Avoiding VRT on Multiple Cars?

MeatProduct

My apologies for posting this as I'm sure it's been dealt with here before but the VRT guide post is over 100 pages long.

I'm moving to Japan and will be coming back after about a year. I'll be buying 3 cars immediately upon my arrival. When I move back to Ireland with these cars how many will I have to pay VRT on?

Many thanks,
Nick

dohc

You will have to pay vrt on them its not buy one get one free!

Anan1

AFAIK, it's one car per person.

Hagar

I thought that if you lived abroad and owned the vehicle for at least 1 year there was no VRT provided you did not sell the car within 1 year of returning to Ireland?

steof1984

Also am i right in thinking if you buy a car outside the E.U you are also hit with V.A.T

might be wrong but i thought i heard it somewhere before

peasant

Your safest bet is to have chat with your local VRT office before you go. Possibly get their reply in writing. 3 cars may be pushing it a bit.

also keep in mind that on an import from Japan there is still tax and duty that you won't be able to wiggle out of, no matter how long you lived there.

BeardyGit

You can import 1 vehicle sans VRT in this scenario. You must have owned it for 12 months minimum before you import it. You can't sell that car within 12 months of importing it without having to pay the VRT that was applicable on date of import, not date of intended sale first.

You can only do the above every 5 years....so you can't live abroad for a year, import a few cars, move overseas again for anothe year, import more cars etc. It's 1 vehicle every 5 years...and you'll own the vehicle in question for a 2 year period in total to avoid paying VRT....12 months abroad and 12 months here.

Hope that's clear enough.

peasant

Gil_Dub wrote: »

You can import 1 vehicle sans VRT in this scenario.

When I moved here 12 years ago I brought in one car and one motorbike (without VRT) without any problems.

BeardyGit

Sorry, 1 car. But not 3 cars. I don't know what the deal is with bikes etc., but I know for a fact that 1 person gets 1 car.

Gil_Dub

Gil_Dub wrote: »

You can import 1 vehicle sans VRT in this scenario. You must have owned it for 12 months minimum before you import it. You can't sell that car within 12 months of importing it without having to pay the VRT that was applicable on date of import, not date of intended sale first.

You can only do the above every 5 years....so you can't live abroad for a year, import a few cars, move overseas again for anothe year, import more cars etc. It's 1 vehicle every 5 years...and you'll own the vehicle in question for a 2 year period in total to avoid paying VRT....12 months abroad and 12 months here.

Hope that's clear enough.

You only have to own the car for 6 months before moving back. Everything else in your post is correct as far as I know.

Del2005

MeatProduct wrote: »

I'm moving to Japan and will be coming back after about a year. I'll be buying 3 cars immediately upon my arrival. When I move back to Ireland with these cars how many will I have to pay VRT on?

Many thanks,
Nick

Have you looked into the buying and owning of cars in Japan? There's a reason why so many high quality 2nd cars are exported. You have to prove that you have parking space available for each and their version of the NCT is very stringent and expensive.

Drummerboy08

Maybe im being too nosey, and it may have nothing whatsoever to do with the topic, but do you mind me asking what exactly you need three cars for??

whippet

Gil_Dub wrote: »

Sorry, 1 car. But not 3 cars. I don't know what the deal is with bikes etc., but I know for a fact that 1 person gets 1 car.

rubbish.

My advise to the OP is not to look for proper advise here regarding VRT as I have seen so many urban myths classified as fact.

You can bring as many cars as you like, but each and every one must fulfill the requirments of the VRT office. I know as my wife brought two cars home when she returned to ireland a few years back.

I called the VRT office myself to check and when I asked how many cars an individual could take back with out paying VRT I was told 'As many as you own as long as you comply with the requirments'

You have to be properly resident in the country you are importing from (working, paying tax etc - not studying this is explicitly exempted) for at least 12 months and the car must have been owned by yourself for 6months prior to transferring residence back to ireland.

You then will not be able to sell the car/cars on for 12 months unless the VRT is subsequently paid.

MeatProduct

Thank you all very much for your comments.

