Expert answer

Hi Paul,

Generally it’s only commercial vehicles that qualify for reclaiming VAT, but to be honest, it’s not the car, it’s you — whether or not you can claim back VAT on any car will depend on whether or not you’re registered for VAT. Talk to your accountant is our best advice.

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Hi Andreas,

If the car is three years old, and thanks to Cyprus being in the EU, you won't have to pay VAT when you import the car, as that's only payable on cars up to six months old. You will need to pay Vehicle Registration Tax (VRT) though, and you'll have just a week from the car's arrival here to inform the Revenue Commissioners of it being here and a month to organise an inspection and pay the charge. If you're trying to reclaim VAT originally paid on the car, then you'll need to get yourself a good accountant as it's a complex process and will depend on whether or not the car is registered as a commercial vehicle. 

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Hi Conor,

The critical thing is to get the car history checked by a service such as Cartell.ie. Buying from a private buyer obviously leaves you without comeback in the event of mechanical issues, but you could consider an aftermarket warranty. It's the history that's the important bit. If there's anything of concern or if there is outstanding finance payments, walk away. Plenty more out there. 

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Hi Richard,

We asked Eddie Coleman of Conlan Crotty Murray & Company Chartered Accountants for some help on this one and here was his response:

"For a self-employed VAT-registered sole trader the most tax efficient vehicle to purchase for business use would be a small commercial van/SUV.  As the private use element of the vehicle is likely to be minimal VAT could be recovered on such a vehicle in the proportion that business use bears to the total usage of the vehicle.  As there should be a high business usage of the vehicle most of the running costs of the vehicle, such as insurance, fuel, maintenance, etc. could be expensed for tax purposes, again in the proportion that business usage bears to overall use of the vehicle.

If an individual decides that a small commercial vehicle is not appropriate and decides to purchase a car then there would be very limited tax deductibility for VAT purposes.  If a car falling into Category A, B or C is acquired, then 20 per cent of the VAT paid on purchase of the vehicle could be recovered where at least 60 per cent or more of the usage of the car is for business purposes.  There is a potential claw back of the VAT recovered if the car is sold within two years of acquisition.

If the car is acquired by way of a hire purchase agreement or loan finance then the vehicle is treated as owned by the individual.  The capital cost in those instances can be claimed by way of an annual capital allowance write-off equivalent to 12.5 per cent of the cost of the vehicle, restricted to business use as a proportion of overall use of the vehicle.  If a new vehicle is being acquired then it may be possible to do so by way of a finance lease.  In such circumstances it may be possible to write-off the capital cost of the vehicle over a shorter time frame, again subject to business use restriction on the allowable tax deduction."

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Hi Ebere,

You’ll need two crucial documents. You’ll need the V5C form, which is the vehicle’s identity papers (it’s the red, pink and blue form with the car’s reg number, VIN number etc.) and you’ll need an invoice showing the date and location of sale and the amount paid for the car.

Other than that, you’ll need the usual proof of identity for yourself (passport or driver's licence, utility bill with your home address etc.).

I’d suggest you have a good careful read of two pages before you start out:

1 - from www.citizensinformation.ie

2 - from www.revenue.ie

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Hi Mike,

Expert answer

Hi Conor,

The two best SUVs of similar elevation to the Freelander would be the Honda CR-V and the Nissan X-Trail. Both are excellent choices (and the X-Trail can be had with seven seats), but the Honda’s more spirited driving experience nudges it for us. Also worth looking at a Land Rover Discovery Sport (effectively the third-generation Freelander), although they’re pricier than the Honda or Nissan.

As for choosing a buying time, yes, if you wait until the end of January, depending on how new car sales go, there should be a few more trade-ins and the like cluttering up dealer lots so you might get a sharper deal. Any of the big car rental companies will set you up with a good deal on a long-term rent, and Enterprise is probably the best place to start.

Here are a few of our reviews to help you choose:

Honda CR-V review

Nissan X-Trail review

Land Rover Discovery Sport review

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Hi Jim,

You don’t reclaim the UK VAT if you’re exporting a brand new car to Ireland, you simply don’t pay it in the first place. According to HMRC, you won’t be liable for UK VAT on your purchase if you take it out of the UK within two months of buying and don’t drive the vehicle in the UK unless you register and tax it. You’ll also have to fill out a VAT 411 form.

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Hi David,

No, you would only have to pay VAT if the car were younger than six months old or had mileage of less than 6,000km. You will need to show that VAT has been paid when the car was originally purchased in the UK though.

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Hi Deirdre,

Prices for a 2007 Mondeo seem to hover at around the €5,000 mark, so as a trade-in you’re only likely to get offered €3,500 or so – dealers have to allow for some profit margin and expense when it comes to valuing cars.

If you’re going to sell privately, I'd pitch the price at around the €4,500 mark and see how you go.