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.