importing new car from uk can i ??

foureyes

can i buy and import a brand new car from uk with the usual rules regarding second hand cars , vrt etc or will i get hammered in taxes here?
i can get a very good discount on a new car

Alanstrainor

MOTORS FORUM!!!!! and read the sticky

Beruthiel

Moved to the Motors forum.
B

jayok

You can import if you like, but:

1. You'll need to pay VRT
2. You'll need to pay VAT @ 21% on it (even if paid the 17.5% in UK)

Re point 2 this applies if the car is less than 6 months old or has less than 6,000 miles on it. So if it's brand new 2.0 litre car, that over here costs say €30,000 you will have the following taxes:

VRT @ €9000 (30% of OMSP)
VAT @ €3645 (21% of pre-OMSP price)

Total taxes = €12,645.

The VAT application really piles on the charges and generally will dissuade you from importing a brand new car privately (protectionism for the Dealer network anyone?)

Your bargain probably isn't such a bargain now, is it?

Galway_guy_33

Heres what im doing:

New car in NI agreed a price of £13,500

Dealer in NI is willing to sell ex vat but I have to show him proof i've paid the VAT @ 21% here before he can release the car.

Taking off 17.5% UK vat (i.e. £2362.50) the price i pay him now is £11,137.50



Sterling to Euro
£11,137.50 - €13,869.11



Next I pay 21% VAT in the republic on €13,869.11 which comes to €2,912


Car now stands at €16,781.11


Now the VRT:

From the Revenue website:

OMSP is €25,468

So Pre July VRT (i.e. 30% OMSP) = €7,640

Post July 1st VRT
Car falls into Band C for C02 emissions so its 20% of OMSP = €5093.60


Final prices:
Buying this new car from NI before July = €24,421.11
And buying in after July = €21,874.71


So I rang around all the main dealers in the south for a price on the very same car and the best price was €28,500 and at that it was a demo with 3000 KM's on the clock. Same car with 0 miles best price was €29,500

So as you can see thats 6625.29 to 7625.29 saving for the very same car. When i asked the dealer if the price would come down after the 1st of july he told me no they wld come with a few extras but remain at the same price, but i should put my order in soon as he couldnt guarantee me he would have it in stock for July.... yeah right i told him i think i'll make the 2hr trip up North and a trip to VRO office save me 6 to 7k

Cyrus

sounds like a plan so!

Cyrus

jayok wrote: »

You can import if you like, but:

1. You'll need to pay VRT
2. You'll need to pay VAT @ 21% on it (even if paid the 17.5% in UK)

Re point 2 this applies if the car is less than 6 months old or has less than 6,000 miles on it. So if it's brand new 2.0 litre car, that over here costs say €30,000 you will have the following taxes:

VRT @ €9000 (30% of OMSP)
VAT @ €3645 (21% of pre-OMSP price)

Total taxes = €12,645.

The VAT application really piles on the charges and generally will dissuade you from importing a brand new car privately (protectionism for the Dealer network anyone?)

Your bargain probably isn't such a bargain now, is it?

you are correct Jayok, but you dont mention that you can get the 17.5% uk vat back

Stealdo

Galway_guy_33 wrote: »

New car in NI agreed a price of £13,500
...
Sterling to Euro
£11,137.50 - €13,869.11
...
Same car with 0 miles best price was €29,500

Out of curiosity Galway guy, what car costs 30k new here and only £13.5k in the north?

Seems like a huge diff compared to what I've seen when looking into the same idea. I could only come up with marginal savings of considerably less than 10% after all the calculations.

Holsten

Yeah I'd love to know what car it is too.

jayok

Cyrus wrote: »

you are correct Jayok, but you dont mention that you can get the 17.5% uk vat back

Can you? I thought you needed to be registered for VAT before anyone can legally sell to you ex VAT? In the case of the dealer, they are responsible to ensure that the product they sell is charged VAT. If they sell to a VAT exempt or registered customer outside their country, the will need to declare this on their VAT return trading details along with who it was sold to (i.e. name and VAT #).

