Vanuatu car registration cancelled: What’s next for the world on wheels?
The idea of offshore car registration for duty-free cars has always been popular, but more so in recent times. For many years, residents of European countries had the right to register their vehicle in other neighboring countries tax-free. Why would they want to do this? This is usually because the vehicle they want to import cannot meet local vehicle registration requirements. The vehicle they import is generally safe and in working condition, with only a minimal amount of engine emissions. However, emissions regulations in some countries are very strict and may require more expensive compliance testing. Also, other fees such as VAT or import duties may be required. Essentially, the out of country tax free car registration program saves time and money and allows people to drive what they want.
Legally speaking, cars can be purchased duty free, as long as steps are taken to avoid duties and taxes. However, there is a requirement that car owners must live in a country other than their country of residence at least part-time. Advantages besides low registration costs include lower annual fees, avoidance of all related costs such as luxury taxes or VAT, and a much lower cost for personalized license plates. In fact, with this type of arrangement, in some circumstances, you could literally drive anywhere in the world. (Although it is not advisable to try to skate on the Atlantic Ocean). However, with the help of a vehicle transport service, you can drive all over the United States and then fly your vehicle to drive in Far East Asia.
For a while, Vanuatu’s offshore car registration was the most popular option in Europe. However, starting in 2008, the country suspended its long-running foreign vehicle registration program. (They even canceled the show on their yacht records: where is the world going?) What happened? Once you must realize that in years past, Vanuatu was seen as a tax haven; an island nation that never turned over account information to other governments or even law enforcement agencies. They also did not charge income tax, withholding tax, capital gains tax, or other related fees. (You shouldn’t be surprised to learn that the KaZaA network providers decided to host their controversial services here.)
This convenient means of operation obviously led to some abuse of the system and soon Vanuatu was under great international pressure to comply with world standards when it came to publishing certain financial details. Eventually, pressure from Australia and other nations convinced the Vanuatu government to reconsider some of its policies and one casualty was overseas car registration.
However, there are still options open to you if you want to continue to take advantage of offshore vehicle registration. There is still Andorra, as well as the Cook Islands, which still have tax-free status. There are still options to pursue if you have the great idea to register a car tax free. For details of the Cook Islands program, you can check www.easycarregistration.com