Exporting a car from Australia, importing to Ireland

digiman

I'm moving back to Ireland (unplanned) and now I have the option of either selling my 3 month old BMW 328i or shipping it back to Ireland. Has anyone shipped one back before?

I called a shipping company at was told that I would have to pay 10% duty on cost of car + shipping and then 23% VAT on cost of car + shipping + 10% duty. Not only this but then would have to pay the VRT which I think would be around 23% of the cost of the vehicle.

Car price at home is around 55-60k euros new but cost here was around 10% cheaper than that. If I owned the car for 6 months in Australia I believe I would be exempt for all that but I will be going home just before this and obviously if I have to pay all those taxes then it is not worth it at all. Is it possible to claim the tax paid in Australia back when it is exported I wonder?

I was thinking if I flew back to Australia for a week just after the 6 months and then shipped the car home it may make me exempt for the taxes and make it worth the trip over as return flights can be got for around 1k Euro.

Besides if all this worked out are there any other downsides/pitfalls to doing this? Car is a BMW to there is plenty of support in Europe obviously for this car so servicing etc shouldn't be a problem compared against a Holden or Jap car which is not sold in Ireland.

keithclancy

digiman wrote: »

I'm moving back to Ireland (unplanned) and now I have the option of either selling my 3 month old BMW 328i or shipping it back to Ireland. Has anyone shipped one back before?

I called a shipping company at was told that I would have to pay 10% duty on cost of car + shipping and then 23% VAT on cost of car + shipping + 10% duty. Not only this but then would have to pay the VRT which I think would be around 23% of the cost of the vehicle.

Car price at home is around 55-60k euros new but cost here was around 10% cheaper than that. If I owned the car for 6 months in Australia I believe I would be exempt for all that but I will be going home just before this and obviously if I have to pay all those taxes then it is not worth it at all. Is it possible to claim the tax paid in Australia back when it is exported I wonder?

I was thinking if I flew back to Australia for a week just after the 6 months and then shipped the car home it may make me exempt for the taxes and make it worth the trip over as return flights can be got for around 1k Euro.

Besides if all this worked out are there any other downsides/pitfalls to doing this? Car is a BMW to there is plenty of support in Europe obviously for this car so servicing etc shouldn't be a problem compared against a Holden or Jap car which is not sold in Ireland.

6 month rule only applies within the EU to satisfy the free movement directive.

Outside EU there is no 6 month rule.

mullingar

Yes, There is a VRT exemption clause. The conditions are that you must have owned and used the car for at least 6 months and you cannot sell it for at last 12 months after. You have to prove with documents that you have lived abroad for that same period with all sorts of bank/bill/visa statements

VAT will apply. The only exception to VAT is an EU sourced car, but it has to be older than 6 months/10,000km.

ironclaw

Unless its a fantastically high spec model with good resale value here, I can't see how this would be viable economically or from a personal time perspective. Assuming everything equal, and you can get it into the country, like you said, for 10% less than the retail price here (So €6k less) your talking €5 to €6k of a saving on buying the same car here. Retail versus actual sale price can differ, so assume you can get €1000 off the forecourt price here. Your down to €5k of a saving. That's less than the depreciation will cost you as it sits in the container on the way here.

By the time you pay for VRT, shipping and go through the hassle of paperwork, waiting for it etc, I can't see it being worth it for a 318. And I mean that from a purely economical standpoint, not a bias against the make etc.

If it was me, I'd import a classic or something you just can't get here.

cadaliac

ironclaw wrote: »

Unless its a fantastically high spec model with good resale value here, I can't see how this would be viable economically or from a personal time perspective. Assuming everything equal, and you can get it into the country, like you said, for 10% less than the retail price here (So €6k less) your talking €5 to €6k of a saving on buying the same car here. Retail versus actual sale price can differ, so assume you can get €1000 off the forecourt price here. Your down to €5k of a saving. That's less than the depreciation will cost you as it sits in the container on the way here.

By the time you pay for VRT, shipping and go through the hassle of paperwork, waiting for it etc, I can't see it being worth it for a 318. And I mean that from a purely economical standpoint, not a bias against the make etc.

If it was me, I'd import a classic or something you just can't get here.