I've been onto the Revenue and they said it's no problem with 2 cars but that seemed to be the limit, she was very slow to talk about more cars so I am not 100% if it is really limited to 2. This suits me fine as the 3rd car I'd be getting will be electric anyway and there'll be feck all to pay on that.

She said as long as each car meets the requirements then I am fine. From reading the various VRT documents I have to be resident for at least 185 days of the year at the country of residence (Japan in this case) and have owned the vehicle to a minimum of 6 months with documentation to prove it all.

Regarding the cost of owning a car in Japan I am very aware of the implications. I have done all the research before considering any of this. My cars won't be kept anywhere near any of the major cities and the cars I'll be getting will each have recent NCTs (Jap equivalent of). There is a purchase tax also to be paid.

I've got my heart set on picking up a 2008 GT-R over there but will be getting a 350 Z right away.

DrummerBoy, the reason for 3 cars is cause I like cars and since they are so insanely cheap there well why the hell not?

Thanks!

Nick

Drummerboy08

MeatProduct wrote: »

DrummerBoy, the reason for 3 cars is cause I like cars and since they are so insanely cheap there well why the hell not?

Good enough for me....:D

MeatProduct

MeatProduct wrote: »

I've got my heart set on picking up a 2008 GT-R over there but will be getting a 350 Z right away.

Nick

Fair play! The 350 Z is a nice motor but the GT-R is an epic car, I'm well jealous now. Best of luck and hope you manage to get them cleared for free you must be looking at saving at least 30 or 40k in VRT between the 2 cars considering the VRT on a 2008 GT-R is 42K at the moment.

cojomo2

MeatProduct wrote: »

Thank you all very much for your comments.

I've been onto the Revenue and they said it's no problem with 2 cars but that seemed to be the limit, she was very slow to talk about more cars so I am not 100% if it is really limited to 2. This suits me fine as the 3rd car I'd be getting will be electric anyway and there'll be feck all to pay on that.

She said as long as each car meets the requirements then I am fine. From reading the various VRT documents I have to be resident for at least 185 days of the year at the country of residence (Japan in this case) and have owned the vehicle to a minimum of 6 months with documentation to prove it all.

Regarding the cost of owning a car in Japan I am very aware of the implications. I have done all the research before considering any of this. My cars won't be kept anywhere near any of the major cities and the cars I'll be getting will each have recent NCTs (Jap equivalent of). There is a purchase tax also to be paid.

I've got my heart set on picking up a 2008 GT-R over there but will be getting a 350 Z right away.

DrummerBoy, the reason for 3 cars is cause I like cars and since they are so insanely cheap there well why the hell not?

Thanks!

Nick

if u buy a brand new 350z there and bring it home 6 months later, what is the total landed cost ? i.e the cost of the car there in japan plus shipping costs and and vat/duty etc?

also are u goin to Japan for work or are u specefically going there to get any job, work for a bit and bring home the cars vrt free?

you are giving me ideas now!

MeatProduct

Westley Deafening Sculptor wrote: »

Fair play! The 350 Z is a nice motor but the GT-R is an epic car, I'm well jealous now. Best of luck and hope you manage to get them cleared for free you must be looking at saving at least 30 or 40k in VRT between the 2 cars considering the VRT on a 2008 GT-R is 42K at the moment.

I will have to see how my finances will be set, right now I couldn't manage both cars when I arrive. I've booked a test drive on a 2008 GT-R for the day after I arrive. 6000 km on it for €42,000.

MeatProduct

cojomo2 wrote: »

if u buy a brand new 350z there and bring it home 6 months later, what is the total landed cost ? i.e the cost of the car there in japan plus shipping costs and and vat/duty etc?

also are u goin to Japan for work or are u specefically going there to get any job, work for a bit and bring home the cars vrt free?

you are giving me ideas now!

Hi Cojomo,
I'm not gonna get the 350Z new. Looking at a 2004, it's got 23000 km on the clock with minor panel damage on the rear left panel. It's going for €6200. It already has been recently tested so no cost there. I'll be charged for the change of ownership to register it in my name.

