New checks to tackle VAT car crime

A new online system to stop criminals evading VAT on road vehicles they bring into the UK has been launched today by HM Revenue & Customs (HMRC).

The DVLA will be able to check HMRC’s new online system to ensure the correct VAT has been paid on vehicles brought into the UK before they are registered for use on UK roads.

VAT fraud from vehicles being brought into the UK costs the Exchequer around £110 million a year. The new system will not only tackle this fraud, but also simplify the rules for legitimate users, making it easier to notify HMRC and register vehicles brought into the UK from abroad.

Sally Beggs, Deputy Director for VAT fraud at HMRC, said:

“Criminal gangs abused the old system in the past by bringing vehicles into the UK and registering them with the DVLA without accounting for VAT. That stops today.

“The new online collaborative system means people will get the green light from the DVLA only where their vehicle has been notified to HMRC for VAT purposes. Any attempt to cheat the system will stall.”

The online Notification of Vehicle Arrivals (NOVA) system replaces the manual system, where people dealt with HMRC and the DVLA separately.

More information on the NOVA system is available here – http://www.hmrc.gov.uk/nova/

Notes for editors

1. Budget 2011 announced a joint HMRC/DVLA initiative to replace existing manual procedures with an online notification requirement for road vehicles permanently entering the UK.

2. This follows a consultation to replace existing manual procedures with an online notification requirement for road vehicles permanently entering the UK.  

3. NOVA will allow instant verification of the VAT status of vehicles, providing the DVLA with timely information on a decision to register or not. 

4. Follow HMRC on Twitter @HMRCgovuk.

5. HMRC’s flickr channel www.flickr.com/hmrcgovuk