Only way I could see this working would be if the dealer has a ROI address as well? Still strict controls though.

andyeire

Galway_guy_33 wrote: »

Heres what im doing:



Next I pay 21% VAT in the republic on €13,869.11 which comes to €2,912


Car now stands at €16,781.11

I am open for correction but the 21% VAT is on total price ie they charge VAT on the VRT inclusive price.

Also getting the UK VAT back is not possible for the average buyer .

The whole point of the rules on importing a new car is to make it impossible to do.

Cyrus

No they charge vat on the vrt instead of the other way around so its worse i'm sure you can get the vat back, you cannot be double charged vat in the e u

Galway_guy_33

I don’t know why people comment on things like this when they haven’t checked into it… it adds more confusion for others.

I ran through the above example with three different VRO offices and they all said it was correct…

The 21% VAT is on the purchase price of the car. I too thought I would have to pay UK VAT and Irish VAT so I went back to the dealer and told him it wasn’t worth my while buying in from the North if this was true. Then he told me they have no problem selling EX UK vat they do it all the time, I just need to show him proof I’ve paid the VAT down here 1st.

dfcelt

Stealdo wrote: »

Out of curiosity Galway guy, what car costs 30k new here and only £13.5k in the north?

Seems like a huge diff compared to what I've seen when looking into the same idea. I could only come up with marginal savings of considerably less than 10% after all the calculations.

+1, seems too good to be true tbh, no searches I did have seen a saving like that. Open to correction Galway guy

jayok

Galway_guy_33 wrote: »

I don’t know why people comment on things like this when they haven’t checked into it… it adds more confusion for others.

I ran through the above example with three different VRO offices and they all said it was correct…

The 21% VAT is on the purchase price of the car. I too thought I would have to pay UK VAT and Irish VAT so I went back to the dealer and told him it wasn’t worth my while buying in from the North if this was true. Then he told me they have no problem selling EX UK vat they do it all the time, I just need to show him proof I’ve paid the VAT down here 1st.

Ok, then how does he sell it to you if you have to pay the VAT on it first? You can only pay the VAT when he's actually sold it to you. He would need to sell it to you first with VAT, before you can reg it here. Chicken / Egg thingy.

Re the confusion, there is none, the process you describe is well documented (from a taxation POV) on the www.revenue.ie website.

andyeire

http://www.revenue.ie/services/foi/s16_2001/vrt_ins.pdf


around page 39 it deals with VAT

This is from HM Customs and says you are correct

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_InfoGuides&id=HMCE_CL_000165&propertyType=document#P169_15946

Stevie Dakota

Out of interest I got a sales fax from a dealer up North trying to drum up business, and it clearly itemises that THEY DO NOT CHARGE THE UK VAT to Irish buyers.

jayok

andyeire wrote: »

This is from HM Customs and says you are correct

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_InfoGuides&id=HMCE_CL_000165&propertyType=document#P169_15946

Cool :cool: Learn something new everyday!

nogoodnamesleft

jayok wrote: »

You can import if you like, but:

1. You'll need to pay VRT
2. You'll need to pay VAT @ 21% on it (even if paid the 17.5% in UK)

Re point 2 this applies if the car is less than 6 months old or has less than 6,000 miles on it. So if it's brand new 2.0 litre car, that over here costs say €30,000 you will have the following taxes:

VRT @ €9000 (30% of OMSP)
VAT @ €3645 (21% of pre-OMSP price)

Total taxes = €12,645.

The VAT application really piles on the charges and generally will dissuade you from importing a brand new car privately (protectionism for the Dealer network anyone?)

Your bargain probably isn't such a bargain now, is it?

A new car is defined as being less that 6months old or less than 6,000 km's not miles. You should be able to buy the car in the UK less VAT provided you ate provided the pay the VAT on the car in Ireland. I came across this doc on the web which you might find useful as outlined by the EU commission.:D