Introduction Background Note
6.At Budget 2011, the Government announced a joint initiative between HM Revenue & Customs (HMRC) and the Driver and Vehicle Licensing Agency (DVLA) to combat VAT fraud on road vehicles brought into the UK.
7.From 2013, a person bringing a new or used road vehicle into the UK for permanent use on UK roads will have to notify HMRC within 14 days of the arrival of the road vehicle in the UK. In the case of an acquisition of a new road vehicle from within the EU, private individuals and non-VAT registered businesses will be required to pay any VAT due at the time of notification.  VAT registered customers will continue to make payment via their VAT returns. In the case of a road vehicle imported from outside the EU, VAT will continue to be collected under existing arrangements.
8.Until HMRC is notified and any VAT due has been paid or, in the case of VAT registered businesses, is assessed as "secure", it will not be possible to licence and register a road vehicle with the DVLA. Online notification is expected to be the preferred method of communication, although a paper channel will also be available.