Importing from the UK - definitive guide (Q and A)

Wildly Boaring

Vicxas wrote: »

So is the import of 21% included in the VRT calculation or separate to it?

Sorry for all the stupid questions, im very new to this.

Oh lob it on top of pre VRT cost
This is a crucification.

So take UK price.
Covert to euro
Add VAT
Add VRT (at new mad rates)
Add NOx



I brought in a CRV for the wife on July
Round figures
14000 + 4200 + 600 = 19000ish
Cost + VRT + NOx

Now
14000 +3000 + 6000 + 600 = 24000 ish

With the 3k being VAT
(Although mine was actually NI but have to assume NI cars gonna be in very short supply)

Took a complete stab at new VRT, could be much worse
How'd ya like them apples..... Ugh

Vicxas

Jesus christ:

Your VRT Calculation
Date03/01/2021
Time12:02
Rate of VRT
26%
Vehicle Registration Tax
(payable on enquiry)
€9,247
Vehicle Details
Statistical Code
41389186
Model
V90
Make
VOLVO
Version
2.0D5 R-DESIGN PRO PP AWD 5D A
Breakdown of VRT Calculation
Open Market Selling Price (OMSP) determined by Revenue
€55263
Monthly Adjustment
+105%
Depreciation Code Allocated by Revenue
G1
Odometer Reading
8910 Miles
Date of First Registration
August 2019
Mileage/Kilometre Reduction
€0
Rate of Depreciation for this Vehicle
40%
Current OMSP determined by Revenue
€34815
Revenue CO2 Estimate
CO2 Emissions
129
Rate of VRT
26%
CO2 VRT Charges
(payable on enquiry)
€9,052
Revenue NOx Estimate
NOx Emissions
0.039
NOx Units
g/km or g/kWh
NOx VRT Charge
(payable on enquiry)
€195
Registration Tax Total
CO2 VRT Charges
€9,052
NOx VRT Charge
€195

Vehicle Registration Tax
(payable on enquiry)
€9,247

So add another 8k on top of that for VAT, the car is going to cost near 50 grand to bring in.

Yeah, **** that.

useless

Might be a bit of an issue with supply of GB cars in NI shortly too. Article in today’s Sunday Times says that NI has opted out of some UK ‘margin’ scheme which means that now NI dealers have to pay UK VAT on the full selling price of the used car in the UK instead of on the difference between the purchase and sale price. This will negatively impact cash flow if nothing else.

User1998

I’m seeing incorrect calculations already so just to confirm its

(Purchase Price in € + Shipping) *21%

+ VRT

Eg. (€10,000 + €500) *21% = €2,205 of VAT

Then you add VRT

Thomasirl123

useless wrote: »

Might be a bit of an issue with supply of GB cars in NI shortly too. Article in today’s Sunday Times says that NI has opted out of some UK ‘margin’ scheme which means that now NI dealers have to pay UK VAT on the full selling price of the used car in the UK instead of on the difference between the purchase and sale price. This will negatively impact cash flow if nothing else.

Would you have a link to that tines article?
It's ruining my 2021 car plans!

useless

Thomasirl123 wrote: »

Would you have a link to that tines article?
It's ruining my 2021 car plans!

https://www.thetimes.co.uk/article/why-northern-irish-eyes-shine-with-hope-and-fear-over-new-brexit-rules-g2hlq26tt

It’s behind a paywall but you can register for a free trial.

Wildly Boaring

User1998 wrote: »

I’m seeing incorrect calculations already so just to confirm its

(Purchase Price in € + Shipping) *21%

+ VRT

Eg. (€10,000 + €500) *21% = €2,205 of VAT

Then you add VRT

Cheers. Amended my post

deezell

User1998 wrote: »

I’m seeing incorrect calculations already so just to confirm its

(Purchase Price in € + Shipping) *21%

+ VRT

Eg. (€10,000 + €500) *21% = €2,205 of VAT

Then you add VRT

Agreed, its 21% of the invoice price. I'm assuming you can't get a 'virtual' vat invoice, which would show the residual VAT element of the UK price, e.g a £12k car would show as £10k plus £2k UK VAT, even though this is not refundable ( unless vat qualifying). It would mean at least revenue here should charge VAT only on the non vat element of the UK price, the £10k in the example, but thats just wishful thinking. My only hope is that all UK cars up to 2020 were originally VAT paid in the EU, so there is a legal case against double VAT taxation on pre Jan 2019 cars.

Summer2020

You’ll see a massive drop in the stock in dealer showrooms, a huge majority of stock is/was uk imports.

Dr Dave

Not trying to rub it in or anything, but I'm so glad I brought my car in just before Christmas! :):):)

Buddy Bubs

In a nutshell, are we looking at increased vrt on most imports (apart from some phevs and evs) and 21, soon to be 23% Vat on top rendering uk imports pretty redundant as a cost saving exercise?
Will hit dealers hard here but also should solidify used car residuals here.

fm

Can't vat registered dealers now just claim back the vat added when imported so no difference in cost to buy? and then charge vat on the profit/margin like they have been doing all along?otherwise vat is being charged twice?

User1998

You can’t claim vat back on cars.

