importing a car

[sandra321]

Is an imported car, from a non-EC country, liable for customs duty and VAT? If so, how is this calculated? Can I reduce or avoid this?

[Bangkok]

10% customs duty is charged on the purchase price plus freight and insurance to the EU border.  VAT (17.5% in the UK) is charged on the customs value plus the customs duty.  This gives an effective rate of 29.25%.

There is no legal means to avoid the duty.  For a one off, unrelated party transaction, there is little that you can do to legally reduce the customs value.  If you pay a warranty, you may be able to argue that it is not part of the value of the car, but it is a complex area of customs valuation.

Avoid the temptation to submit a false invoice as proof.  Customs are not stupid, and if they think you are trying it on then they will not release the car until you have proved the amount you paid and / or interviewed you under caution.