The Personal Export Scheme (VAT Notice 707): what you need to know

The Personal Export Scheme lets an eligible person buy a vehicle in the UK free of VAT if they export it from the UK and stay outside the country with it for at least 6 months. The rules are set out in VAT Notice 707 (gov.uk — Personal Export Scheme (VAT Notice 707)).

Who can use the scheme?

• Overseas visitors — people who have not been in the UK for more than 365 days in the last 2 years or more than 1,095 days in the last 6 years before applying. They must intend to leave the UK with the vehicle within 15 months of applying and stay outside the UK for at least 6 months.
• UK residents — people who intend to leave the UK within 9 months of applying and stay outside the UK for at least 6 months.

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Which vehicles can be bought under the scheme?

The scheme covers new or used cars, motorcycles and motor caravans (motorhomes). It cannot be used to buy pedal cycles or trailer caravans.

Conditions of the scheme

• The vehicle must be delivered to the applicant in person, who signs a certificate of receipt.
• The vehicle must not be released until the supplier has received VAT412 approval from HMRC.
• Overseas visitors must export the vehicle within 12 months of delivery, and entitled UK residents within 6 months of delivery.
• After export, the customer must stay outside the UK with the vehicle for at least 6 consecutive months.
• The vehicle must not be hired, pledged, sold, gifted or otherwise disposed of in the UK.

If the conditions are not met, the VAT not paid at purchase becomes payable and HMRC can take the vehicle away. If your plans change, contact HMRC's Personal Transport Unit (PTU) immediately.

Supplier's obligations

Before the sale the supplier gives the customer copies of sections 1 to 7 of Notice 707 and the VAT410 form, and explains the conditions. The HMRC copy of VAT410 is sent to the PTU at least 2 weeks before delivery. The vehicle is supplied and invoiced directly to the applicant; factory or dealer-fitted extras must be on the initial invoice. The supplier keeps the dated certificate of receipt signed by the applicant and a separate record of each vehicle (delivery date, applicant details, vehicle details, VAT not paid), and keeps these records for 6 years. Any breach must be reported to the PTU immediately.

What happens after export to Poland

VAT-free purchase in the UK does not remove formalities in the destination country. Once the vehicle enters Poland, separate rules on duty, excise and VAT apply — see our articles on customs clearance of a car from the UK to Poland, customs duty on cars from the UK, importing a campervan from the UK to Poland and importing a motorcycle from the UK to Poland. When buying a used vehicle, consider an HPI check. Contact us if you need help with clearance.

Frequently asked questions