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Another VAT/VRT scenario

  • 06-11-2007 4:37pm
    #1
    Joeyjoejoe Jnr
    Closed Accounts Posts: 21 ✭


    When someone goes to buy a brand new car in Ireland the price is made up of the cost of the car plus VRT plus Vat on the cost plus Vrt amount.

    Now if I go into the garage and say I want to buy that bugatti veyron over there and the guy in the garage says ok sir, that will be €1,960,200 made up of the car which is €1,200,000 plus vrt of €420,000 and I have to charge vat on all of that at 21% which is €340,200.

    So I say, ah no you're grand, I will take care of the VRT tomorrow myself when i'm in Tullamore, just give me the documents and I will pick up the car in a few days. So he says no bother, can I get a cheque for €1,452,000 which is the cost plus vat at 21% (€1,200,000 + €252,000).

    So I end up paying €1,872,000 for the car instead of €1,960,200.

    Now I know I have used an extreme example with the Bugatti but it should work with any car but on a smaller scale.

    Can this be done?


Comments

  • #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,861 Mod ✭✭✭✭Henry Ford III


    No.


  • #3
    Joeyjoejoe Jnr
    Closed Accounts Posts: 21 ✭Joeyjoejoe Jnr


    Why not?


  • #4
    alias no.9
    Registered Users, Registered Users 2 Posts: 6,352 ✭✭✭alias no.9


    VRT is charged as a % of the retail price. VAT is charged as a % of the pre tax price.i.e.
    Pre Tax Price -> €100,000
    VAT @21% ---> €21,000
    VAT Inclusive->€121,000
    VRT @42.9% -> €51909 (30% of the selling price is 42.9% of the price excluding VRT)
    Retail Price --->€172,909


  • #5
    Tipsy Mac
    Closed Accounts Posts: 2,559 ✭✭✭Tipsy Mac


    Joeyjoejoe Jnr wrote: »
    Why not?

    Because citizens of Ireland don't have the rights they signed up for when we voted to enter the EU.


  • #6
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,861 Mod ✭✭✭✭Henry Ford III


    Dealer is responsible for collection and paymnent of VAT/VRT. Simple.


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  • #7
    Seth Brundle
    Moderators, Politics Moderators Posts: 41,246 Mod ✭✭✭✭Seth Brundle


    Unless the car is not going to be used on Irish roads (and therefore not registered).


  • #8
    Del2005
    Registered Users, Registered Users 2 Posts: 19,102 ✭✭✭✭Del2005


    kbannon wrote: »
    Unless the car is not going to be used on Irish roads (and therefore not registered).

    Was there not a thread here recently saying that once a car is in this country it has to be VRT'ed? And you only get away without road tax if off the road

    Edit -:
    Found thread

    http://www.boards.ie/vbulletin/showthread.php?t=2055159524&highlight=vrt

    and from revenue website
    When must I Register?
    If you bring a vehicle into Ireland from abroad you must register it and pay VRT by the end of the next working day following its arrival in the State.
    http://www.revenue.ie/index.htm?/leaflets/vrt1.htm


  • #9
    Seth Brundle
    Moderators, Politics Moderators Posts: 41,246 Mod ✭✭✭✭Seth Brundle


    If the car is going to be used on private property only (e.g. for racing) then revenue don't need to get their dirty mitts on it!


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