VRT and VAT on UK car Import

Neroaccess

Folks,

Does anyone have any experience on importing a car less than 6 months old from the UK? There are VAT implications but it seems not to be listed anywhere how ths is calculated etc.. Also you can get a rebate from the UK authoroties - how easy is this etc..

I have imported several cars from the UK and there is a bunch of money to be saved but now looking at importing a nearly new car! The last time I did this I imported the car when it was 6 months and a day old and then had no VAT implications but now I'd like to get a 2012 car.

Also the VRT rules look like they are going to change on cars less than 3 months old so this should help also.

BMW 520d 2012 Efficient Dynamics (119 grams CO2 so 14% VRT) is ~£27.5 in the UK with discounts available from dealers so at exchange rate of 1.2 = €33,000 and I estimate the VRT to be about €5,600 so total imported price =€38,600 and the car is €43+k here. No brainer in my opinion - I am keeping the car for 3 to 4 years so I am not worried about being the second owner on a car that is 2 months old! In 4 years time I'll have the paperwork to prove I bought a new car from a dealer with delivery mileage but registered to the dealer before I imported it.

I just need to find out about the VAT implications. I have to pay VAT here if less than 6 months old but I can claim back the VAT from the UK authorities? How is VAT calculated here? Is it a case that I pay here at 23% and reclaim from the UK at 21% - a difference but is it based on the price I paid in the UK or the open market price here?

Help please?

Cheers,
Neroaccess

Padraig Mor

You do not need to pay VAT in the UK - just fill out form VAT 411. Some dealers are not familiar with the process and may regard it as 'dodgy' (it's not) and refuse to do it. In that case you can reclaim the UK VAT after paying the Irish VAT (although I'd strongly suggest the former route!). The Irish VAT is calculated on the VAT-exclusive price you paid in the UK at the normal rate. The £ stg is converted to € at an 'official' rate, set monthly - although I'm damned if I can remember a link to it. (It is a fair rate AFAIK - and with the exchange rate the way it's going, the sooner you do it, the better).

mickdw

VAT here will be charged at irish VAT rate on the invoice price paid in uk (less any uk vat paid), converted to € obviously.

If buying a car that there will be a VAT charge on here, you shouldnt need to pay the uk vat at all when its bought for direct export. UK VAT form 401 or 411 I think is for this purpose. Alot of dealers dont want to do this for whatever reason but the form is pretty clear and a quick call to uk revenue will usually sort it out.
I think from memory that form related to export of a new means of transport. If buying under 6 months etc, its classed as a new means of transport.
I would question the dealer on this before making any deals. Perhaps best to deal with a dealer who is very familiar with selling nearly new cars to Ireland.
Btw, this all applies to private EU residents Its nothing to do with being VAT regd or not.

Edit: As padraig mor says. didnt see his response

Neroaccess

Thanks lads, this makes sense.

Most dealers in the UK are happy to deal with the Irish on stuff like this. I have called a few dealers in the last few months about different cars and on tw ocassions the car had already been sold to an Irish customer - just goes to show that everyone is at it now!

At least I now the procedure now. It's still worth doing it at current exchange rate.

Padraig Mor

BTW do I remember something from last year re BMW UK dealers refusing to sell new/nearly new cars to Irish customers?!

robbie99

Not sure about refusing to sell to Irish customers but there was something (in 2008 at least) about them having to hold onto their demo cars until they were registered for at least 3 months old.

The Vat 411 form is here along with some other helpful links

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=1x1lPuz_l5E&formid=1011

mickdw

Are you comparing new price here versus the used price in the uk. I think they are 43.5k here new. Im sure there are deals to be had on very slightly used ones here too.

Neroaccess

Thanks for that info - I had heard that in the past but the dealers did not care once they got their sale!

Just looked and VAT in Ireland is 23% and 17.5% (did not realise so low on cars) in the UK so it looks like this is not going to be feasible - will have to wait to buy a 6 month old demo!

Rip off Ireland!

Same car just €10k of a difference between here and the UK.

Neroaccess

The dealers here do not discount enough and we do not have a big enough market for demo's to be a factor in the price. In the UK the list price is £30+ but you can get a new car registered in your name with a discount of ~10% through Broadspeed. It's the same for any car - excepts something very new with high demand (e.g. A6 Avant - only out 4 months).

Have you ever seen a dealer here give a 10% discount on a car!?!?!?

Here a 2011 car is offered at a 10% discount despite it being a 12 month old car!

mickdw

You would be a fool to pay 90% retail for last years car though. I dont think they are getting anywhere near that tbh. Asking is one thing, getting is another.

No doubt, buying a 6 month old is more straight forward all round. Dont forget, the nice vrt people will screw you on extras if they can so that needs to be factored into your calcs too.
I dont see where the 10k difference is though.

-Corkie-

Are you registered for vat op??

chino38

Hi,

Just reading this interesting post. Does anyone know of a reputable Irish importer that will source Mercedes in UK and do all the necessary paperwork/importing etc. The banks are hesitant about giving finance for cars bought directly in UK so was hoping to get one thru Irish dealer that bank would deal directly with