Expert answer

Hi William,

Kia Ireland confirmed to us that it can't order a car to the specification another country offers it in – Irish buyers can have the Kia Sportage HEV as a K3 or GT-Line.

You could of course import one from Northern Ireland, though there's a lot of hassle involved, and hence cost. And it will limit how you pay for the car in terms of finance and a trade-in.

The new Sportage in GT-Line S Hybrid spec (front-wheel drive) in the UK is currently listed at £42,175 and the CO₂ emissions rating is 130g/km.

Based on the €53,000 price of the regular GT-Line model in Ireland, let's assume Revenue places an Open Market Selling Price (OMSP) of €58,000 on the GT-Line S.

At 130g/km, the Sportage would be in Band 12 for VRT, at 17.5 per cent of the OMSP – i.e. €10,150. The actual figure paid could go up or down dependant on Revenue's determination of the OMSP – which would only happen after the car is presented for inspection with the NCTS within 30 days of arrival in Ireland.

The NOx levy will be on top of that, but likely only a few hundred Euro.

It's trickier to calculate the VAT and import/customs duty. We believe that import duty at 10 per cent will be required, but what that's calculated against depends on how the car is treated for VAT.

If the seller does not zero-rate the car for VAT for export, then you'd pay UK VAT within that £42,175 price and also Irish VAT on top when you import it. That would make it prohibitively expensive.

Assuming you could get the dealer to zero-rate the car, and UK VAT is 20 per cent, that means the value of it with the VAT knocked off is £35,146. At today's exchange rates, that's about €40,500.

Import/customs duty of 10 per cent is therefore €4,050.

Now, you will have to pay Irish VAT, and this will be charged as 23 per cent of the cost of the car plus the import duty, i.e. €44,550, so the VAT works out as about €10,246.

Totting it all up in Euro:

Pay the dealer (if they zero-rate for VAT): €40,500
VRT based on OMSP assumption: €10,150
Import duty: €4,050
Irish VAT: €10,246

Add those up and it comes out at €64,946, and that's before you travel to the North to bring the car back and pay for registration plates, etc.

Sure, there are a few assumptions built into this calculation, and it's only a rough guide, but it probably indicates that it's really not worth the money or hassle to go down this route.

Expert answer

Hi there,

As the car you're looking at has been in use all its life in the North - and I presume you can prove that - then there should not be any import duty or VAT payable on its importation south of the border. You will have to pay VRT of course. 

Always check your facts directly with Revenue before committing to a purchase.

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 Patrick,

While some owners have reported such issues with the Arkana, not all have – i.e. it's not widely known as an unreliable car, but some vehicles clearly are not up to scratch. Hence, go into the process with your eyes wide open and scrutinise any car you like the look of in detail, checking every sub-system and warning light and getting as long and as detailed a test drive as you can.

Insist on a full service history and also check that the car has had all its recall work done, as the Arkana was subject to a few recalls from Renault.

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 Shona,

Before we take a look for potential cars for you, I would say that you should avoid diesels, as they're not suited to mostly city driving and will end up costing more in maintenance. Stick with petrol, or hybrid if something comes up within budget.

A small estate such as the Skoda Fabia Combi could work well for you. There are plenty within budget, they're reliable and they have huge boots. The only reservation I have is that the rear seating isn't huge, which might be a problem if you have two rear-facing child seats in there. Worth going to take a look at one and making that decision for yourself. The SEAT Ibiza ST (Sports Tourer) is pretty much the same car underneath, incidentally, if you prefer the look of that.

There are VW Golf and Passat estates on the market within budget and with petrol engines as well, and they come with much more rear legroom than the Fabia, but you'd likely have to make do with an older model for under €10,000.

On a completely different tack are cars such as the Nissan Note and Kia Venga, which are more upright than most hatchbacks that take up the same amount of space on the road, to the benefit of interior space. They beat the Fabia for rear legroom, for example, but their boots aren't huge. I wouldn't want to be carrying a travel-system-style buggy as well as anything else. Nonetheless those ones I've mentioned are reliable and within budget.

The Honda Jazz is similar and it's an excellent choice.

Let me know if we're on the right track with this and if you need further help narrowing your search. 

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 John,

First thing to check is the relevant fuses. F13, F16 or F17 are the ones you need to check, though failure of these would usually mean another system failing as well. Still, easy thing to check first.

After that it's a case of looking at the physical wiring.

If in any doubt, bring the car to a good mechanic.

Expert answer

Hi Umair,

We believe it is possible to request a post-clearance correction where an incorrect invoice was used for customs clearance, but it must be done through your customs agent and supported by strong documentary evidence.

You should act quickly, provide the correct invoice, proof of payment and auction hammer price, and submit a written explanation acknowledging the mistake.

Revenue may refund overpaid VAT and duty if satisfied the error was genuine but may also ask for further proof and may indeed refuse.

So go back to the customs agent immediately with all your documentation.