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Post By Keith1954
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18 Jan 2019
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Location: Poland
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Import taxes EU
Hi!
I'm a EU citizen currently on a trip in America on a DR650 that I bought brand new in Canada some 6 months ago.
Does anyone know what sort of taxes I'll have to pay if I was deciding to bring back the DR to Europe?
So the bike is on my name, it's a 2018 model with now 22000 km on the clock and still counting (it's going to have roughly 35000 when I'm done with the trip).
The question is: would I have to pay VAT and import taxes on the value of a new bike? That would be a lot of money for a bike with such mileage...
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19 Jan 2019
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The answer to your question depends on which country you plan to import it to, you give your location as Poland so is that where you are talking about? There is also the question of registering it which may be difficult if not impossible in some countries such as Germany and easy in others like the UK where we have single vehicle approval.
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19 Jan 2019
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19 Jan 2019
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Join Date: Mar 2014
Location: Germany
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As household goods it is duty and tax free if you have owned it for at least 12 months and used for at least 6 months.
Since you only bought the bike 6 months ago, that's not applicable to you.
You would get waivers for registration even if the DR does not meet emission and noise specs. Costs €90 in Germany.
I don't know if you have inspections in PL like they have the TÜV in Germany.
Bikes have a duty of 6% plus your regular VAT of 23% on the bike+transport.
Assuming a bike value of $6000 and transport cost of $1000 the calculation is as follows.
6000+1000=7000
7000*0,06 = 420
7000+420=7420
7420*0,23 = 1706
You pay $420 in duty plus 1706 in tax. Which translates into a total of 30.4%
On top of that the bike might not be plateable because of no Euro4 and no ABS.
I hear it is possible in Ireland, though.
http://ec.europa.eu/taxation_customs...mDate=20190119
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19 Jan 2019
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Thanks all for the replies.
I'm indeed based in Poland now but have Luxembourg citizenship. I'm not officially residing in Poland yet however. As I was going on this long trip I thought I'd go over the residency paperwork upon my return.
I purchased the bike in April 2018 (I have the invoice of course, paid in full with bank wire) and don't plan to end my trip before April - probably later.
So in theory I could manage to prove 1+ year of ownership and more than 6 months of use. If I could have VAT and import taxes waved off, then I would definitely consider bringing the bike to Europe.
However my case is not the usual one is this sense that I was never officially residing in Canada where I bought the bike. So the big question is how much taxes I'd have to pay.
I suppose I'm not the first EU citizen considering bringing his bike back to Europe.
As for the registration in EU I'm not too worried as I've come across imported DRs in Europe with legal plate number - including in Germany and in Poland.
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19 Jan 2019
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Quote:
Originally Posted by NicoGSX
However my case is not the usual one is this sense that I was never officially residing in Canada where I bought the bike.
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Hello
If I was you, I'd check that with customs of the country where you will stay in the EU.
In my case, in Switzerland 22years ago, there was the "usual household effects" for people who lived abroad and a different way for "longtime travellers" who weren't registred anywhere.
Good chance you find a similar "loophole".
It's worth the time searching the web.
sushi
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20 Jan 2019
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Ok, you're on a trip only. Household goods does not apply to you then.
The household goods rule is for people who have lived and worked outside the EU for a minimum of one year.
I had to prove that by showing my work contracts and work visas.
You can't just go travel and bring back the bacon free of charge. The state wants its money, you know.
Use the formula I have given further up, just apply the appropriate VAT for your country of choice. I think LUX has 15% tax.
Quote:
As for the registration in EU I'm not too worried as I've come across imported DRs in Europe with legal plate number - including in Germany and in Poland.
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That is a bit naive.
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20 Jan 2019
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If you wanted to import into Europe via the UK - which is still a member of the EU (.. but might not be in 68 days' time!) - then this is the definitive position:
20% VAT is usually payable to HMRC (Customs) if a vehicle is imported from outside the EU.
There are some exemptions.
You would be exempt if you qualify for transfer of 'residence relief'. You can qualify for this relief if you can prove the following:
- you are moving your normal home to the UK
- your normal home was outside the EU for a continuous period of at least 12 months
- you have owned and used the vehicle for at least 6 months outside of the EU
- you did not get the vehicle under a duty or tax-free scheme
- you are going to keep the vehicle for personal use for at least twelve months.
Furthermore, you may not pay VAT on an imported vehicle if it has been previously exported from the EU or the vehicle is imported from outside the EU and is registered to a non-EU resident.
AND the 'extras' are:
6% Import Duty on the current value of the bike; plus
First registration fee to the DVLA* .................... £55 (€62)
Cost of getting a UK reg plate made-up ........... ≈£20 (€23)
Change speedo reading from kms to miles (if applicable) ...... ≈£20 (€23)
MOT** test .................................................. .. £30 (€34)
Vehicle road tax to the DVLA ..........................£82 (€93)
*Driver and Vehicle Licensing Agency
**Ministry of Transport - vehicle safety test.
NOTE: You are obliged to notify HMRC within 14 days of bringing an overseas (outside the EU) vehicle into the country permanently. If you don't, then you can be fined £5 (€6) for every day you’re late in notifying HMRC.
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20 Jan 2019
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Alright, thanks again to all who took the time to write here.
Still one thing I'd like to clarify: what would be the price basis for the taxes? The bike was new a year ago but with 35000 km it's not new anymore - or would they still be charging taxes based on the price new?
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21 Jan 2019
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Quote:
Originally Posted by NicoGSX
Still one thing I'd like to clarify: what would be the price basis for the taxes?
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A current market valuation from a local garage, or a statement made by an independent motor company on headed notepaper, showing details of mileage, condition etc.
As your vehicle was purchased last year in 2018 and will likely have c. 35,000 km recorded on the odometer, the value will be different (lower) from the new price.
Summary: the requirement is current market value at the time of importation (not the purchase price).
Last edited by Keith1954; 21 Jan 2019 at 09:59.
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23 Jan 2019
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Quote:
Originally Posted by Keith1954
Summary: the requirement is current market value at the time of importation (not the purchase price).
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That's correct, governments have their vehicle base pricing in their computers which are based on previous transactions and taxes paid.
Keith greets from Lobagola ,
cheers
dooby
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