What does Revenue base the VAT calculation on?
Filed under:
importing
The question
Thank you for your previous reply.
In relation to your previous answer to my question regarding importing a car from the UK, can you please advise on the following question related to VAT:
Is the 23 per cent VAT to be paid on the car calculated from the purchase price paid for the car in the UK or is it on the Irish OMSP value of the car?
Please advise
Asked by Michael ·
Expert answer
Hi Michael,
VAT at 23 per cent is charged on the ‘customs value’ of the car, which, according to Revenue is “the purchase price, plus the cost of transport and insurance, plus any Customs Duties payable”. It has nothing to do with the OMSP (Open Market Selling Price).
Answered by Shane O' Donoghue