Imports into the UK
From 1 January 2021, new rules applied to imports of goods from outside the UK.
If you import vehicles or parts into the UK, you will be liable to VAT and Duty on importation. You will be able to claim the VAT, but not the Duty. VAT will be charged at the usual rate of 20%, but Duty will vary depending on the nature of the product and the country of origin.
You are required to register for EORI (Economic Operators Registration and Identification) number and a CDS (Customs Declaration Service) number before importing any goods. You can do this via the HMRC website. Once registered, instead of paying VAT to have the goods released upon arrival into the UK, you will pay VAT using Postponed VAT Accounting (PVA).
For each month in which you import any goods, HMRC will send you a VAT import certificate, which shows the amount of VAT you are due to pay. You enter this as output tax on your VAT Return. And then, subject to the usual rules, you will reclaim the VAT as input tax.
Do note that you will pay VAT on the import of second hand cars and they will not be eligible for the second hand margin scheme. Imported second hand cars must be treated as qualifying cars.