328, not 318.
I aggree though, not really worth it unless there is a significant saving, not just breaking even.

digiman

cadaliac wrote: »

328, not 318.
I aggree though, not really worth it unless there is a significant saving, not just breaking even.

I guess the problem is, if I sell the car in Australia I will lose somewhere between $10-$20k or 7-14k euros depending on how much I can sell the car for. I rang the dealer and they offered me $25k less than I paid for it ($77k). If I say got $65k selling privately which I would be very happy with I would sell as many people say it wouldn't really be worth the hassle but $65k is only 45k euro and I don't think that would buy me a similar car at home as the car is very well spec'ed and has options as standard that you have to pay to add here.

Basically it comes down to if I have to pay tax, vat and vrt. I still don't find it very clear if I have to pay this or not even if I owned the car for 6months here.

digiman

mullingar wrote: »

Yes, There is a VRT exemption clause. The conditions are that you must have owned and used the car for at least 6 months and you cannot sell it for at last 12 months after. You have to prove with documents that you have lived abroad for that same period with all sorts of bank/bill/visa statements

VAT will apply. The only exception to VAT is an EU sourced car, but it has to be older than 6 months/10,000km.

So I would be ok with waiting 6 months before I ship it back but the last 2 months of those I would probably be resident in Ireland so it's not clear if that breaks down that option. I would have already paid tax and would be keeping the insurance on it. Car has only 6km on it currently if that makes any difference.

ceekay74

digiman wrote: »

So I would be ok with waiting 6 months before I ship it back but the last 2 months of those I would probably be resident in Ireland so it's not clear if that breaks down that option. I would have already paid tax and would be keeping the insurance on it. Car has only 6km on it currently if that makes any difference.

You must of had possession & use of the vehicle for at least 12 months to qualify for exemption from VRT. You will also have to prove that you were living in Australia for the full 12 months.

I think it's the Customs House in Dublin that deal with this, give them a ring for clarification.

ceekay74

OSI wrote: »

When looking for the exemption they will look for proof that you were resident for the full 6 months.

12 months if coming from outside EU.

veetwin

It looks like from this that you must have owned and used the car abroad for 6 months.

http://www.revenue.ie/en/tax/vrt/leaflets/tax-relief-transfer-residence.html

If at all possible you should consider trying to extend your stay to satisfy the 6 month rule. If you have to pay the vrt and other taxes you would be as well to take the hit and sell over there. Also bear in mind the market for a used Australian imported 328i in Ireland will be fairly limited.

digiman

Just having a read through the document there is an extenuating circumstance part:

2.1.1.5 Extenuating Circumstances
Circumstances can arise where a transfer of residence is forced on an individual at a time
when his/her vehicle will not have been in his/her possession and use for the required 6 month
period5
. TOR relief in such cases may be allowed where evidence is available that a transfer
of residence could not have been foreseen by the applicant when the vehicle was acquired. In
such cases, the following guidelines should be observed:
 relief may only be allowed by the local District Manager;
 the bona fides of the transfer of residence should be clearly established;
 the applicant should provide conclusive evidence that the transfer could not have been
foreseen at the time the vehicle was acquired, or that the acquisition of the vehicle was as a
result of force majeure. Some typical examples of this include:
 an unexpected offer of employment - the emphasis here should be placed on the I should qualify under this
unexpected nature of the offer, e.g. if negotiations for the position were underway
at the time the vehicle was acquired or an application for promotion was made,
the application should be refused;
 loss of employment abroad;
 deterioration in health;
 family bereavement;
5 Tax/duty-free vehicles, where the possession and use requirement is 12 months, as distinct from 6 months, are not included in this arrangement.Revenue Operational Manual VRT Section 2
12
Vehicle Registration Tax
 change of vehicle forced on an applicant because the original qualifying vehicle
was crashed/stolen (and not recovered);
 other special circumstances including clearly justified cases arising from political
upheaval in the country of former residence.
However, the vehicle should have been in the possession and use of the applicant for at least
3 months, except in cases of hardship such as the replacement of a crashed/stolen vehicle.
Relief in the case of extenuating circumstances is permitted in order to give effect to the
discretion available to the Commissioners under the care and management provisions in
Finance legislation. Where enquiries regarding the transfer of residence provisions are
received, the information to be given is that set out in the legislation and in the public
information leaflet.
In dealing with applications, district managers may take other considerations into account, as
appropriate, e.g. the length of time a person has spent abroad, the extent of upgrading of the
replacement vehicle etc, where considered relevant.
Appropriate documentation confirming the “exceptional circumstances” should be sought
from the applicant.
Cases received/allowed under these provisions should be recorded.
To ensure uniform and consistent application of this procedure, applications and supporting
documents are to be forwarded to the Regional Office for review following registration of the
vehicle

