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

cavan4sam

So no savings by going north any more?

Looking at a 15 octavia around 5500stg low nox
What are the extra charges
Apart from vrt and nox

Casati

cavan4sam wrote: »

So no savings by going north any more?

Looking at a 15 octavia around 5500stg low nox
What are the extra charges
Apart from vrt and nox

No other extra charges

deezell

colm_mcm wrote: »

I don’t disagree with your post in general, but just to pull you up in a few points


The OMSP calculations process is publicly available, you’re painting this as some sort of mysterious illogical formula. And while SIMI were unlikely to have been excluded at every point, given that they represent the industry - is there anything to suggest that the SIMI invented the OMSP/depreciation system?



That’s 100% not how price fixing works.

Starting with an agreed selling price and working backwards to the tax free base sounds like a form of price fixing. Why not just charge 60% VAT, or a range of VAT percentages? Because then it would be transparent what we pay, and a saving on base price would be a saving in Tax. We are being royally f***d, we all know that. Barrow boy main dealers and hucksters have had it their own way for so long, and are set to restore the status quo. As for 'real' price fixing, manys the midlands hotel lunch took place among national dealers to do just that.
If you turned up in the morning with a deal for a given new car model at a much reduced brand new base price, and decided to import a 100 of them, do you think for a second you will pay less VRT on it than is currently calculted by reference to the 'industry'. If I can get a crate of legitimate phones in the EU for half price, I can sell them for that with half the tax. It's called the free market. The only barriers would be technical and regulatory, but not price control.

Casati

Casati wrote: »

No other extra charges

If its GB Reg it might be liable for VAT.

colm_mcm

deezell wrote: »

Starting with an agreed selling price and working backwards to the tax free base sounds like a form of price fixing. Why not just charge 60% VAT, or a range of VAT percentages? Because then it would be transparent what we pay, and a saving on base price would be a saving in Tax. We are being royally f***d, we all know that. Barrow boy main dealers and hucksters have had it their own way for so long, and are set to restore the status quo. As for 'real' price fixing, manys the midlands hotel lunch took place among national dealers to do just that.
If you turned up in the morning with a deal for a given new car model at a much reduced brand new base price, and decided to import a 100 of them, do you think for a second you will pay less VRT on it than is currently calculted by reference to the 'industry'. If I can get a crate of legitimate phones in the EU for half price, I can sell them for that with half the tax. It's called the free market. The only barriers would be technical and regulatory, but not price control.

Price fixing is where you control the price of something.
VRT is a tax on an estimated value, it applies to everybody the same, so in no way fixes the price.
The price fixing that historically took place between dealers was mainly to do with fixing trade in prices as opposed to new prices.

BorneTobyWilde

Irish revenue make it up as they go along, one guy will tell you 600, and another guy will tell you 2500. So something is not right, unless it's corrupt, people on the take.
I've seen it many times , and heard about it many times. If there are laws, and duties, and these are set in stone, then how the fck can one guy make it out so differently .

BorneTobyWilde

Cars from Japan have 10% duty on the price you paid for it and shipping???

colm_mcm

BorneTobyWilde wrote: »

Cars from Japan have 10% duty on the price you paid for it and shipping???

Yes. also VAT and VRT

Casati

BorneTobyWilde wrote: »

Cars from Japan have 10% duty on the price you paid for it and shipping???

Think it’s 7.5% or moving to 7.5% soon as a trade deal was done - in a few years it will be zero

vintagevrs

BorneTobyWilde wrote: »

Irish revenue make it up as they go along, one guy will tell you 600, and another guy will tell you 2500. .

What do you mean?

Atlantic Dawn

What if you buy a European built car from a dealer in Japan which was firstly registered in Japan, is that liable for 10% duty?

Pentax

Hi All,

Simple question -

If i buy a uk (mainland) car now and bring it back to ireland (01/2021) what do I need to pay -

Lets assume the car is a BMW 320D 2019 with 8000 miles on the clock with a purchase price of 28,000 euro

VRT (including Nox) is 6500 euro -

What is the VAT?

What is the Duty?

Are there any other hidden costs.

The exercise now seems really complicated and rather unfair.

Thank You

masterboy123

Hello everyone,

I am really interesting in getting Mercedes GLC. I am unable to calculate the additional costs including the new VAT.
Could someone please help me to calculate the approximate figure?

https://www.autotrader.co.uk/car-details/202010205230517?advertising-location=at_cars&keywords=Premium&year-from=2020&maximum-mileage=20000&postcode=BT1%201AA&model=GLC%20CLASS&sort=price-asc&page=1&make=MERCEDES-BENZ&include-delivery-option=on&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New

Thanks so much!