Edit: I’ve definitely read that you can’t claim VAT back on cars, but now I see this from Revenue:

“Recovery of VAT on motor vehicles by certain traders
In addition to the above rules, certain traders are entitled to recover VAT on passenger motor vehicles in full, such as:
Motor dealers who purchased them as stock-in-trade.
Driving schools that purchased them for teaching purposes.
Car-hire companies that purchased them for hiring out.
Financial services companies selling vehicles by hire-purchase arrangements

Maybe someone could clarify?

Isambard

User1998 wrote: »

You can’t claim vat back on cars.

Edit: I’ve definitely read that you can’t claim VAT back on cars, but now I see this from Revenue:

“Recovery of VAT on motor vehicles by certain traders
In addition to the above rules, certain traders are entitled to recover VAT on passenger motor vehicles in full, such as:
Motor dealers who purchased them as stock-in-trade.
Driving schools that purchased them for teaching purposes.
Car-hire companies that purchased them for hiring out.
Financial services companies selling vehicles by hire-purchase arrangements

Maybe someone could clarify?

that would be Irish VAT not UK I'm guessing.

Vicxas

So essentially we've been resigned to buying paddy spec cars going forward or pay through the teeth?

Summer2020

Vicxas wrote: »

So essentially we've been resigned to buying paddy spec cars going forward or pay through the teeth?

Looking that way unfortunately.

fm

User1998 wrote: »

You can’t claim vat back on cars.

Edit: I’ve definitely read that you can’t claim VAT back on cars, but now I see this from Revenue:

“Recovery of VAT on motor vehicles by certain traders
In addition to the above rules, certain traders are entitled to recover VAT on passenger motor vehicles in full, such as:
Motor dealers who purchased them as stock-in-trade.
Driving schools that purchased them for teaching purposes.
Car-hire companies that purchased them for hiring out.
Financial services companies selling vehicles by hire-purchase arrangements

Maybe someone could clarify?

Page 11 point 6.6 of this revenue document says they can

deezell

fm wrote: »

Page 11 point 6.6 of this revenue document says they can

Yes, but they must then charge the full rate on sale, not on the margin. Bring in car for 20k. Pay 4.2k at point of entry. Claim this back while unsold. Later sell the car, sale price will include vat and vrt, to be remitted by the dealer to revenue

Wildly Boaring

I see "vat qualifying" cars as the big one here.

These qualify for vat reclaim on export from UK
(Sub UK for EU in link, it's obviously pre brexit)

https://www.beckevans.co.uk/what-is-a-vat-qualifying-car.php

As before, these are usually sold through auction or within the trade.
But there's lots of them and there's a market for them here now........ someone will fill the space.

Charles Babbage

This could distort the NI car market. Used NI cars have a market across the island, so you might find many moving south and NI people driving British imports rather than used NI cars. This probably happens to some extent already.

Thomasirl123

Charles Babbage wrote: »

This could distort the NI car market. Used NI cars have a market across the island, so you might find many moving south and NI people driving British imports rather than used NI cars. This probably happens to some extent already.

Won't NI people have to pay vat on British imports? So the market now on the island of Ireland is new or used domestic?
An absolute disaster for anyone into cars!

deezell

Yes, just that it excludes private buyers, unless a uk dealer is selling one. My last purchase was VAT qualifying, from an MB main dealer, ex lease or pcp, it came with a VAT invoice, so there's hope, but not for the juicy high spec private pampered car that many seek.

User1998

There are certain dealers here in Ireland that it shouldn’t effect too badly. Those dealing in UK cars less than 3 years old will still be able to keep purchasing without too much hassle as most of these cars are VAT qualifying. But there are a lot of dealers here who import truck loads of 10 year old cars from the UK every week. It looks like they’ll have to change their structure completely or else significantly increase their prices

Ourselves and NI will be competing for those VAT qualifying cars now.

47akak

Deleted User wrote: »

Ourselves and NI will be competing for those VAT qualifying cars now.

What % of used cars in UK are VAT qualifying? Say under 3 years old.

Nabber

Time to switch from right hand drive to left hand :pac::pac:

It would open up our potential markets significantly.

Isambard

Thomasirl123 wrote: »

Won't NI people have to pay vat on British imports? So the market now on the island of Ireland is new or used domestic?
An absolute disaster for anyone into cars!

no, UK VAT already paid on imports to NI from GB

L-M

User1998 wrote: »

There are certain dealers here in Ireland that it shouldn’t effect too badly. Those dealing in UK cars less than 3 years old will still be able to keep purchasing without too much hassle as most of these cars are VAT qualifying. But there are a lot of dealers here who import truck loads of 10 year old cars from the UK every week. It looks like they’ll have to change their structure completely or else significantly increase their prices

To be fair with the advent of the NOX charge most of those dealers have been on Jap imports for the last year or so.

curcio1000

this is my first time posting to boards.ie so please bare with me i know there was a recent hike in vrt in the new year. but why has it risen so much for example bmw 330i 2020 was 6500 now 9800 volvo s60 was 7400 now 10500 bmw m340i was 15800 now 21000 am i doing somthing wrong with my vrt calculations.

Wildly Boaring

VRT now based on a calculation to equivalent WLTP.
Was based on CO2

It's gone up on ICE since Jan 1. And only going 1 way