I would have quite a lot of evidence here to support this claim, I applied for Australian PR and was granted this one month before I got the car. This cost me $7k and wouldn't have applied for that otherwise. I am getting married in April this year and had return flights booked to Sydney for beginning of May. I also tok out a 12 month lease on an apartment in Sydney just last November also so I definitely didn't plan on heading back to Ireland early.

I will need to try and contact the district manager and speak to him about this. I don't want to ship it home and discover its going to cost me 20k euros to pay so would somehow need to have it approved in writing before hand.

digiman

OSI wrote: »

Also, without wanting to pry, did you buy the car on finance? If you did, you may want to check the contract terms, I'd be very surprised if they would be happy to see you ship cross globe.

I did, already thought of this and would be happy to clear it if I am able to ship it home without paying the taxes.

Panrich

$25K is serious depreciation in a few months.

Sheldons Brain

The OP hasn't said how long he has been in Australia, as the length of time a person has spent abroad is one of the factors. If he has only been there a year or so, I'd say there is no chance. If he has been there 5 years, then perhaps.

foambullets

op I imported my car from Australia to Ireland last year. For those that may not know the second hand car market in Australia is rubbish, flooded with cheap affordable new cars on fantastic finance rates. I advertised my car for sale for 4 months and it was over $7000 Aud cheaper then the nearest car of the same model/spec on carsales, gumtree etc and didn't sell. So I bit the bullet and brought it over. The paper work is straight forward with revenue and vrt. The key is to just be patient as the process takes awhile. 9 weeks shipping, a few days clearance through customs, waiting a week for letter of exemption from revenue, booking vrt, waiting another week for another letter from revenue to value the car/vrt, back to vrt for registration number and finally getting insurance so you can pay the road tax (typically they screw you and back date the road tax from the initial vrt visit).

digiman

foambullets wrote: »

op I imported my car from Australia to Ireland last year. For those that may not know the second hand car market in Australia is rubbish, flooded with cheap affordable new cars on fantastic finance rates. I advertised my car for sale for 4 months and it was over $7000 Aud cheaper then the nearest car of the same model/spec on carsales, gumtree etc and didn't sell. So I bit the bullet and brought it over. The paper work is straight forward with revenue and vrt. The key is to just be patient as the process takes awhile. 9 weeks shipping, a few days clearance through customs, waiting a week for letter of exemption from revenue, booking vrt, waiting another week for another letter from revenue to value the car/vrt, back to vrt for registration number and finally getting insurance so you can pay the road tax (typically they screw you and back date the road tax from the initial vrt visit).

Hi there, who did you ship the car with? What type of car did you ship and did you take out the insurance on it? Insurance seems to be around 1.5-2.5% of car value. Did you use a container or a rollon/rolloff service? Any thoughts on the difference in these?

foambullets

"who did you ship the car with?" I shipped the car with chess moving, they weren't the cheapest but they seemed the most professional and no hidden charges like others. I can recommend using them as everything went ok with my shipping. The manager even gave me a lift to the train station in his Maserati after dropping of the car at their depo which was great.

"What type of car did you ship and did you take out the insurance on it?" Fpv gt and I did take the shipping insurance. There are a few different types of insurance so read the fine print. i.e. some only cover total loss whilst others cover damage with or without excess.

"Did you use a container or a rollon/rolloff service?" I used a sole use 20ft container.

"Any thoughts on the difference in these?" I personally felt more comfortable with using the sealed container as opposed roro.

digiman

Just thought I would pop back in to say that my car arrived about 2 weeks ago and driving it on Irish plates now. I qualified for an exemption thankfully which I had provisional acceptance before I left Sydney. Thanks all who contributed

mickdw

Well I'd say a 2014 328i is a one off in this country.
Any info on how things went.

ironclaw

digiman wrote: »

Just thought I would pop back in to say that my car arrived about 2 weeks ago and driving it on Irish plates now. I qualified for an exemption thankfully which I had provisional acceptance before I left Sydney. Thanks all who contributed

Financially, how did it tally? Just curious.

