UK less than 14 days after buying the vehicle, you should tell the motor dealer before you buy so that they can tell the DVLA about the export. You’ll need to take the vehicle registration certificate with you when you leave (this will be in the previous keeper’s name).

You need to make your shipping arrangements in good time so that you can be sure that your vehicle is exported by the due date.

5.4 If you do not export the vehicle

If you do not export the vehicle by the due date the VAT you did not pay when you bought the vehicle will become payable and we can take the vehicle away from you. The rest of this paragraph is force of law.

You must not dispose of, or try to dispose of, the vehicle in the UK by:

  • hire
  • pledge
  • as security
  • sale
  • gift
  • any other means

6. Vehicles bought under the scheme – change of circumstances

6.1 If your plans change while the vehicle is in the UK

If your plans change, you must contact our Personal Transport Unit straight away.

If after buying the vehicle, you find that you cannot export it by the due date you can no longer use the vehicle VAT free.

If either you or the vehicle will not be staying outside the UK for at least 6 consecutive months from the date of export, you’ll have to pay the full amount of VAT that you did not pay when you bought the vehicle. The Personal Transport Unit will tell you how to do this.

7. Re-importing a vehicle that’s been bought under the scheme

7.1 Bringing a vehicle back to the UK after exporting it

If you bring a vehicle back into the UK after exporting it outside the UK, you’ll usually have to pay taxes at importation.

7.2 VAT charge when you bring the vehicle back to the UK

If you’re eligible for relief from duty and tax, then you will not be charged any VAT.

If you are not eligible for relief from duty and tax, you’ll be charged VAT as follows:

You’ll be charged VAT on the vehicle’s value at the time you re-import it if:

  • you re-import the vehicle 6 months or more after the due date for export (see paragraph 5.2)
  • you can show that you and the vehicle have remained outside the UK for at least 6 consecutive months

In all other cases, you’ll be charged the VAT you did not pay when you bought the vehicle.

7.3 Licensing and registering the vehicle once it’s permanently back in the UK

You must license and register the vehicle once it’s permanently back in the UK. The only exception to this is if you are not going to use, or keep, the vehicle on the public roads.

When you arrive in the UK you must apply straight away to the DVLA. To re-licence or re-register the vehicle you’ll need to produce proof that either:

  • VAT has been paid
  • you are exempt from VAT

8. Basic information about selling a vehicle under the scheme

8.1 You do not have to use the scheme

The scheme is optional.

8.2 When you can take an order for a vehicle under the scheme

You can take an order under the scheme if your customer is an entitled person and intends to leave the UK either :

  • 15 months or less, if they’re an overseas visitor paragraph 2.3
  • 9 months or less, if they’re an entitled UK resident paragraph 2.3

8.3 What you have to do at the time of sale

The first sentence and two bullet points have the force of law.

You must give your customer a copy of:

  • sections 1 to 7 of this notice
  • the VAT410 application form

You should explain the conditions of the scheme to the customer and give them time to read sections 1 to 7 of this notice.

By completing the VAT410 form, the applicant declares that they:

  • have received, read and understood sections 1 to 7
  • will meet all the conditions of the scheme which are listed on the back of the VAT410 form

Warning – it’s an offence for applicants to give incorrect information on the VAT410 form. You should advise them that, if they do, they’ll be liable to prosecution.

You can download the VAT410 form.

8.4 The VAT410 form

The VAT410 form consists of 4 copies:

  • Part 1 – HMRC copy
  • Part 2 – customer copy
  • Part 3 – supplier copy
  • Part 4 – DVLA copy

Make sure that your customers have completed the application form fully and correctly before you accept it.

You should send the HMRC copy (part 1) of the form to the Personal Transport Unit at least 2 weeks before the date of delivery of the vehicle.

If the VAT410 is incomplete or inaccurate the, Personal Transport Unit will return it to you to correct which may delay the delivery of the vehicle.

If the VAT410 is completed accurately, the Personal Transport Unit will send you a VAT412 form.

If the form is completed accurately and you need to supply the vehicle urgently, the Personal Transport Unit can phone you with the approval number once they’ve received the VAT410 form. Once you have the number, you may release the vehicle.

The following sentence has force of law.

This is a pre-approval scheme. The vehicle must not be released to the customer before you receive a VAT412 from HMRC. You may have to pay VAT if you fail to do this.