User1998

Below is for Pentax. Masterboy you can work out your own if you plug in your own figures

VAT is based on the purchase price + shipping

€28,000 + say €400 for shipping
= €28,400
x 10% customs (€2,840)
€31,240
x 21% VAT (€6,560)
€37,800
+ VRT (€6,500)
€44,300
+ Customs broker/Port charges (€250)
€44,550
+ Tax/NCT (€150)
€44,700

I honestly don’t know if the 10% customs applies here. It does when importing cars from outside the EU. Other posters are saying 7% but when I import cars I pay 10%. If not just remove the 10% part and re calculate

Brewster

User1998 wrote: »

Below is for Pentax. Masterboy you can work out your own if you plug in your own figures

VAT is based on the purchase price + shipping

€28,000 + say €400 for shipping
= €28,400
x 10% customs (€2,840)
€31,240
x 21% VAT (€6,560)
€37,800
+ VRT (€6,500)
€44,300
+ Customs broker/Port charges (€250)
€44,550
+ Tax/NCT (€150)
€44,700

I honestly don’t know if the 10% customs applies here. It does when importing cars from outside the EU. Other posters are saying 7% but when I import cars I pay 10%. If not just remove the 10% part and re calculate

This is looking like it. As car was built in Germany (EU origin) ultimately I don’t think the customs will apply. However, everyone is still confused. At first revenue circular said customs wouldn’t apply, then on Thursday circular seemed to change to say customs would apply. So I wouldn’t be buying anything for the moment unless it’s from an Irish dealer.

Brewster

Brewster wrote: »

This is looking like it. As car was built in Germany (EU origin) ultimately I don’t think the customs will apply. However, everyone is still confused. At first revenue circular said customs wouldn’t apply, then on Thursday circular seemed to change to say customs would apply. So I wouldn’t be buying anything for the moment unless it’s from an Irish dealer.

But I would also add, that even if customs wasn’t applicable, you will buy the car cheaper in Ireland. It would simply make no sense to go to the U.K. in this situation if you ask me.

L-M

I spoke to a chap today (Dealer) who bought cars in UK last week and his transport company rang him today to say that he would have to pay customs on both cars before they come through the port. (both Vws)

Brewster

L-M wrote: »

I spoke to a chap today (Dealer) who bought cars in UK last week and his transport company rang him today to say that he would have to pay customs on both cars before they come through the port. (both Vws)

Sounds fairly ominous so. If customs is applied, it will price a significant number of U.K. cars out of Irish market. Only new high end cars will still be in play as I would see it.

L-M

I just text another dealer friend and he confirmed it saying revenue changed the goal posts yesterday.

Anyone thinking that Dealers are happy this is happening are incorrect. There is not enough supply in this country to supply the used car market. Also new cars have just gotten more and more expensive over the last few years.

It’s going to be a hard year for the “trade”.

Also there was an argument about OMSP recently. OMSP is actually a good thing. It’s basically means the customer pays less VRT, the OMSP basically assumes every car is sold at an 8 percent discount and bases the VRT amount off that figure rather than the higher RRP.

Example, car RRP €40,000, VRT rate 20 percent. Instead of paying €8,000 VRT you pay VRT on 92 percent of 40, ie 40 x . 92 = 36800 VRT paid €7,360.

That’s obviously not exact calculations but long story short, OMSP means less VRT.

Brewster

L-M wrote: »

I just text another dealer friend and he confirmed it saying revenue changed the goal posts yesterday.

Anyone thinking that Dealers are happy this is happening are incorrect. There is not enough supply in this country to supply the used car market. Also new cars have just gotten more and more expensive over the last few years.

It’s going to be a hard year for the “trade”.

Also there was an argument about OMSP recently. OMSP is actually a good thing. It’s basically means the customer pays less VRT, the OMSP basically assumes every car is sold at an 8 percent discount and bases the VRT amount off that figure rather than the higher RRP.

Example, car RRP €40,000, VRT rate 20 percent. Instead of paying €8,000 VRT you pay VRT on 92 percent of 40, ie 40 x . 92 = 36800 VRT paid €7,360.

That’s obviously not exact calculations but long story short, OMSP means less VRT.

I’d agree, simply not the stock here to go around. Yes, the dealers lose out by some individuals sourcing the car in the U.K. themselves, but overall the import business is very lucrative for the Irish dealer.

