VAT on new car bought in the UK?

PWEI · 10-02-2008 9:12pm #1

Just wondering could somebody advise me please.If one was to buy a brand new
car in the UK and import it to Ireland,after paying the UK VAT on the car would they still have to pay the Irish VAT on top of the VRT.I'm enquiring on behalf of a friend of mine who is thinking of buying a new car in the UK.He already knows how much the VRT is going to cost.Thanks a lot.

astraboy · 10-02-2008 9:53pm

I'm afraid your friend will have to pay the UK and Irish vat. I'm not sure if he can get a refund from the UK vat after the Irish is paid, but this topic came up a while ago and I'm not sure if its possible. If the car is less then 6 months old then you are liable for the Irish VAT weather or not the UK vat has been paid. Seems very unfair and it basically is, there is not supposed to be double taxation in the EU.:mad: So much for free movement of goods eh? I believe SIMI lobbied the government to introduce this to help protect their market and discourace people going to the UK for new cars.

If your friend buys a car over 6 months old he is liable just for the VRT.

mik_da_man · 10-02-2008 10:34pm

So if you were to buy a Sept registered dealer car in UK you would not have to pay vat?

I know some dealers reg the cars and have them sitting around for a few months before they are sold - all with delivery mileage

Mik

astraboy · 10-02-2008 11:18pm

No I think its 6 months from when the car was registered as new in the UK? Though I am open to correction on that.

Invincible · 11-02-2008 12:03am

If you buy a car that is registered in the u.k,you will not have to pay vat on it if it is 6 months old and has a minimum of 6000 miles on the clock.I'm waiting on delivery of a new vehicle in the north,main dealer has given me in writing,that once I register the vehicle in the Republic and pay the vat,on receipt of proof,he will refund me the vat paid to him,his reason being,that people were buying in the north and letting on they were bringing it into the South,thereby evading tax up there.

PWEI · 11-02-2008 3:27pm

Thanks a lot for the info.
If you paid both the UK and Irish VAT on the car,would there be any way of claiming the Irish VAT back?

kluivert · 11-02-2008 4:44pm

Exporting a car from the UK. New car is a car that is less than 3 months old according to DVLA and HMRC.

1. Inform the UK dealer that the car is for export. Uk will be removed from the price.

2. Sign a declaration that you will pay Vat in the country of Import. Dealer sends a copy to DVLA and you get a copy.

3. Sign also sign a export notice or something similiar.

4. Take the V5 reg home with you to present to the VRO.

4. Back in Ireland, if you register the car at the VRO and it is less than 6 months old you must pay VAT and VRT.

VAT is based on the purchase price of the car, they will ask for the invoice from the dealer.

VRT is based on OMSP.

Some people keep the car off the road and parked in a garage till after 6 months and then register it, then no Vat is payable only VRT.

13-11-2009 9:54am

kluivert wrote: »

Exporting a car from the UK...

VAT is based on the purchase price of the car, they will ask for the invoice from the dealer.

Some people keep the car off the road and parked in a garage till after 6 months and then register it, then no Vat is payable only VRT.

Are you sure that is correct i.e. keep car off the road? I thought VAT is applied from date of "supply", which would be when you get it from dealer/seller and in that instance, wouldn't the invoice have the date of actual supply? (unless the dealer/seller does you a favour..)

VAT on new car bought in the UK?

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