Refund on VAT paid in NI

cheesenaan · 15-01-2024 11:25pm #1

I am looking to buy a second hand (2021) GB registered vehicle from NI. The vehicle was never registered in NI. Therefore, I would be liable for customs and vat @ 23% prior to registration. However, the seller advised me that once I pay the VAT in ROI, they will refund me the NI Vat paid. However, the vehicle is described a VAT 'margin' vehicle. A friend of mine advised that I could not reclaim the VAT from NI as the seller advised unless it was a VAT qualifying vehicle.

As I am hearing conflicting information I would appreciate any guidance? Thank you.

User1998 · 15-01-2024 11:34pm

VAT refunds have recently become available on on margin vehicles:

https://www.gov.uk/guidance/claim-a-vat-related-payment-if-you-buy-second-hand-motor-vehicles-in-great-britain-and-move-them-to-northern-ireland-for-resale

mac167 · 16-01-2024 12:51pm

Can we do this ourselves as a Private buyer?

https://www.boards.ie/discussion/comment/121621452#Comment_121621452

Furze99 · 16-01-2024 1:00pm

https://www.boards.ie/discussion/comment/121623334#Comment_121623334

Are you registered for VAT? If registered and collecting VAT, then you can claim VAT back on business purchases.

cheesenaan · 16-01-2024 2:38pm

I query the private element to this also. However, if you are paying VAT in ROI, can you pay it twice as NI is in the EU in respect of vat on goods?

Reading the HMRC advice it seems to say that the NI dealer isn't liable for VAT on vehicles resold to EU/NI. The Vat isn't taken.

Claiming back VAT on a business purchase is your own VAT/Tax issue where the VAT was taken.

mickdw · 16-01-2024 2:48pm

The reclaim on non vat registered cars is only available to registered motor dealers.

In short, if this is a margin scheme car and you import it privately, you can forget about getting any vat back.

A motor dealer here can recover 1/6 of the uk purchase price on a non vat qualifying car.

A private person cannot.

cheesenaan · 16-01-2024 2:58pm

What about a qualifying vehicle that was not registered in NI?

User1998 · 16-01-2024 4:14pm

https://www.boards.ie/discussion/comment/121623334#Comment_121623334

No

Refund on VAT paid in NI

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