Can a NI car dealer sell a car VAT-free to an Irish buyer?

Hi,

I was just reading your article Guide to Importing a Car from Northern Ireland, and I have a question about UK VAT.

Here's the hypothetical situation: a customer in the Republic identifies a car online in the North, priced at £30k. Now, this price includes UK VAT of £6k (20 per cent). Can that car be sold to the customer in the Republic for £24k?

I understand there is VRT to be paid upon import but no Irish VAT. But I'm just not sure on the UK VAT element of the equation.

Thanks a lot

Alan Furlong (Dublin)

Sep 2025 Filed under: importing

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Expert answer

Hi Alan,

This is potentially possible, but not the default and it depends on a number of factors. The first of which is whether the dealer selling the car is operating under the 'VAT margin scheme', where VAT is paid on their profit, not the total cost of the car. If that's the case, then forget it.

If they're not, and the car is “VAT-qualifying”, then your suggestion is possible, so long as the seller is willing to rate the car for zero VAT on export. There's nothing compelling them to do that, so best thing to do is start a conversation with the dealer at an early stage about this whole process. Most Northern Irish dealers are now well-versed in the intricacies surrounding exporting cars to the Republic of Ireland.

Shane O' Donoghue - Complete Car Advisor