VRT & Free Movement of Goods

Kelso

How do the government get away with charging VRT on cars imported from other EU Member States? Surely it would seem to contravene the free movement of goods provisions but I'm sure the government must have some loophole

Guy:Incognito

Doesn't stop you moving anything, you can bring 100 cars into the country and not pay vrt if you want. It's only using them on public roads you have to register them for.

Duiske

Kelso wrote: »

but I'm sure the government must have some loophole

Your quite free to bring a car in from another E.C. state, without having to pay an import tax. Thats the free movement part covered.

However, the government are entitled to charge a registration tax, or any other tax, without interference from the E.U. if they wish. Thats the loophole, if it can be called that.

Kelso

Makes sense I guess. Kind of makes the EU provisions pointless though if you can't use it for it's proper purpose.
I would have thought if a case was taken on these grounds there may be some chance of success but from d replies I guess not

craichoe

Kelso wrote: »

Makes sense I guess. Kind of makes the EU provisions pointless though if you can't use it for it's proper purpose.
I would have thought if a case was taken on these grounds there may be some chance of success but from d replies I guess not

And its not just Ireland doing it, The Netherlands also has a registration tax called BPM, usually costs about 30% of the Open Market selling price.

Alun

craichoe wrote: »

And its not just Ireland doing it, The Netherlands also has a registration tax called BPM, usually costs about 30% of the Open Market selling price.

And Denmark has something similar too. It's very, very high for high-end stuff as well, something approaching 100% IIRC.

When I lived in Germany a Danish colleague of mine made a small fortune exploiting a loophole in the law at the time buying second-hand Porsche 944's, I think, in Germany, converting them to "vans" by removing the rear seats and blacking out the windows, importing them into Denmark paying less tax, and then converting them straight back on the other side and selling them on. The loophole only existed for a few weeks, but he made enough money to buy himself a new 928S!

Stephen

Sounds much like the cowboys here bringing in "commercial" X5's and then converting them back.

mikemac

Stephen wrote: »

Sounds much like the cowboys here bringing in "commercial" X5's and then converting them back.

Customs are all over that one

crocro

Various VRT cases have been taken to Europe and failed.

http://www.europarl.europa.eu/meetdocs/2004_2009/documents/cm/536/536456/536456en.pdf

Dirty_Diesel

Stekelly wrote: »

Doesn't stop you moving anything, you can bring 100 cars into the country and not pay vrt if you want. It's only using them on public roads you have to register them for.

Not true, you can only keep non-VRT'd vehicles if you are a dealer and have a TAN number.

Guy:Incognito

Dirty_Diesel wrote: »

Not true, you can only keep non-VRT'd vehicles if you are a dealer and have a TAN number.

Theres plenty of people in the country with non registered race cars.

Seth Brundle

Race cars are (supposedly) not driven on the public roads and therefore not subject to VRT!

Guy:Incognito

kbannon wrote: »

Race cars are (supposedly) not driven on the public roads and therefore not subject to VRT!

I no, same principal as bringing in a car and keeping it on private land. cmon kbannon, read the thread and keep up.