HMRC have launched a consultation on the implementation of the new online system to prevent the evasion of VAT on road vehicles brought into the UK.
The new regime replaces existing manual procedures with a mandatory online notification requirement for road vehicles entering the UK for permanent use on UK roads
This will enable real-time verification of the VAT status of notified vehicles, with collection of the VAT up-front in some cases.
The Driver and Vehicle Licensing Agency (DVLA) will be provided with timely information, enabling it to refuse vehicle registration if the VAT is not assessed as secure by HMRC, thereby protecting the tax.
Responses and enquiries concerning the consultation, Tackling VAT Evasion on Road Vehicles Brought into the UK, should be emailed no later than 31 August 2011.