The conditions to use the scheme are:

  • you must personally take delivery of the vehicle in the UK and sign a certificate of receipt for the vehicle
  • the vehicle must be used only by you, your spouse, a chauffeur on your behalf or another entitled person who is leaving the UK and has your permission to use it

  • you must export the vehicle from the UK within 6 months of the date of delivery if you are an entitled UK resident, or 12 months of the date of delivery if you’re an overseas visitor who has not been in the UK for more than either:

    • 365 days in the last 2 years
    • 1,095 days in the last 6 years
  • you must remain outside the UK with the vehicle for at least 6 consecutive months from the date of export of the vehicle
  • you must not dispose, or attempt to dispose of the vehicle in the UK by hire, pledge as security, sale, gift or any other means
  • if you change your plans and the vehicle is not to be exported by the due date for export, if you’re in the UK you must immediately contact the Personal Transport Unit

You must meet all these conditions to use the scheme. If you do not meet all the conditions, VAT will be payable on the value of the vehicle when purchased, and the vehicle may be liable to seizure.

8.5 What you must do about invoicing vehicles and supplying extras

The following sentence has the force of law.

You must supply and invoice the VAT free vehicle direct to the applicant.

Factory or dealer-fitted extras they must be included on the initial invoice for the supply of the vehicle at the time it’s purchased to be eligible for zero rating.

8.6 Who should insure the vehicle

You should advise the customer to insure the vehicle for its full VAT-inclusive value at the time of purchase for the reasons explained in paragraph 4.1.

8.7 What you should do if an order is cancelled

If, after the application has been approved, the customer cancels it before delivery, you should contact the Personal Transport Unit immediately. They’ll need the following details:

  • the customer’s name
  • the serial number of the VAT410 application form
  • in the case of a new vehicle, the make and model ordered
  • in the case of a second-hand vehicle, the registration number

8.8 If you find out that the scheme’s conditions have been breached

You must let the Personal Transport Unit know immediately if you find out that:

  • a vehicle you supplied under the scheme has been retained in the UK beyond the due date for export
  • any other condition of the scheme has been breached

9. Registering and licensing when selling a vehicle under the scheme

9.1 How to register a new vehicle

You must:

  • submit a V55 application form and write ‘Personal export (VAT-free) vehicle’ in capital letters at the top of the form
  • attach the form to the DVLA copy (part 4) of the VAT410 form
  • send both documents to the DVLA

9.2 Selling a second-hand vehicle under the scheme

These vehicles will already have been registered, so you must tell the DVLA of the change of keeper.

Only the registered keeper can apply to the DVLA for a tax refund. Refunds are automatic.

Send the following documents to the DVLA:

  • the DVLA copy (part 4) of the VAT410 form
  • the completed V5C registration certificate
  • the V10 form (application to license the vehicle)
  • insurance certificate
  • MOT certificate, if applicable
  • the VX304 form (exemption from Vehicle Excise Duty), if applicable

Some of these documents are now online, refer to DVLA guidance.

If the customer intends to export the vehicle within 14 days of buying it, you should give them the V5C registration certificate (which will be in the previous keeper’s name). You must then tell the DVLA of the export.

10. Delivering a vehicle under the scheme

10.1 Before you deliver the vehicle

New vehicles

Before you deliver the vehicle, you must complete the details required on pages 5 and 8 of the pink registration book, showing the:

  • amount of VAT which has been paid
  • delivery date
  • final date for export

Second-hand vehicles

If you’ve followed the procedures in paragraph 9.2 and paragraph 12.2, you do not need to do anything else.

10.2 Delivery receipts

You must keep a dated certificate of receipt for the vehicle with your records. It must be signed by the applicant.

10.3 The procedure for an urgent delivery

Note that you must not use this procedure if either the:

  • initial application by the customer has been rejected or returned for amendment
  • customer has made more than one application in any period of 6 months

The rest of section 10.3 has the force of law.

You may allow delivery within 2 weeks of the VAT410 form being completed, but only if an overseas visitor or an entitled UK resident intends to leave the UK within one month of their application to buy a vehicle under the scheme.

For all urgent delivery requests, you must complete a certificate for urgent delivery (see section 11). You should send a copy of the certificate by email to the PTU at least 3 working days before the date you deliver the vehicle to the applicant. The certificate must be authorised by a:

  • sole proprietor
  • partner
  • director
  • company secretary or
  • a duly authorised person at a responsible level

When you email the certificate to the PTU , you must also email a copy of the VAT410 form and, for new vehicles, the V55 form. You should then post the original papers to the PTU .

10.4 Queries

If you have any questions before or after delivery of the vehicle which our helpdesk cannot resolve, you should contact the Personal Transport Unit.

HM Revenue and Customs
Personal Transport Unit
Erskine House
Floor 3
20 — 32 Chichester Street
Belfast
BT1 4GF

Telephone: 0300 322 7071

Email: [email protected]

11. Format for certificate for urgent delivery

Certificate for urgent delivery.

