Author Topic: VAT Stuff in Car imports  (Read 462 times)

Offline john m

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VAT Stuff in Car imports
« on: January 13, 2021, 01:44:55 pm »
 
Post-Brexit VAT changes between the Republic and Britain have added thousands of euro to the cost of imported second-hand cars from England, Scotland and Wales - but not Northern Ireland.

The imposition of VAT on second-hand cars coming from England. Scotland or Wales to the Republic will add more than €4,000 to the price of a car with a value of €20,000 in the Republic.

Latest figures for vehicles imported to the Republic show a growing market for foreign used cars , with a record 109,000 imported primarily from Britain in 2019. This compared to 70,000 in 2016.

In comparison, new cars registered in Ireland fell from 141,000 in 2016 to 113,000 in 2019.

Since the Brexit transition period ended on January 1st, the UK is now deemed a “third country” by the EU, meaning VAT becomes payable on second-hand goods from there.

However, as Northern Ireland is still treated as being within the EU Customs Territory, under the Northern Ireland Protocol, cars imported to the Republic from the North do not have to pay additionalVAT.

The Society of the Irish Motor Industry said it does not expect Northern Ireland to become a “back door” for used vehicles from Great Britain transiting through the North.

Brian Cooke, director general of the society, said the Northern Ireland market in second-hand cars by itself would not be large enough to supply the Republic. He said second-hand cars being sold into Northern Ireland from England, Scotland or Wales will also attract a VAT charge, effectively closing the “back door”. The VAT charge is payable when importing into Northern Ireland as the North is to remain within the EU customs territory.

Cars imported to the Republic from either the North or Britain will continue to be liable for Vehicle Registration Tax (VRT), the amount of which is calculated on the age and mileage of the vehicle.

     

In a statement, Revenue said : “If you import a car from Great Britain from January 1st, 2021 customs formalities apply. In addition to completing a customs declaration you will have to pay customs duty (if applicable), VRT and VAT”. Revenue confirmed neither a customs declaration nor VAT would be payable on second-hand vehicles coming from the North.

UK tax authority HMRC confirmed individuals and motor dealers in Northern Ireland would have to pay VAT on second-hand cars imported from Britain. The move will also add thousands of euro to the price of second hand cars imported into Northern Ireland from Britain.

A spokesman for HMRC told The Irish Times the UK government “is aiming to minimise disruption for Northern Ireland traders and is continuing to explore options for addressing the impacts”.

One exemption already in place allows VAT-registered dealers in Northern Ireland to claim VAT relief on purchases of vehicles from VAT-registered corporations, such as car hire companies and fleet owners.

Mr Cooke said the Society of the Irish Motor Industry believed the changes would make it more complex for dealers in the North leading to a rise in price, as the market there aligns more with the Republic. “In fact we are seeing that rise in prices in Northern Ireland already”, he said.

Phil Fitzgerald, a used car importer based in Naas, Co Kildare said the changes would mainly impact dealers in Northern Ireland who can not source “margin” sales of second-hand cars in the UK, without paying VAT.

Offline Rat Catcher

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Re: VAT Stuff in Car imports
« Reply #1 on: January 13, 2021, 01:49:10 pm »
Good for the Irish motor trade I guess.

If you still want to get back on the tools you might consider ringing, erm...

Chucky our law.

Offline john m

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Re: VAT Stuff in Car imports
« Reply #2 on: January 13, 2021, 01:56:17 pm »
The Man that hires Casual Labour says .There is a Problen that isint a problem but is a Problem if you follow me .People living in the Ulster says no will be required to pay VAT on cars they import from their Motherland as they are in and out of the EU and both British and not British .This will mean that cheap cars from Ulster says No will dry up but Borris has told the Girl in Charge of Ulster Says no and the other Irish speaking girl that wants to be in charge of Ulster says No that the UK government will introduce a tax break for Ulster Says No car owners so they dont have to pay the VAT .

Now the problem for the Irish taxman is Ulster says No is still in Europe so Irish drivers can still buy in Ulster says No and not pay the Tax on Import .Irish government are looking at a scheme where a car must of been owned by the seller registered in Ulster says No for a year to qualify for tax exemption on import to the Republic of Saints and Scolars .

Offline Rat Catcher

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Re: VAT Stuff in Car imports
« Reply #3 on: January 13, 2021, 03:22:13 pm »
I wonder how many times you'd get away with importing the same car before the VRT crowd copped it?

Offline john m

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Re: VAT Stuff in Car imports
« Reply #4 on: January 14, 2021, 02:29:15 pm »
USED-CAR prices are expected to increase due to the knock-on effect of Brexit tariffs and fewer new-car sales, according to a new DoneDeal report.