It's recommend to only buy from dealers over there, way less paperwork and you get a warranty too and usually a better deal. Car prices there vary by locality also, so buying in a rural garage is often cheaper.

When you buy a car in Japan, you must pay various fees. In addition to taxes, you must pay for insurance and a mandatory inspection (called "Sha'ken", like the NCT, done every 2 years). You should get additional insurance to adequately cover your liability in case of an accident. A dealer can handle all of this shoite for you.

I am not sure if VAT will have to be paid upon arrival of the car into Japan. This is one area that is not clear as I initially assumed I did not need to pay any VAT as the car is being brouth into the country as a change of residence, like the VRT.

I'm primarily going there to train with some hot shot Tai Chi (Chen Style) teachers so I can improve my skill. Next reason is because I am fascinated with Japan and finally because I can make money there by teaching business english and tai chi. You can easily go there if you have a degree (in anything) and a willingness to teach english, plenty of jobs available for would be teachers. Just take a TEFL course before you go. PM me if you want to know more.

Nick

MeatProduct

Here's some info I got off a website:

When you buy a car, you'll have three main taxes to pay. One is an Acquisition Tax, another is a Weight Tax, and the third is an Annual Tax every May. The first two you pay when you buy the car. Basically, the bigger the engine, the more you pay. The Acquisition Tax is around 5% of the price of the car. The weight tax for cars with engine sizes up to 2 litres are about 56,700 yen, greater than that is 75,600. Passenger cars with a 300 something or 33 in the upper right corner of the license plate (including nearly all US cars) are the highest. A 50-something on the license plate indicates a medium-size car, and the "Kei" cars with an engine of 660cc have a yellow plate and are lowest. The May annual tax for Kei cars is the lowest as well at about 5000-yen, but for larger cars the tax quickly escalates to 34,500-39,500 yen for medium cars to 45,000 yen for 2.5 litre cars and 56,000 yen for 3 litre cars. You also need to pay consumption tax when you buy fuel, and many petrol stations don't display their prices. Prices can vary and may be up to 15 yen/ltr. cheaper at some stations, a big difference.

ardmacha

If you are going to Japan for "about a year" and your family ties are here the Revenue will probably take the view that your normal residence has not been transferred to Japan, but remains in Ireland, so no VRT freee import. You'd need to show that you had intended to substantially move to Japan, temporary jobs etc will be regarded as a prolonged holiday rather than a move.

MeatProduct

ardmacha wrote: »

If you are going to Japan for "about a year" and your family ties are here the Revenue will probably take the view that your normal residence has not been transferred to Japan, but remains in Ireland, so no VRT freee import. You'd need to show that you had intended to substantially move to Japan, temporary jobs etc will be regarded as a prolonged holiday rather than a move.

Thanks for that. It will be fine as I'm heading off to China for 2 years after my time in Japan so I should be fine.

DanGerMus

MeatProduct wrote: »

Thanks for that. It will be fine as I'm heading off to China for 2 years after my time in Japan so I should be fine.

Surely by the time you return there will have been enough depreciation to wipe out a chunk of your savings after three years, unless i have the wrong end of the stick now or you've already factored it in.

MeatProduct

DanGerMus wrote: »

Surely by the time you return there will have been enough depreciation to wipe out a chunk of your savings after three years, unless i have the wrong end of the stick now or you've already factored it in.

Fair point Dan. I reckon by then the ecomomy in Ireland will be back in action anyway so I wouldn't be losing out too much. Not really doing it as an investment though.

Nick

ardmacha

It will be fine as I'm heading off to China for 2 years after my time in Japan so I should be fine.

Not really, if you leave Ireland and spend several years abroad in different places your normal residence is still Ireland as you didn't put down roots elsewhere. If you are claiming a move from China to Ireland then the vehicles will have had to be registered in China for one year, god knows what that involves.

What you could do being in Japan is identify a really good value car and send it Ireland and pay the taxes etc. You'd still know what you were getting and would have a reasonable deal.

GalwayShawl

Any truth in the rumour that if you have a Northern Ireland address for a while, you can skip the VRT payment. I heard of people who have rented a cheap room in Derry straight out of daft just to get an address up there?