advice sought re: VAT and VRT on UK import

purple_lush

So, I've read a few of the threads, stickys etc about importing a car from the UK and I need some advice
I am importing in a brand new Kia Sedona CRDi SE from the UK. My dad, god bless him wants to buy it for me and the kids:). Now, I know that i have to pay VRT (went to website, etc) but do I have to pay VAT if I wait till July (ie older than 6months) to buy the Kia? Also, is VAT at pre or post VRT price? Do I pay VAT at VRO?
How do all the eastern eurpoeans drive their cars on their original Polish, Latvian etc plates?
I have an apartment in the UK, being rented out, but if I insured the Kia over there(EU licence), could I drive it over here? For how long (90 days, I think)? and how long do I have to take it back to the UK for insurance to not be deemed null and void? Would driving it to the North be sufficient for insurance purposes?
So many, many questions....my head is buzzing!
send my your wisdom

yop

If the car was purchased in January then by July it will be six months old, but I am not sure if leaving it sitting there for six months will qualify.

kluivert

Ok here you go.

If you purchase a new vehicle in the UK and it is less than three months old, you can request or ask the dealer not to include UK Vat @ 17.5% as you wish to export the car to Ireland. The Uk dealer signs a form expressing his knowledge that the car is vatable in another EU country. The UK Dealer sends this to the DVLA. And give you the V5 Document.

Now if you import the car into Ireland and dont register it till its six months old, you will only (technically) have to pay the VRT.

I know people who have done this. Driving new BMW's and AUDI's.

Ok, to answer your questions.

1. If you do what I pointed out above then you dont pay Vat.

2. The EU tax law states that vat is payable only once on commodities in the EU. Therefore you must pay Vat on import of the car. This is based on the purchase invoice of the car from the UK dealer. So convert sterling amount to euro and add on the vat.

If your ethical and pay your taxes then you will go with option 2. From what you said in your OP its seems that you are drifting towards option 1. Remember to do this you must export the car from the UK within three months of its UK registeration.

yop

That is interesting Kluivert, if you sat the car in a shed at home for 6months after you bring in a brand new motor then you avoid the VAT! That is bound to work isn't it.

kluivert

Am from Monaghan here and boys around this area buy there new Audi's in Belfast, stick it in the garage for six months and then go to register it in the VRO in Dundalk, pay no vat either side. This would be pre-registered cars. 1 owner therefore its a second hand sale - if you understand.

Some boys dont bother registering the car, Garda pull them and the boys have the VRT form in the glove box and tell the boys in blue that there on there to the bank to pick up the draft, and go to the VRT office.

See up here there is so many people driving NI reg's and living either side of the border that its hard to see an illegal car. Unlike Cork or Keery you know.

VRO ask who they bought it from, second hand sale no invoice just v5 document.

Technically this is breaking the law but I have read many posts on here stating that VRT is illegal, which it is in the sense. So in my opinion tit or tat.

yop

So technically I could get the VRT form from the VRO office, fill it out, then drive my English reg car around and if I get pulled tell them that speil about the draft? Good thinking

Are pre-reged cars hard to come by?

kluivert

Most dealers well have a selection of Pre- Reg Cars, this allows the dealer to keep up with sales targets. The car may have 1k miles on the clock, might not have your colour or specs but shop around.

Plenty of car dealers in the North.

When I start earning proper money, I am doing to buy a pre reg car from the North and give this a go.

You would have to tell the buys in Blue that you are after purchasing the car. Now if its the local boys then probably they have seen the car a couple of times so becareful. This boys are not stupid by no means.

Ill give you a example, every now and again the Garda's set up a check point on this straight bit of road right outside this house, the house in beside the road with the Audi parked outside, with NI plates and they never question the owner to change over, I know the owner as well.

yop

I have been followed twice in 6 days by the patrol car, I think it might be coincidence but they have me spotted at this stage now alright.

purple_lush

I was thinking of leaving the car in the UK till it was 6 months old, having had my dad buy it on his name, then once the 6 months are up, have car transferrd to my name (ie change of ownership ) and then bring it over her eand VRT it.
Would this work? dad would probably have to pay VAT in UK though, I guess

purple_lush

kluivert wrote:

Now if you import the car into Ireland and dont register it till its six months old, you will only (technically) have to pay the VRT.
.

was thinking of dad buying car in his name in UK, leave in his garage until July, then have change of ownership to me ,and then import it here and VRT it. I know that dad would have to pay VAT, but cheaper than VRT+VAT over here
Would this work?

kluivert

Exactly you have it spot on there.

purple_lush

thanks a million! now to send dad shopping......