With a ‘crunch’ in supply, it says now is a good time to buy before prices climb.

The report also finds that 50pc of consumers (up from 25pc last year) intend to buy hybrid or electric as their next car.

It says cash is plentiful as buyers have funds for car deposits that would normally have been used for holidays, creche fees etc.

Other findings include how:

:: The motor industry is “transforming to be future-proof” with the adoption of online selling.

:: Commuters don’t miss the traffic but would like the “contemplation time” commuting gave them.

:: “If you are looking to buy a nearly-new car, you’ll find that the price gap between nearly-new cars and brand-new cars is closing.”

:: Brexit means used imports will fall “dramatically” and this loss of supply will keep used-car values strong in 2021.

:: Diesel is in a “slow decline” but far from dead.

Meanwhile, it hasn’t got here yet, but Skoda’s Enyaq electric SUV (pictured) has sold out, with 280 vehicles reserved online. This comes after 100 deposits were received in the first 25 minutes of order books being opened.


The new car is due here in June but the allocation of 280 has already been reached,
leaving Skoda here to say supply is expected to improve in 2022.


Offline silverbullet

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Re: VAT Stuff in Car imports
« Reply #5 on: January 14, 2021, 02:53:39 pm »
Good for the Irish motor trade I guess.

If you still want to get back on the tools you might consider ringing, erm...

Chucky our law.
Not one. car made in Ireland,  yet we have a motor trade.

Sheesh!

Offline Rat Catcher

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Re: VAT Stuff in Car imports
« Reply #6 on: January 14, 2021, 06:06:22 pm »
Does Henry not have a plant in Cork?

Online Shallowhal

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Re: VAT Stuff in Car imports
« Reply #7 on: January 14, 2021, 06:14:00 pm »
Does Henry not have a plant in Cork?

Storage only.

Offline Rat Catcher

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Re: VAT Stuff in Car imports
« Reply #8 on: January 14, 2021, 06:26:12 pm »
Better than nothing I guess.

Offline john m

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Re: VAT Stuff in Car imports
« Reply #9 on: January 15, 2021, 12:27:15 am »
THU, 14 JAN, 2021 - 20:30
PÁDRAIG HOARE
Motorists importing British cars through the North will still be liable for new charges introduced after Brexit, Revenue has said.

Before January 1, Irish motorists flocked to the British market in recent years, with savings of up to €10,000 on high-end cars possible for those who carried out some canny research.

Motorists buying a vehicle from Britain were not subject to paying Vat unless the car was less than six months old, or there was less than 6,000km on the clock. There was also no import duty payable once it was brought in, but they would be liable for vehicle registration tax (VRT).

Even when accounting for VRT, motorists still managed to save thousands than what they would have buying similar in Ireland.

It led, in recent years, to hundreds of thousands of Irish motorists nabbing themselves high-end cars such as BMW, Audi, Mercedes, and Volvo with far higher specifications such as satellite navigation and heated seats, compared to what they would get in Ireland for a much higher price.

The market peaked in 2019, when almost 109,000 cars were brought in from Britain and Northern Ireland combined, with the new car market in Ireland a casualty of that new import trend, plummeting to 113,000.


According to Revenue, those importing vehicles from Britain are required to complete a customs declaration; pay or account for customs duty of 10% if applicable; and pay Vat at 21% prior to presenting the vehicle for registration. VRT is also payable on such vehicles.

While that position applies to cars being brought in from the British mainland, questions have arisen as to whether the North is operating differently.

     

Irish Examiner readers raised questions about whether it would still be possible to save money as in the past through buying a car in the North.

Asked about the differences between importing cars from Britain and the North, Revenue seemed to rule out any way of consumers circumventing the rules that apply to Britain.

A spokesperson said the protocol on Ireland and the North ensures there will be no hard border on the island.

"This means the process for importing a vehicle, first registered in the North after January 1, remains unchanged from current rules, and can be done without any check on its customs status."

VRT is payable on such vehicles and Vat is payable on new vehicles, which are generally vehicles under six months old or with less than 6,000km only, Revenue said.

"However, it should be noted that it will not be possible to route British-registered vehicles via the North for import into the state to avoid these significant changes.

"Proof that vehicles were properly imported into the North will be required for vehicles first registered in Britain. If this proof cannot be provided, the individual or business importing the vehicle into the State must make a customs declaration, pay customs duty, and pay Vat based on the import value of the vehicle immediately prior to registration."

When importing a new vehicle from the North, motorists must pay Irish Vat at the time the vehicle is registered, even if Vat has been paid in the North. A refund of the Vat in the North can be claimed from the dealer upon a paid receipt of Vat in the Republic.

 


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