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

Expert answer

Hi Ray,

VRT is the only charge you have to pay (aside from transportation costs) when you import a car from the UK because once VAT has been paid on an item in the EU it cannot be paid again. As regards the accuracy of the online calculator I would say that it can be hit and miss but this can both work for or against you. 

VRT is calculated as a percentage of the Open Market Selling Price (OMSP) and this is pretty much estimated by Revenue based on what cars are selling for and some other combinations that only it seems to know the answers to!

Sometimes the prices can be really high and sometimes they can be thankfully low. You do have the right to appeal a VRT price if you feel it is unduly high. Certainly the calculator will give you a good idea of what you will pay and as such is the same system that a VRT office official will use. From there, they may decide to start charging you for any optional extras that there are on the car and they now have better access to this information. 

Full details of the charges associated with VRT can be found here. 

Take the estimate as a guide price, but be prepared to have to spend a little bit more if your car is subject to a full inspection. 

I hope this helps

Expert answer

Hello Raymond,

One word: tax. The United States and our near neighbours the UK aren't subject to anything like the taxation that we are when it comes to cars. The base price of our cars before you add VAT and Vehicle Registration Tax (VRT) have always been among the lowest in Europe. But when you add the taxes obviously the cars start becoming expensive. 

But also, because these taxes are also on optional extras (including safety features) then car distributors often have to bring in very basic versions so that the ordinary buyer can afford them. Hence, items that you would normally see as standard in other markets have often been taken out, even if this is something like ESP, which is a life-saving safety device. 

Those selling the cars have to do this because of how much of the car's value is going to the Government coffers. It has long been an issue in Ireland and one that the EU have taken a strong interest in too, because it sees it as double taxation on an item, which is against EU law. 

There are also other issues in relation to strengths of currencies at any given time and also that the USA has a manufacturing supply, so specific US-built cars are sold there and aren't treated as imported vehicles. Of course the US is a massive market and hence economies of scale come into play, where as Ireland is a tiny market in comparison.

Prices have come down here because at least now cars are taxed on their CO₂ emissions and not their engine size, which was the case until July 2008 and made little sense. It meant that nobody bought diesel cars but instead bought small, underpowered petrol ones instead. 

With petrol (or should I say 'gas') much cheaper in the US, it has always been easier to buy V6, V8 or even V12 petrol cars there too.

Obviously it isn't ideal for us here in Ireland, but in Europe there are many countries just like us, including Denmark, Norway and Portugal so we are not alone. Just count yourself lucky that you are buying in the US!

I hope this answers your question.

Expert answer

Hi Eamonn,

With today's exchange rate you should land that car in Ireland for about €44,510. VRT is 20% of the open market value, as the emissions put the car in Band C, which equates to about €7,121.

Bear in mind that, if you add options to this car, the value of those will be used to calculate the VRT, so it could be higher depending on the exact specification of your car.

Hope that helps,

Expert answer

Hi Patricia,

Buying a car from the UK can be cost effective. I have done it twice myself and certainly saved money. But like any car purchase you really need to make sure that you do your homework properly and exercise lots of caution. The more you can do in terms of a background check on your car the better.

We would advise you to avoid buying privately in the UK as this could prove riskier. Buy from a main dealer, where there is a proper warrranty and usually a full service history. You are still likely to save money yet there will be greater piece of mind.

Services like MotorCheck.ie offer a very thorough check on UK cars too, so they are worth spending a few Euro on for some added piece of mind. The actual purchase itself isn't really very complicated. You just need to factor in some additional costs like a flight over and a ferry back and then you need to have a good idea of how much you will be paying for the car in Vehicle Registraion Tax (VRT) when you import the car. You can pretty much do this down to the last cent these days on the Revenue on-line calculator.

Research is key; do this and you can perhaps not totally avoid risk, but certainly reduce it.

Expert answer

We spoke to Jane direct to find out a little more information. She currently lives in Northern Ireland and has a 2008 Nissan Qashqai Tekna to trade in. She wishes to downsize and will be moving to the Republic soon with her new car.

Initially Jane believed that she could bring a car to the south VRT-free so long as it was over six months old, but in fact the legislation states that she must have owned the car herself outside the state for six months before importing it.

Jane fancied changing to a Nissan Note, but was unsure of its reliability. We confirmed that the Note has had no major problems and so Jane is going ahead with a swap for a six-month old Note Tekna with only 4,000 miles on the clock. This is a highly specced version with satnav, alloys, Bluetooth etc.

Expert answer

There has been a huge move towards diesel cars here in Ireland because of the change to the road tax and VRT laws in July 2008.

Since then, as you may or may not know, road tax and VRT are calculated according to a car's CO₂ emissions and because diesel cars use less fuel than petrol ones, their emissions tend to be lower.

When your father bought the Mazda6 in 2008 it may well have been better value than the diesel model. Now, there is much less difference between the price.

Before we move away from Mazda, there is now a very good range of diesel engines in the new Mazda6 and that might make the most cost-effective swap if he was happy with the car he has because you will most likely get the best trade-in price from a Mazda dealer. However, by the sounds of things he wants a change.

Covering only 10,000km a year we previously might have said that there was no real need to buy a diesel because you would not save the extra price of the car in fuel.

This point remains true, but the difference now is that the market has changed so much to diesel that petrol cars are likely to lose their value faster and become increasingly unwanted by used car buyers, so at this size of car, we would say yes, move to diesel. Also, if you do buy new, your father will most likely benefit from lower road tax.

Without knowing a budget it is difficult to point you in the right direction but from the cars you mention I'm guessing the budget is between €25,000 - €35,000. This does offer a lot of choice.

The 2004/2005 BMW 320d is certainly an option. Since the current shape model came out in 2005, we would encourage you to look at these, or even a 2006. The prices of these are quite competitive at the moment. A 2005 320d SE at a SIMI dealer would probably cost you between €15,000 - €17,000.

BMWs are always tempting to buy used, but you must choose one that has been properly serviced and cared for, because they can become more expensive to put right as they get older. The choice of used 320d models at the moment is vast so if you do go down that route, shop around. It is a great car and with the small mileage your Dad does it is unlikely to end up costing you too much.

If you want to go down the new route, there are a few that would spring to mind. The first is the Skoda Superb. This car is really brilliant and huge too. It is well made and loaded with equipment. If your Dad likes comfort then this will be right up his street.

Our choice would be the 2.0-litre TDI Comfort for €27,805. It is excellent value for money and comes with lots of creature comforts (cruise control, climate control, etc.), a 170hp diesel that is powerful, yet still frugal at 5.8 l/100km. Road tax on this car is €302 per year. For me, if I were heading out to buy a family saloon today, I wouldn't pass the Superb.

You mentioned some other cars there. The Jetta isn't a bad car, but it's been out a few years now and is probably due an update, so I wouldn't buy that new. The Audi A4 is nice. A new one is going to cost you from €34,060 before you start looking at optional extras, so a 2009 model would make sense with all the options already added. €35,000 should get you a nice 2009 TDI version with lots of the toys thrown in.

Please feel free to come back to us with more details if you like (just add a comment below), but for me I would probably have the Superb.