Paying Vat on car purchased in the UK

andrewsunbeam

HELP

Can I redeem the Vat on a second hand car if purchased from a dealer in the UK for Export to Ireland. Noboddy appears to be able to answer this question.... People usually ignore it and start talking about VRT.:(

567

cbyrne

Have you paid VAT on the car in the UK? if its less than six months old or less than 6,000 kms, you have to pay VAT in Ireland. In this scenario you should be able to reclaim the VAT paid in the UK, its a bit of a minefield though and lot of hassle, if you can get the UK garage to sell you the car at zero rated VAT its a lot less hassle for you, but most insist you pay the VAT and then they re-imburse you when they get a credit on their VAT (bascially proving you paid the VAT in Ireland)

Tails142

no because its english vat you're paying the UK - so unless you trade in england you cant redeem the vat!?!

cbyrne

Well no accountant myself, just been down this road before, but its a european law about the definition of a new car (6 months / 6,000 km) and the vat shoiuld be paid in one country only. As I said its a fraught experience and lots of ifs and buts, but you should only have to pay VAT in one place. Generally if buying a new car, the UK garage will hold back the VAT (you pay them) till you sign some export documents and then they will re-imburse you. Buying already registered cars under 6 months/6000 miles could be a different story though

JHMEG

My understanding is this double VAT thing was SIMI's idea and is to prevent people like you from importing new or nearly new cars for less money than SIMI members will sell them to you for.

It's also my understanding that unless you are registered for VAT you can't claim it back.

cbyrne

http://ec.europa.eu/ireland/general_information/key_issues/tax/index_en.htm

This states :
The seller must prepare an invoice exclusive of taxes and you must pay the VAT in your home country. On the other hand, ‘used’ cars (i.e. vehicles over six months old or with over 6 000 km on the clock) will be taxed differently, depending on whether the transaction is between private individuals or involves an intermediary. In the first case, no VAT is payable. In the second case the seller will invoice you with the VAT.

:rolleyes: Again I'm not a tax accountant so you should consult one beforehand.

cormac_byrne

If you're not VAT registered, then you can't reclaim VAT

If you are VAT registered and supply your Irish VAT number to the UK company, they can invoice you without adding the UK VAT.
(it's extra paperwork and less cashflow for them so they may not want to do it)

You may then be liable to pay Irish VAT on import, which you can reclaim as normal. (Provided you're VAT registered and the item is for resale or business purposes etc...)

Really though you need to ask the Revenue Commissioners.

mick.fr

If you are an individual and buy a new car abroad, bring it back, you have to pay the Irish VAT and VRT.
Even if you paid the VAT already in UK.

What a misery isn't?

galwaytt

and then you get the UK VAT back from HM Treasury.

You don't pay two VAT's - new, or used.

Caveat: we are presuming the UK car has reclaimable VAT in the first place...............

OP - if you have a VAT no, the garage should be able to invoice without the VAT.

If you don't have a VAT no, you will have to pay it, then pay Irish VAT, but then you reclaim the UK VAT back.

It's quite straightforward, really........

andrewsunbeam

how is the vat estimated, is it based on the market price like the VRT. Im doing the maths here and by the time i ad Vat and VRT the price is much more than here. how the hell is buying a car in the uk supposed to be cheaper

cbyrne

The Irish vat is calculated as 21% of the UK pre-Vat price (i.e. the price you pay - 17.5%).

So you pay
your VRT as normal
+ VAT at 21% of the Uk sales price ex UK Vat.

The you claim the UK vat back.

Paddy199

Hi All,

The purchase of new means of transport in other EU Member States by private individuals and accountable persons is subject to VAT in the country of arrival. The key word is NEW. New is less than 6 months old and less than 6km. If its neither, VAT is not chargeable in country of arrival.

The Procedure is:

1. Buy car in UK.
2. Complete VAT 411 form with garage and send off to UK inland revenue (address will be on form).
3. Garage will zero rate the VAT invoice. You must export car within 2 months or zero rate does not apply.
4. Get full car registrar (not car registrar receipt as is usually issued by UK garages)
5. Get car log book from garage
6. Present car at local VRT office. You have one working day to clear VRT.
7. Pay VRT. You can check in advance with your local VRT office what VRT is payable by supplying the chassis number. VRT check with Rosslare for 'extras' on which VRT is seperately applied . Rosslare have access to all car records. It can take upto 10 working days for this, so have it done in advance.
8. VRT office will also apply VAT if new i.e. < 6k kilometres AND < 6 mths old. If over both, no Irish VAT!!!!!

<snip>

bazz26

Mmm, 3 posts, digging up a thread from a year and half ago & pimping a specific business.

Something not right here, me thinks.

Cars&cars

as far as I know you still have to pay VAT on the second hand car in Ireland you may get 15% vat off in the UK, ut you have to pass this on to Revenue in Ireland once the car is brought to Ireland.

new cars, you get no vat in the UK but then pay the Vat in Ireland at the full 21.5 %

Thats my understanding.

Gary ITR

Please do not dig up old threads to advertise