VAT & Importing from NI

yop

Lads
I was talking to a garage today in NI, he asked me if I had a VAT number that he could see me Zero VAT on the car.
I said I did not but my brother had one (he lives at a different address) and the garage said that will be grand, use his.

I mentioned to him that I thought that the VAT man here might come after my brother for the VAT and he said that it is very common for privat individuals to go up North with a "loaned" VAT number and to take the car down south with ZERO VAT.

He also mentioned that the VAT man down her is not really interested in motors under 30k?

Is he talking cr ap or the truth?

Seth Brundle

I suspect the former. He will not be liable for any punishment if caught!

murphaph

It's up to your bro really. You don't have to pay VAT for an item used in the running of a business, as you are not seen as a 'consumer' of that item. Because we're all happy EU campers a UK garage can indeed remove his liability to collect VAT on behalf of the Inland Revenue if he can get proof that his customer is VAT registered in another EU state.

You and your bro have to be happy that you are commiting tax evasion and will be liable for any penalties the courts may throw at you, however unlikely you think this is. I know my father never let me use his VAT number for fear of the revenue catching him and I respected that. I know it's tempting, and you will probably get away with it, but don't come running back here whining if you're caught!

MrPudding

If he puts it through the company he will have to account for it when he puts in his returns. It is not a matter of whether or not he gets chased, it will be there in his tax returns and he will have to give a reason why it is a tax deductable item.

MrP

alias no.9

Businesses cannot buy cars VAT free like they can commercial vehicles used for business purposes. This means the VAT needs to be paid up there or down here, now let's see 17.5% VAT in NI or 21%VAT in ROI, I know which one I'd be paying.

kluivert

Need some more details about the car for start.

Vat is charged to all purchases by Europeans in the EU. So as per above or which would you rather suffer, 17.5 or 21%.

And as before ONLY commercial vehicles can be used to claim vat back on.

yop

Thanks lads, seems I will be paying the VAT!

DublinWriter

yop wrote:

Thanks lads, seems I will be paying the VAT!

..and the VRT too.

yop

Don't depress me!! Virtual Ripoff Tax

Tenshot

I'm looking at buying a car in the UK at the moment and checked into a few of these points last week with a friend in the business. He said:

- Businesses can't claim back VAT on non-commercial vehicles (even if they're for a legitimate use)

- When importing, MAKE SURE you have a VAT invoice from the original seller, or Revenue may assume you got the vehicle VAT-free as an export (even if it's second hand) and charge you 21% VAT on it. The VAT invoice must have a legitimate UK VAT number on it (apparently, the inspectors are by now wise to the trick of printing your own invoice..)

- You should be able to get a VAT-free price from a UK dealer if you supply a legitimate Irish VAT number, but again, only for commercial vehicles (some dealers may require proof of export, and refund the VAT retrospectively).

Your mileage may vary, of course...