VRT and VAT Question

kluivert

The company I work for are buying a New Car for a Rep in Northern Ireland.

I rang the dealer this morning to process with the order and confirm the price.

The Dealer stated that they would have to Register the car in the North and Tax it for 6 months before delivering to us here in the South.

First Question:

I thought the dealer applies for a Temporary Vehicle Reg Cert from the DVLA on new cars being exported, and therefore no need to road tax it, the reg number would have the letter X at the end to show that its for export.

Second Question:

Vat is payable on the car as it is brand new. I will have a sterling invoice from the dealer for the car. How do VRO calculate the Vat because I have been trying to ring Santry with no success.

Anyone have any experience.

Thanks

pyramuid man

I can only presume that they would calculate vat on the OMSP here and not in the uk. Dont know though but I cant see them doing it any different.

kluivert

It states on the Revenue.ie to take the Purchase Invoice for calculating the Vat element.

But I would like to know the method for which they do that.

I assume its the net sterling price on the Invoice * exchange rate * 21%.

zzzzzzzz

kluivert wrote: »

It states on the Revenue.ie to take the Purchase Invoice for calculating the Vat element.

But I would like to know the method for which they do that.

I assume its the net sterling price on the Invoice * exchange rate * 21%.

That's a strange one alright... Do they take the exchange rate that you paid? I.e. looking at your sterling draft or whatever? Or the current rate (which doesn't seem very fair).

Surely there's some EU law governing this...

Padraig Mor

I believe they take the invoice price converted to sterling at today's rate UNLESS you request them - in writing AFAIK - to base on the euro price you paid (i.e. you will need currency conversion receipts etc).

robbie99

kluivert wrote: »

The Dealer stated that they would have to Register the car in the North and Tax it for 6 months before delivering to us here in the South.

Probably because the UK distributors have told their dealers that they are not allowed to sell new into ROI. The Irish distributors would kick up a fuss with the manufacturors about their UK colleauges straying into their turf.

kluivert wrote: »

I thought the dealer applies for a Temporary Vehicle Reg Cert from the DVLA on new cars being exported, and therefore no need to road tax it, the reg number would have the letter X at the end to show that its for export.

Yep, that sounds right.
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000165#P263_28049

kluivert wrote: »

Second Question:

Vat is payable on the car as it is brand new. I will have a sterling invoice from the dealer for the car. How do VRO calculate the Vat because I have been trying to ring Santry with no success.

Got the following from an email exchange with someone in VRO office....

" Usually VAT is based on the Original Net Sterling Invoice Value converted to Euro at the prevailing Revenue Excise Exchange Rate set each Month - this Month's Sterling Rate is .8034." - That was May.

This link has a lot of good info...
http://www.hmrc.gov.uk/vat/consumers-vehicle.htm