Expert answer

Hi Ciarán,

Revenue does not make the information as easy to understand as it could. To clarify one thing straight away, you cannot get around paying the VRT – that's required no matter what and is not affected at all by how long the Caddy has been in use in the North.

It's the Irish VAT (and import duty) that are potentially not required if the vehicle has been in use in the North for, as Revenue says, “a reasonable amount of time”. Essentially, so long as you can prove that it was not just imported into the North to be sold on for export to the South, it's fine. You'll need paperwork to show this, such as MOTs from the North. Prove that and you will only pay VRT.

If you cannot prove this, the van will be subject to Irish VAT at 23 per cent and import duty at 10 per cent.

However, it should be possible to get the seller to zero-rate the van for VAT so long as they're not selling it through the VAT Margin Scheme. To do that they will need proof of export, so they may require more details, and possibly even payment of the VAT up front to be refunded once you can prove the van has been taken out of the country. Then you'll pay Irish VAT and import duty based on the ex-VAT UK price.

Talk to the seller to find out more and feel free to come back to us to clarify any of these points.

Expert answer

Hi Dillon,

It would make no sense to import such a car from GB (England, Scotland and Wales) as it would attract VAT at 23 per cent and import duty at 10 per cent, on top of the VRT and NOx levy. That is unavoidable in the case of the Tiguan – and assuming you are an Irish resident already, not someone moving here from the GB.

The same vehicle imported from Northern Ireland may not be subject to any VAT or import duty, so long as it was either sold new in the North or it has been imported into the North according to the Windsor Framework and then used there. You will need paperwork to prove all of that.

Assuming you find a car that qualifies in NI, then it's just VRT and the NOx levy. The latter will be a minimal amount for the PHEV as emissions of NOx will be ultra-low (likely no more than €200, depending on precise specification of the car).

Likewise, CO₂ emissions should be sub-50g/km (check this, as it depends on the specification), so VRT is calculated as seven per cent of the Open Market Selling Price (OMSP), with a minimum fee of €140.

The OMSP can be tricky to estimate as it's the figure Revenue reckons the car is worth once registered on Irish plates. A quick scan of the classifieds suggests this could be in the region of €45,000-€48,000.

Assuming the worst case – i.e. an OMSP of €48,000 – then the VRT bill would be €3,360.

So, aside from travel/transport and insurance, this Tiguan should cost a good deal less than €4,000 on top of its purchase price to import.

If you can find one that qualifies for importation without VAT or import duty, and its purchase price is equivalent to a value lower than €40,000, then you are potentially making a saving.

Just double-check all your paperwork. It will obviously be more hassle than buying at an Irish dealer, with no option to trade your existing car in, so weigh up the savings to ensure it's all worth it.

Expert answer

Hi San,

From the details you've provided, we believe there would be no VAT or import duty, though you will need proof that the dealer imported the car according to the Windsor Framework rules. Mention it to them, as I'm sure they'll know exactly what you need.

And yes, assuming the car is under the VRT threshold, there should be a VRT rebate in full as well.

Expert answer

Hi Dave,

We believe that vehicle should fall under category M for VRT calculations, and that is done solely on the engine size.

It's €2 per cc for the first 350cc than €1 per cc from then on, so it should be €1,050 for a vehicle with a 650cc engine.

Expert answer

Hi Jay,

Revenue's VRT calculator is far from perfect, so you'll have to estimate the VRT yourself and hope you're close. For starters, the model you're looking at should have a CO₂ rating in Band 18 for VRT (156-170g/km), meaning 30 per cent of the Open Market Selling Price (OMSP).

Now, as you probably know, the OMSP is what Revenue believes the car to be worth once registered in Ireland and with a niche model such as the MX-5, it's not easy to guess what it will say.

If you believe it will be €30,000, for example, then the VRT bill will be 30 per cent of that, i.e. €9,000.

Expert answer

Hi David,

With just two seats – and presumably a bulkhead behind them – that Defender should be a Category C commercial, with VRT at just €200, regardless of how you intend to use it afterwards. There is no NOx levy on commercial vehicles.

Unless the vehicle was only recently imported into the North from the rest of the UK, neither should you be liable for any VAT. But as the Defender was made in England, there should be no customs duty no matter when it arrived in the North.

Expert answer

Hi Mick,

It's very likely that the dealer is correct, but you will need to make sure they give you all the paperwork ahead of time so you can check. For example, if the car was previously imported to NI, but not by the dealer you're buying the car from, then our understanding is that they could not do the requisite customs declaration now.

Essentially, you need to have proof that the dealer you are buying the car from is the same entity that brought the car from England and that they imported it according to the Windsor Framework rules. They should be able to give you a copy of the SAD (Single Administrative Document – or form C88) for example, plus proof of transportation of the car into the North.

If you're satisfied that the paperwork is in order then you don't need a customs declaration at all, just book a VRT inspection with the NCTS.

However, make sure you do have proof of all the facts, as Revenue can contact importers after the VRT inspection and request more information.

It's highly likely that the NI dealer is familiar with the paperwork requirements and that they'll furnish you with what you need.

Expert answer

Hi Michael,

So long as you can prove that fact, using MOT dates perhaps, then you should not be liable for any customs duty or VAT on importation. Of course, you will still need to pay VRT and the NOx levy.

Read our Guide to importing cars from Northern Ireland for full details.

Expert answer

Revenue does run a tax-relief scheme for vehicles adapted for drivers and passengers with disabilities, but the Government has confirmed that this does not apply to public service vehicles such as taxis or hackneys, wheelchair-accessible or not. In other words, a wheelchair-accessible taxi is not automatically free of VAT and VRT.

What you can benefit from is the National Transport Authority's Wheelchair Accessible Vehicle (WAV) Grant Scheme, which offers a cash grant towards the cost of buying or converting a wheelchair-accessible taxi or hackney. That grant doesn't remove VAT or VRT, but it can significantly reduce the overall cost to you – by up to €17,500 depending on the age of the vehicle.

Read the information guide on the WAV Grant Scheme here

Expert answer

Hi Niall,

If the car has been in use in the North since new, or for what Revenue loosely calls “a reasonable amount of time”, then no VAT or customs duty will be payable. A full MOT history from the North should cover that, along with details in the car's equivalent to the old log book.

The VRT relief is limited, though, and only applicable to cars worth up to €50,000 in Revenue's eyes. There is no relief for cars worth more than that and it tapers down for cars worth more than €40,000 as well.