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BFG AND HMCE INFO
A General Guide to the Rules and Regulations for British Forces based in BFG and other EEC Member States.
Background
Any citizen who lives outside of the U.K. for more than six months is able to purchase goods free of U.K. taxes but has to pay any tax levied in the destination country. As a member of HM Forces living overseas you fall under the Status of Forces Act (SOFA) which means that you are able to buy an item in the U.K. tax free, take it to another country and avoid paying local taxes.
What am I entitled to?
If you have a Posting Order you are able to buy a tax free vehicle and have full use of it for up to two months before you intend to export it. If you do not export it by the given date you are liable to pay the VAT in full.
If you are already in Germany you are able to purchase and BFG register one tax free vehicle per year. This also applies to your dependants who hold a full, valid U.K. drivers license.
What restrictions are there?
Customs & Excise regulations require that your vehicle, once exported, must not be imported back to the U.K. for a minimum period of six months and one day, or the taxes saved will become payable. The time period is measured from the date of BFG registration as this is the only definite proof of export.
Should you dispose of your vehicle within one year from BFG registration, you will lose your entitlement for another BFG registration for five years from the date the vehicle was disposed of. Furthermore, that person and all entitled persons within his or her family will not be allocated BFG Fuel Coupons for any vehicle until the penalty has expired.
When your posting is about to finish you can still purchase a tax free vehicle and import it back into the U.K. before the normal six months and one day, provided it is BFG registered before you return. You must, of course, have an entitlement to BFG register a new tax free vehicle. A new ruling by HM Customs & Excise states that no restriction is imposed on the length of time that this vehicle must be owned by you and, in theory, it could be disposed of the day after your official posting date. However VAT at the standard rate may be sought by the country you have just left.
BFG Registration
New vehicles must be registered with BFG within 30 days of arrival. A BFG 20 has to be filled out to register a new vehicle with the BFG VLO and generate the BFG tax disc, number plates and BFG 73 which confirms BFG registration and duty-free fuel allowances, in Germany a further 30 days are allowed for continental lights to be fitted and checked.
The new measures in relation to early disposal of a tax-free vehicle as of the 1st December 2004.
1. The special certificate of import issued by C & I BFLO(G) (BFG Form 414) will only be issued for use from the date 12 months after the date of initial BFG registration for any new tax-free vehicle. (Note - "new tax-free vehicle" means any vehicle purchased tax free which was two years old or less at the time of purchase). BFG Form 414 is required in order to register a BFG vehicle in the UK.
2. Any person wishing to dispose of their vehicle before the 12 month point will be able to do so following notification to the German authorities (using BFG Form 38). Such notification will, however, result in a demand for tax from the German authorities on the basis that the conditions for tax-free use have been breached.
3. Any person disposing of a new tax-free vehicle before the 12 month point and all entitled persons within the family of that person will not be permitted to BFG register a new tax-free vehicle for five years from the date the vehicle was disposed of. Furthermore, that person and all entitled persons within his or her family will not be allocated BFG Fuel Coupons for any vehicle until the penalty has expired.
Permanent transfer of residence (TOR) of the head of the household on posting to the UK.
The new measures will not affect the ability of members of BFG to take their vehicles back to the UK on permanent TOR to the UK of the Head of Household and to register those vehicles with the UK DVLA.
Nevertheless, in the event that such vehicles are sold or transferred within 12 months of the date of initial BFG registration, the five year penalty will be imposed and will take effect on any subsequent posting back to Germany.
Failure to register a vehicle in BFG.
You are required to BFG register any vehicle within 30 days of its arrival in BFG. Where change of ownership between two entitled persons takes place, the new owner is required to register the vehicle in their name within 14 days of the transaction taking place.
Despite regular publicity of the requirements to BFG register vehicles, a significant number of people continue to fail to comply with these rules. It is therefore necessary to remind members of BFG that failure to register your vehicle within the required timeframe will result in disciplinary action and also administrative action, which could well involve the payment of VAT on the vehicle.
If you require any further advice you should contact your unit BFG Registration Office or the BFG Helpline on:
JHQ 4100
or Civil +49 (0)2161 4724100.
These changes are introduced to:
1. Protect your privileges.
2. Simplify procedures to remove errors.
3. Introduce an easily understood penalty system that will deter misuse.
Important disclaimer
These general details are included as part of our service to you, and are based upon our current understanding of the law and Customs/BFG regulations. For complete advice on your personal situation with regard to purchasing a tax free vehicle please contact your unit BFG Registration Officer or the BFG VLO helpline. We cannot accept liability for the accuracy or relevancy of the information provided here.
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