Do we pay VAT on UK-imported cars now?
If I import a second hand UK car (from England, Scotland or Wales) into the Republic of Ireland from 2021 on, am I liable to pay VAT and/or an import charge on top of the current VRT and NOx charge?
Keiron Fletcher (Meath)Jan 2021 Filed under: importing
Expert answer
Hi Keiron,
Yes, there’s been a bit of a shake-up in imports from the UK, post Jan 1st (which kind of got lost in all the COVID and Trump headlines). According to Revenue, if you’re importing a car from the UK, you will now have to complete an electronic customs declaration form BEFORE going to collect the vehicle (you can find them here) and you’ll then be liable for three potential costs — customs duty, VRT (as before, including the NOx charge) and VAT, currently at 21 per cent. That VAT charge, previously only applied to vehicles that were either new or less than six months old (or with fewer than 6,000km on the clock) now applies to all imports.
Except it doesn’t — if you import a car from Northern Ireland, thanks to NI’s new special status as per the Brexit withdrawal agreement, then the VAT will only be charged on new vehicles, and you won’t have to pay any customs duty (sometimes referred to as import duty).
Incidentally, that customs duty (which is charged at 10 per cent of the total value of the car, plus carriage costs) will NOT be applied if the car was built in the UK, or in an EU country. That’s a potential minefield as you’d be surprised how many cars that you assume to be British or European are actually made in, say, South Africa or the US. It obviously affects Japanese and Korean-built cars, but again, you’d be surprised how many of those that we buy are actually built in the UK, France, Slovakia or elsewhere in Europe.
Would this car be exempt from VRT?
Hi there,
If I buy a car in NI and drive it in Portugal for seven months while living there, is it exempt from VRT?
John Belton (Dublin)Jan 2021 Filed under: VRT
Expert answer
Hi John,
Yes, in theory, but you’ll need to keep a carefully compiled paper-trail of what you’ve been doing, and your reasons for bringing a car from NI to Portugal and subsequently to Ireland. Revenue will, of course, follow the rules when it comes to applying VRT or VRT relief for changes of address, but they’re likely to be suspicious of your motives, so make absolutely sure you’ve got everything properly documented.
How old is classic for motor tax?
How old must my (any) car be to qualify for classic motor tax in Ireland?
Thank you.
Maurice Hyland (Dublin)Jan 2021 Filed under: taxation
Expert answer
Hi Maurice,
A car has to be over 30 years old to qualify. See Motor Road Tax Prices in Ireland Explained for full details.
What colour for the Civic Type R Sport Line?
Hi.
What colours are available for the Honda Civic Type R Sport Line, please?
MIKLOS PENZES (LETTERMORE)Dec 2020 Filed under: paintwork
Expert answer
Hi Miklos,
According to the Honda Ireland website, the colours are Crystal Black Pearl, Brilliant Sporty Blue Metallic, Rallye Red, Polished Metal Metallic and Sonic Grey Pearl.
Make sense to import a van to convert?
Hi there,
I'm thinking of importing a panel van (Peugeot Boxer) from the UK to convert to a camper in Ireland. Is this a wise thing to do considering VRT etc?
Jason Christiansen (LETTERMORE)Dec 2020 Filed under: importing
Expert answer
Hi Jason,
It’s not a bad thing, at any rate. As far as campers are concerned, you get charged the same 13.3 per cent VRT rate as regular panel vans at the point of import (based on the Irish market price, of course), but the good news is that once you have it converted it’ll only cost you €102 to tax it for a year.
I have a car in the UK for my sister...
I am living in the UK and bought a car in London on behalf of my sister in Dublin with a view to transfer before Brexit hits. For a variety of reasons I had to register the car initially in my name. On completing the sale the dealer mentions "oh by the way due to COVID, DVLA will take six weeks to get the new V5 logbook to you"!
So, can she arrange to have it shipped to Dublin before I get the V5 (so it arrives in Ireland before 1st Jan 2021 to avoid any potential customs tariff if no-deal Brexit)? What happens if I can't get the V5 to her before her 30 days to sort the VRT expires (as now seems likely)? I do have a copy of the previous one with CO2 and NOX figures. Will she struggle to insure it without the V5 in her name? I have a bad feeling this will not end well!
Any advice appreciated.
Peter Dupont (LONDON)Dec 2020 Filed under: importing
Expert answer
Hi Peter,
I don't think you need to massively worry about any of this as, even if you can get the car here before the end of the year, it's the date that it's registered that counts with regards to VRT and other charges. And it will be impossible to get an appointment to have the car inspected for VRT purposes before the end of the year now.
I don't think it will be an issue getting insurance, but it's best that your sister talk to the insurer to ensure they know the situation.
Do I need an insurance green card now?
I will be travelling from Wales via Holyhead by car. I am old enough to remember "green cards" for motorists on continental roads; will I require one when driving in the Irish Republic?
Eddy Rowlands, Anglesey
Eddy Rowlands (Beaumaris)Dec 2020 Filed under: insurance
Expert answer
Hi Eddy,
Unfortunately, yes you will. Thanks to the debacle that is Brexit, any UK drivers coming to Ireland after Dec 31 2020 will need to have a green card for insurance. Worth getting an international driving licence too...
Can I claim back VRT importing to NI?
I live in the Northern Ireland. If I buy a new car from a dealer in the Republic, can I claim back the VRT and pay UK import duties? Would this be financially wise?
Jackie Rodgers (DERRY)Dec 2020 Filed under: VRT
Expert answer
Hi Jackie,
Yes, but there’s a better way to do it. If you’re buying from a dealer, it would be easier for them to claim back the VRT at the point of export, and sell you the car at the ex-VRT price. Not all dealers will be happy to do this but it’s worth asking the question. As a private buyer with UK residency, you’ll have to jump through a lot of hoops to claim back the VRT yourself.
Will my BMW 220i's tax change in 2021?
Hi,
I'm considering buying a car in the UK. It is a BMW 220i and has a 1,998cc engine. I would hope to have it registered in Ireland before the end of Dec 2020. I understand that the motor tax on higher-emitting engines is going to change from 2021, but is it likely that the tax on this car would be increased greatly?
Thank you for your assistance.
Mary
Mary Newe (Dublin)Dec 2020 Filed under: taxation
Expert answer
Hi Mary,
If you do manage to get it registered before the end of this month (if you've not already got a VRT appointment, I'm afraid to tell you that you are unlikely to now) then your car will be taxed on its NEDC CO2 rating, which I believe is 127g/km. That means €270 per annum now and no change for 2021. These guides might be of interest:
When is the updated Kia Picanto here?
When is the updated Kia Picanto going on sale in Ireland?
Colum Madden (Galway)Dec 2020 Filed under: choosing new car
Expert answer
Hi Colum,
The facelifted Picanto is the one Kia Ireland is now marketing and pricing on its website. We spoke to our contact there and he confirmed that cars are already arriving into Ireland now and your local dealer should be able to talk to you about pricing and availability.