OMSP and the collapse of Sterling

Carawaystick

I was thinking with the collapse of Sterling's value, it should be possible to buy a car in britain, pay irish vat and vrt and still be up for at least some new cars.

So for a Subaru legacy diesel estate
irish list price 32795 including Vrt @ 20%
ex vrt, inc vat 26236
VRT = 6559



british price, ex VAT £19375
or 20106 Euros
plus irish vat @21.5% - 24428
plus vrt - 30987.79

Gives a difference of 1800 Euros.

now sterling has rallied in the last few days so my rate may not be valid, but I'd reckon sterling will fall back to what we saw over the new year.

NOW
as we live in a common market, including the whole EU, the revenue ca't only include Irish dealers selling new cars, they have to treat the market as a whole.
This is where the house of cards starts falling.
If I can buy a car for 1800 below the irish price, then the omsp is reduced by 1800 - this then reduces the vrt chargable by 360, which reduces the omsp, which reduces the vrt chargable by 72 euros and so on to some less than a euro figure.

Am I missing something obvious? Is there some get out with buying a car that prevents an open market? like the way vat is charged in the country of residence if you bring in a car less than 6 months old


I just picked the subaru cos back in July I compared the british and irish ex tax price and there were within a tenner at the exchange rate then. I'd say there's cars out there that are much cheaper and cars that aren't.

McSpud

Seems easy to make 20% saving as exchange rate ensures pre tax ROI price 20% move than UK. I think Euro would have to move to 75p sterling for both pre tax prices to match...?

Carawaystick

No, my point is that buying exVat in britain, importing here, paying irish vat and vrt, the cost is less than the irish list price - which I assume is the omsp for vrt purposes.
But if you can buy and pay the taxes on a NEW car for less than the omsp, then the omsp is wrong, and should be reduced, reducing the vrt amount.

If the vrt amount is reduced, then it is even better to buy a car in britain than here, as it will cost less to buy a car abroad then in Ireland, meaning vrt will need to be changed, politically

LoveDucati2

We need to Lobby to get OMSP changed, anyone done this already?

Drummerboy08

I'd say you'd be banging your head off a brick wall trying to get that changed. The government wont change it as it means they will lose a significant portion of income, something which they havent got a whole lot of at the minute.

McSpud

Drummerboy08 wrote: »

I'd say you'd be banging your head off a brick wall trying to get that changed. The government wont change it as it means they will lose a significant portion of income, something which they havent got a whole lot of at the minute.

The only way could get to change is via European Courts as would be contrary to the "free" market regarding import/exports.

alias no.9

The OMSP's of new cars are set by the distributor.

Drummerboy08

AFAIK the OMSP is provided to the VRO by the SIMI. The distributor has nothing to do with it.

LoveDucati2

Its a crazy system, now the almost parity with Euro Sterling shows what a joke it is. The car industry in Ireland is finished. It is cheaper to buy a brand new car in the UK now and pay full VAT and VRT.

My wife has a C3 and we looked at Citroen C4 picasso new, 5,000 euro difference between here and UK last week after all bills paid