Legwork? Not really. They don’t need to prove that you evaded tax. They just write to you saying they believe your last tax return is incomplete and would you like to correct it. Or they just open an investigation. It is up to you to clear yourself. Switzerland is probably different but that is how it generally works. Otherwise somebody could run a business entirely in the cash economy, have a Ferrari parked outside, and the tax collector could do nothing.
Ibra wrote:
surely signed a paper that you are not selling it soon (X months or years) before getting VAT & duty exemption on your personal belongings after changing residence? what was written there?
I believe it was a year or maybe 2. I do remember reing reminded I justy cant turn around and sell it. But its been 7 years now so as long as I can show the exemption certificate I wont worry.
So to be clear my exemption carries over to the buyer if I sell it?
C210_Flyer wrote:
So to be clear my exemption carries over to the buyer if I sell it?
I would not say that. Basically, after the N months the article in question becomes “free and clear” and you treat it as such. So the exemption does not “carry over”, it is “vested” and the article is yours to do with as you please. Keeping the paperwork probably makes sense, but you should be able to somehow get a certificate of free circulation or equivalent.
C210_Flyer wrote:
So to be clear my exemption carries over to the buyer if I sell it?
In few words, you do not have to charge VAT on the sale of it. Nor does any future private seller have to charge VAT on it (unless it’s exported and then reimported).
Thanks for the info.
Digging out regularly this thread. I have a question: How can a plane being used privately in an EASA registry (namely German one) can be sold with the unpaid VAT status? I’m interested into a plane that is german and looks like I’ll have to add VAT to the price.
greg_mp wrote:
How can a plane being used privately in an EASA registry (namely German one) can be sold with the unpaid VAT status?
A sale by a private individual doesn’t change the VAT status. If the VAT has been paid before (e.g. because that individual imported the plane and paid the VAT or the individual bought it from a commercial seller and paid the VAT), you just make sure that you receive the proof of that payment together with the documentation and you are fine.
If the plane for whatever reason has an “VAT unpaid” status, it doesn’t change either when sold by the private individual. The new owner might become responsible for paying it.
As discussed before: There are some individual cases that need very close examination (e.g. airplanes owned by US military personnel that have been in Germany for longer period of time), but to be on the safe side, you might want to consult a good tax advisor in such a case.
I have a question: How can a plane being used privately in an EASA registry (namely German one) can be sold with the unpaid VAT status?
For individuals, there are Duty & VAT concessions when you buy goods outside CU to use them then bring them to CU to use them after change of residence, say you are German who lived in US for 10 years then “bring back” your car or aircraft with you to Berlin, this happens when your normal residence from outside the European Union (EU) to CU, under some conditions, you may be able to claim relief from Customs Duty and Value-Added Tax (VAT). This relief applies to imports of the following: personal property and household effects, including those of members of your household, bicycles and motor cycles, private cars, trailers, caravans, pleasure craft and private aeroplanes…
I doubt these rights are transferable by sale on the first 12months but I understand you can transfert them by selling later on, also there are some edge cases of military personnel or diplomates to watch for…
https://www.douane.gouv.fr/fiche/transferring-your-primary-residence-france
How can a plane being used privately in an EASA registry (namely German one) can be sold with the unpaid VAT status?
The registry is usually irrelevant to tax aspects. So a mention of “unpaid VAT status” is of no relevance to a buyer outside the EU, because that refers to the EU VAT system which exists only inside the EU (subject to treaties).
The UK is outside the EU VAT system; the fact that the UK also has “VAT” is of no consequence. You may find Mongolia has VAT also…
I’m interested into a plane that is german and looks like I’ll have to add VAT to the price.
Unless you can find some special avenue, you will.
But only at the UK end. A German seller should not charge you his VAT though. That would be totally wrong. You will pay import VAT when it arrives in the UK. Unless you just fly it to the UK and not tell anybody; thousands did that over the years, from the US, and there was a VAT amnesty in the 1980s.
The “VAT paid” status in Germany or the EU is irrelevant to a UK buyer, just as it would be to a US buyer.
Thanks for your answers all, especially MF answer.
I think you are referring to a case where an American-resident bring his N-reg plane in Germany (and has to pay Vat).
My case is: the plane is German registered, owning by a german resident, how can it be D-reg without a Vat paid status? Unless it has been actually really owned by a company that is producing Vat.