Applicant’s details:

Name: ……………………………………………..……
Invoice no: ……………………

Address: ……………………………..……………………………………… ………………………………………………………………………………… ………………………………………………………………………………… …………………………………………………………………………………. ………………………………………………………………………………….
Postcode: ………………

Vehicle details:

Make: …………………………………..
Model: ………………………………….
Chassis number: ……………………
Registration number: ………………

I hereby certify that I have this day personally interviewed…………………(name of applicant) who assures me that they have not applied for or acquired a VAT free motor vehicle under the Personal Export Scheme, as described in Notice 707, within the last 6 months.

I’ve also inspected their passport number, …………….., issued by ……………(name of authority) and the following documents: (for example details of car ferry tickets, overseas residence permit, return tickets, confirmatory letters or such evidence as was seen)……………………………………………………………………………………….…………………………………………………………………………………………..

I have no reason to doubt their status as an overseas visitor/entitled UK resident (delete as appropriate) or their declared intention to leave the European Union with the vehicle on (date)…… …(this date must not be later than one month from the date of application) and to remain abroad with the vehicle for at least 6 consecutive months.

Signed: ……………………..………………………………
Position in company: ……………………………………..
Date: …………..……………………………………………

12. Records you must keep

12.1 Vehicles that you were charged VAT for

You must keep:

  • the normal VAT records as set out in VAT guide (Notice 700)
  • your part 3 copy of the VAT410 form for inspection by HMRC officers

You must also keep a separate record of each vehicle you’ve supplied under the scheme, showing:

  • the date of delivery
  • the applicant’s name and UK address
  • particulars of the vehicle supplied, including type, chassis number and registration number
  • the amount of VAT not paid on the delivery price, this must include the price of any accessories or extras and any delivery charges, less any discount allowed
  • a certificate of receipt of the vehicle, signed and dated by the applicant, this must include the chassis number and the registration number

12.2 Margin scheme vehicles

You should already have a record of these in your margin scheme stock book.

Section 12.2 has the force of law.

When you sell a margin scheme vehicle under the Personal Export Scheme, you must close its stock book entry and include a cross-reference to the serial number of the VAT410 form. Insert ‘zero-rate’ in the VAT rate column of your stock book and ‘nil’ in the VAT due column.

You must then record the sale separately and include the details listed in paragraph 12.1.

12.3 How long to keep the records

Section 12.3 has the force of law.

You must keep records of all the vehicles you’ve sold for a period of 6 years as specified in VAT guide (Notice 700).

13. Supplier’s checklist

You will need to check:

1.The customer is eligible to use the Personal Export Scheme.

2.The customer has received and read a copy of sections 1 to 7 of Notice 707.

3.The customer agrees to meet all the conditions of the scheme.

4.The customer will personally take delivery of the vehicle in the UK.

5.You’ve told the customer that they’ll be liable to prosecution if the information they’ve given on the VAT410 application form is incorrect.

6.You’ve advised the customer to insure the vehicle for the full VAT-inclusive value at the time of purchase.

7.The customer knows that the vehicle must be removed from the UK by the final date for exportation.

8.You’ve informed the customer that if their order is cancelled or they change their plans and the vehicle is to remain in the UK, they must immediately contact the Personal Transport Unit at Dover.

9.You’ve kept a separate record of the vehicle.

10.You’ve completed the VAT410 form – copies to be distributed as follows:

  • part 1 copy to HMRC
  • part 2 copy to the customer
  • part 3 copy to the supplier
  • part 4 copy to the DVLA

You must also attach the following documents:

  • for new vehicles, the V55 form authorising the issue of a pink log book
  • for second-hand vehicles, the completed V5C registration document
  • V10 form (Vehicle licence application) and VX304 if the purchaser is entitled to claim exemption from payment of Vehicle Excise Duty

11.The vehicle has been delivered directly to the person who signed form VAT410.

12.The applicant has signed a dated certificate of receipt for the vehicle, and you’ve kept a copy in your records.

14. Contact details for vehicle licensing offices

If you have a query contact the DVLA.

Your rights and obligations

Your Charter explains what you can expect from us and what we expect from you.

Putting things right

If you are unhappy with our service, contact the person or office you’ve been dealing with.

If you’re still unhappy, they’ll tell you how to complain.

How we use your information

Find out how HMRC uses the information we hold about you.

Help us improve this notice

If you have any feedback about this notice email [email protected].

You’ll need to include the full title of this notice. Do not include any personal or financial information like your VAT number.

If you need general help with this notice or have another VAT question you should phone our VAT Helpline or make a VAT enquiry online.

Updates to this page

Published 12 January 2014
Last updated 15 September 2021 + show all updates

  1. Form 410 is now available in download form.

  2. Paragraph 8.4 has been updated with the conditions of the scheme.

  3. This page has been updated because the Brexit transition period has ended.

  4. Postal address has been updated in section 8.4.

  5. The phone number at sections 6.1 and 8.4 has been updated.

  6. The telephone number for the Personal Transport Unit (PTU) has been updated.

  7. First published.

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