User1998

User1998 wrote: »

Below is for Pentax. Masterboy you can work out your own if you plug in your own figures

VAT is based on the purchase price + shipping

€28,000 + say €400 for shipping
= €28,400
x 10% customs (€2,840)
€31,240
x 21% VAT (€6,560)
€37,800
+ VRT (€6,500)
€44,300
+ Customs broker/Port charges (€250)
€44,550
+ Tax/NCT (€150)
€44,700

I honestly don’t know if the 10% customs applies here. It does when importing cars from outside the EU. Other posters are saying 7% but when I import cars I pay 10%. If not just remove the 10% part and re calculate

Basically 60% more expensive than someone in England pays for the same car.

Government needs to take a look at VRT again in light of the import and VAT costs.

L-M

Brewster wrote: »

I’d agree, simply not the stock here to go around. Yes, the dealers lose out by some individuals sourcing the car in the U.K. themselves, but overall the import business is very lucrative for the Irish dealer.

The only person losing out is the person who buys new cars because they typically trade in a 3 year old car of which the price is dictated by used import prices.

We don’t lose out, there’s only a certain amount of home grown supply and there’s a certain type of person who likes the comfort of buying from a dealer.

If buying a new vehicle from a dealer in northern Ireland shouldn't be too bad would it. They could invoice without VAT and then we'd pay Irish VAT and the VRT. No customs.

Brewster

L-M wrote: »

The only person losing out is the person who buys new cars because they typically trade in a 3 year old car of which the price is dictated by used import prices.

We don’t lose out, there’s only a certain amount of home grown supply and there’s a certain type of person who likes the comfort of buying from a dealer.

No, but if every individual who goes to the U.K. went to their dealer and gave them the x margin to bring in a car for them, the dealers would be better off. This is not up for debate.

Brewster

Deleted User wrote: »

If buying a new vehicle from a dealer in northern Ireland shouldn't be too bad would it. They could invoice without VAT and then we'd pay Irish VAT and the VRT. No customs.

Correct

masterboy123

Thanks.
It's like UK price + 50% more on top of UK price

I will save money to get a full Irish car in this case.

User1998 wrote: »

Below is for Pentax. Masterboy you can work out your own if you plug in your own figures

VAT is based on the purchase price + shipping

€28,000 + say €400 for shipping
= €28,400
x 10% customs (€2,840)
€31,240
x 21% VAT (€6,560)
€37,800
+ VRT (€6,500)
€44,300
+ Customs broker/Port charges (€250)
€44,550
+ Tax/NCT (€150)
€44,700

I honestly don’t know if the 10% customs applies here. It does when importing cars from outside the EU. Other posters are saying 7% but when I import cars I pay 10%. If not just remove the 10% part and re calculate

trellheim

The problem is also the OMSP/VRT discourages high-spec new cars so you end up with paddyspec cars as the new stock on the Irish market so that they can be sold at a price that will shift rather than same/same UK cars ;

Atlantic Dawn

If private NIRL style plates were put on a UK reg car by a dealer up north and you bought it, could Revenue tell from V5 if car was originally UK or NIRL from new?

User1998

They’d look at the registered owner’s address. Both current and previous owner address is visible on the v5

reubenreuben

deezell wrote: »

VRT is a complex tax, in real terms, its actual percentage is not of the pre tax price, but of the final price.
Example. A medium sized tax free car costs 20k. Say if vat is 20% for round figures, thats 24000 inclusive.Say Its VRT rate is determined at 25% and nox at say 500. This 25% is not applied to the pre VRT price, but is 25% of the omsp, or the general selling price. What that actually means is the remaining 75% must be the car cost plus VAT, meaning the VRT is actually at least one third of the pre VRT price, 33.3%, so our car finally costs 32000 plus 500 Nox. The total tax take is 12500, on a original cost of 20k. In real terms, that's equivalent to 62.5% tax applied to the base price.if VAT goes back to 23%, total take is actually over 66%. Its the optics of reverse tax calculation, OMSP etc which gives the impression of 45% in this example, when its actually much larger. It also allows the revenue to fix the amount take in VRT, regardless of if you get a discount for cash say, the VRT take on the car remains the same. It's excise disguised as a registration fee, same as the excise on a pint, but it allows for reduction by reference to the used OMSP. SIMI and Revenue dreamed this one up, and market OMSPs for new cars snd used are a closely guarded process hatched between them. To put it bluntly, our revenue engages in price fixing, as your OMSP will not vary no matter how little you pay for an import, you're taxed on dealer prices. For a brief decade we beat the system, when the glut of cheap quality used UK cars and the rise if Euro v Sterling defeated even this labyrinthine tax. (Do you realise the humble Punt is effectively worth £1.10? Unthinkable before the Euro) Alas, they have us where they want us. Screwed again, just like the 80's.

This country is downright miserable towards car buyers.