Expert answer

Hi Eamon,

Why? Because the government can get away with it, that’s why. The EU has repeatedly told the Irish government that VRT is unfair, but then all the government has to do is wave in the general direction of Denmark, which also charges hefty taxes on cars. Basically speaking, at some point, the patience in Brussels will run out and VRT will have to be scrapped. But don’t get your hopes up — no government can afford to give up a €1 billion annual tax take, so VRT will simply be renamed and repackaged in some other form. It’s never going to go away.

Expert answer

Hi Chaz,

We put this question to vehicle records experts Cartell.ie and here's what they came back with:

"Upon importing a new vehicle into Ireland you must pay destination VAT, which means you pay the VAT in the country that it will be first registered. The vehicle is classed as new if it is less than six months old or has travelled less than 6,000 kilometres. If you buy a new car from the UK, you will pay the 20% VAT there. Then once you import the vehicle pay your 23% Irish VAT; you then reclaim the original VAT paid back from the UK.

Then you must pay the VRT, which varies from 14- to 36% depending on the CO₂ emissions. If the vehicle is being bought through a registered SIMI dealer then they should take care of all this and the customer should just get the car for the price agreed. I would recommend that the customer gets a copy of the VRT and VAT receipts to prove that both have been paid. I would also recommend that the customer checks with SIMI to make sure that the garage is still a registered member.

You would also want to make sure that the warranty is covered throughout Europe. The dealer you bought it from will cover the warranty but another Nissan dealer may not. Also some warranties are extended by a year or two in certain countries. For example BMW has a standard two-year warranty, but BMW UK extends that to three years - but only in the UK. This may or may not be the case but worth looking at."

Hope that helps. Come back to us if you need more assistance.

Expert answer

Hi Patrick,

We put this question to the official vehicle records experts, Cartell.ie. Jeff Ahern, Cartell's Director, responded in detail:

"Until the arrival of Cartell.ie in 2006 and subsequent car history checking companies in 2007/8, it was extremely difficult to get the history of a vehicle both in Ireland and the UK. Moreover, the fact that a car was imported was hidden from the Irish consumer. Now that is not the case. It is easy to trace the history of a vehicle within Ireland and the UK. That said, a study was carried out into the number of UK vehicles hitting Irish roads that were written off and clocked. The figures were quite startling in that up to 1 in 10 vehicles imported from the UK were written off and 11% had a mileage discrepancy. This affected a large number of people who had bought these vehicles before the advent of car history checking and therefore a stigma still persists with UK vehicles." 

"Furthermore the above issue was compounded by the data on the Vehicle Registration Certificate (VRC) in that it only shows the number of Irish owners and not any additional owners from the UK, which allowed some dealers to manipulate or gloss over the additional history."

"However, vehicles are now being advertised for at least the same price as their Irish counterparts. The UK car will often have a higher specification. But let's not forget that most Irish people know that whoever brought a car in from the UK should have paid less for it anyway and therefore they are inclined to want a similar discount when you are selling it on. And as a car ages, the extras become more of a selling tool than an earner as the depreciation had reduced their value." 

"So in summary, a UK car can have a higher specification and should be worth more than a similar Irish model of same year and mileage, but in practice - and due to the above - it will be worth the same or less. Don't forget too that a person could easily check an Irish car with a full service history by contacting the dealer who could be in their local area rather than having to ring the UK, which isn't an issue nowadays with the internet, but perception and ease are everything. "

Hope that all helps

Expert answer

Hi Ciaran,

The Nissan Skyline saloon did not really get caught up in the upsurge of popularity experienced by other rear-wheel drive Japanese four-doors towards the end of the Celtic Tiger era so is still a fairly rare model. This would go some way to explaining why the Revenue Online Service (ROS) value seems so low. The Open Market Selling Price (OMSP) is based on an 'average' for that particular model, but with so few cars having been imported it can be difficult to determine a true average.

Regarding the car you have highlighted, and taking into account current exchange rates and the VRT calculated by ROS that car would cost €5,824, which seems expensive to our eyes.

A thorough search of all the classified adverts we could find revealed a few similar cars, albeit with higher mileage, in the region of €3,500 - €4,000.

The one you're looking at does have some nice additions such as the wheels, suspension and spoiler, but whether they and the low mileage warrant a near €2,000 premium is a question only you can answer.

Let us know how you get on.

Expert answer

Hi Andrew,

We put this to Cartell.ie, the official vehicle records experts, and they had an interesting slant on things:

"The VRT issue is tricky - and the buyer must be extra vigilant now. With the transfer of functions for VRT calculation to the NCT centres the officials there have been warned to check the interior of the vehicle for evidence of 'extras'. This means the buyer could be unexpectedly hit with a premium, i.e. pay over-the-odds VRT on a vehicle just because there are additional features not available to an indigenous Irish equivalent vehicle. The best thing for the buyer to do is contact the NCT centre first, before importing the vehicle, and have a chat about likely costs for additional features. It's the best way to avoid surprises."

Sound advice if you ask me.

Expert answer

Hi Andrew,

According to Ciaran Allen, Sales Manager of Mercedes-Benz, "Stop/start is the main factor in reducing CO₂ and is available now on manual models. We are not expecting full availability on stop/start including seven-speed auto until August production - September arrival. Because of our market seasonality August and September are not big production months for us, so while it will be available we really consider E-Class seven-speed as a 2012 car. The model price won't be reduced but the auto road tax will go from band C to band B."

Hope that answers your question?

Expert answer

Hi William,

Assuming we're talking about new cars or those that are less than six months old (and have less than 6,000km on the clock):

VAT qualifying cars are those that the UK vendor may sell on without charging for VAT to the following:

• a customer in a country outside the EU
• someone who isn't registered for VAT who will take a new car to another EU country
• a VAT-registered business in the EU

In your case, yes, you'd still have to pay Irish VAT and VRT.

Some light official reading for you around this subject that may explain more:

Revenue.ie: New vehicles purchased by a private individual from a VAT-registered person, including a motor dealer, in another country

HM Revenue & Customs: Sending your motor vehicle to another EU country from the UK

HM Revenue & Customs: Motor dealers and VAT: selling new or used vehicles and extras

Hope that answers your question

Expert answer

Hello David, 

In short - no. Anyone importing pays the same rate of VRT. 

Revenue has a full guide explaining VRT here. 

Expert answer

Hi Ado,

According to the Revenue Commissioners, in relation to scrappage in order to qualify, the car, "must have been insured for use on the road in the name of the registered owner or in the name of the spouse of the registered owner for at least 12 months in the 18 months immediately prior to the date of scrappage."

Since it is more than six months since the car was last insured then I think that you might be out of luck in this case. 

The full list of terms for the scrappage scheme can be found here. 

Expert answer

Hi Jerome,

I spoke to a representative from the National Car Test on your behalf who said that changing your speedometer or your odometer would not affect your NCT at all or the VRT inspection in any way.

I hope this helps