In case of motorcycles, as with any equipment that has an engine, taxation depends on the value of the vehicle itself and the size of the engine. When calculating the tax burden and duties, does the customs value include not only the price for which the vehicle was purchased, but also the additional costs of the importer – freight forwarder services abroad, loading and logistics. Mandatory payments include duty, VAT and excise duty.
For example, you want to import a Harley-Davidson motorcycle from Europe. Its cost is 10 thousand EUR, and its engine capacity is 1900 сm3. In this case, the duty will be 1000 EUR, excise tax – 850 EUR, VAT – 2370 EUR payments to customs. Also, in the case of a Harley-Davidson motorcycle, you need to obtain permission to import the goods from the holder of intellectual property rights in Ukraine.
Non-tariff regulation includes all permits required for the import of this product. In particular, a motorcycle must comply with the technical standards established by the Ministry of Infrastructure of Ukraine and have a certificate of conformity for a wheeled vehicle. In addition, a valuation must be carried out by an independent expert to confirm the customs value of the motorcycle. All these documents are made after the arrival of the vehicle on the territory of the country in the customs control zone.
Documents. What documents are required to register a motorcycle?
From a documentary point of view, registration of a motorcycle for an individual or a legal entity does not make a fundamental difference. However, if we talk about cost, then it will be much more profitable to make a purchase for a legal entity, since the VAT that is paid upon import falls into a tax credit for legal entities and will be written off during subsequent operations. Thus, you can save 20% on taxes. But it is important to remember that then it will be possible to initially register a vehicle only for this legal entity.
Motorcycle customs clearance documents for an individual:
- Identity card (passport of a citizen of Ukraine, identification code);
- A document confirming the purchase (invoice, sales contract, exchange or donation contract);
- Document confirming payment (payment order);
- Technical passport (title);
- Deregistration statement in the country of registration;
- Shipping document for carriage (CMR, bill of lading, air waybill)
- Agreement on the provision of customs brokerage services or power of attorney.
Motorcycle customs clearance documents for a legal entity:
- FEA contract between buyer and seller (contract);
- Proof of purchase (invoice);
- Technical passport (title);
- Extract from the registration in the country of registration;
- Shipping document for carriage (CMR, bill of lading, air waybill);
- Agreement on the provision of customs brokerage services.
Difficulties and bottlenecks
The most difficult part when registering a motorcycle is assessing the customs value. For each product, based on its code and country of origin, the customs authorities have established an unspoken value (customs base), below which it is unlikely to be able to be cleared through customs. In cases where the price of the vehicle is “below the base”, you can go in two ways:
The firstis to manually raise the cost of the item. For this, the inspector must issue an official letter. This method is the fastest and easiest, but it entails overpayment in taxes.
The secondis to confirm the customs value with official sources. And here only the invoice will not be enough. Additional documents will be required, among which may be: a price list from the manufacturer, documents confirming the transfer of a specific amount, Internet links to purchase a motorcycle at an auction, etc. Therefore, it is very important to have a reliable and competent partner in the person of a customs broker company who can defend your interests and keep the original value of the vehicle.
Another challenge that can be faced when importing motorcycles is the protection of intellectual property. If the vehicle is included in the register of intellectual property of goods, it will be necessary to obtain permission from the official representative for the import of the motorcycle into the country. Such permission requires individual agreements with the holder – “why doesn’t he mind”? However, it often takes time. Therefore, before buying a motorcycle, it is necessary to check the trademark for intellectual property protection.
Summing up,we can say that when deciding to import a motorcycle, be it a classic Harley-Davidson model or a racing Honda, the key to success will be a correctly assembled package of documents and a preliminary estimate of the customs value.