Low Energy Eng

I'd also be interested in a breakdown of costs please, I'm in Oz myself and might consider this.

CoCoMam

Hi. Some help needed here please! We are looking at a second hand 4x4 which was imported into Ireland by it's previous owners. It's a 2014 reg. How did you get on with your import into here? I saw on another board that the fuel pump on all Australian cars are configured differently for the reverse whirlpool effect you get when you go that far south of the equator (whatever that means I have no idea). The author said they wouldn't recommend importing car from southern hemisphere for this reason and also there maybe legal issues due to 'splashback' (whatever that is - again Google couldn't help me out here).

Did you have any issues in servicing, catalytic convertor or fuel consumption issues with your import? Sorry for all the questions but don't want to go buy this vehicle (which is like hen's teeth to find in Ireland by the way) for hefty sum and then have issues after.

If anyone has any knowledge on this I would gratefully hear it.

Thanks

Kenny Logins

CoCoMam wrote: »

I saw on another board that the fuel pump on all Australian cars are configured differently for the reverse whirlpool effect you get when you go that far south of the equator (whatever that means I have no idea).

Fantastic. :pac:

CoCoMam

What's fantastic!!? Don't take the mick please!! That could be just complete codswallop thing I mentioned! I have no idea! Is reverse whirlpool such a thing?? I am a complete ignoramous (evidently) about these things!!

CoCoMam

Thanks!! As I've said it was on another board (that was a genuine thread) and I have evidently 'f' all knowledge on these things!! I gave ye a good laugh for a Friday though :-)

WhatsGoingOn2

CoCoMam wrote: »

I saw on another board that the fuel pump on all Australian cars are configured differently for the reverse whirlpool effect you get when you go that far south of the equator

Someone was watching too much Simpsons

Doltanian

haha, thats one of the first things I did when I arrived in Perth seven years ago and there was the three of us like three scientists in the bathroom of my hotel flushing the toilets and emptying the sink watching the water flow in the opposite direction.

Sam Russell

Doltanian wrote: »

haha, thats one of the first things I did when I arrived in Perth seven years ago and there was the three of us like three scientists in the bathroom of my hotel flushing the toilets and emptying the sink watching the water flow in the opposite direction.

The toilet is simply due to the design of the toilet which is designed to wash down the sides, and probably the same with the sink. With a bath you might see the effect as it is the rotation of the earth that causes it because of the conservation of angular momentum. The other two probably do not have enough moment for the earth rotation to cause the swirl. If you think about it, there is only about 25 cm across horizontally at most in a sink, less than half that in a toilet. but perhaps 1.5 metres in a bath - even then, if you gave the water a pit of a push, you could get it to go either way. The more water in the bath, the more the effect because it would be accumulative.

You can see with with ice skaters, who begin a spin with their arms out wide and then increase their rate of spin by closing their arm into their chest.

I would not expect any basic design changes in an engine because it goes south of the equator to Aus.

Kenny Logins

CoCoMam wrote: »

What's fantastic!!? Don't take the mick please!! That could be just complete codswallop thing I mentioned! I have no idea! Is reverse whirlpool such a thing?? I am a complete ignoramous (evidently) about these things!!

Sorry, but somebody was trolling when they posted that. Got to hand it to them, it was a good one.

Ubbquittious

ironclaw wrote: »

Unless its a fantastically high spec model with good resale value here, I can't see how this would be viable economically or from a personal time perspective. Assuming everything equal, and you can get it into the country, like you said, for 10% less than the retail price here (So €6k less) your talking €5 to €6k of a saving on buying the same car here. Retail versus actual sale price can differ, so assume you can get €1000 off the forecourt price here. Your down to €5k of a saving. That's less than the depreciation will cost you as it sits in the container on the way here.

By the time you pay for VRT, shipping and go through the hassle of paperwork, waiting for it etc, I can't see it being worth it for a 318. And I mean that from a purely economical standpoint, not a bias against the make etc.

If it was me, I'd import a classic or something you just can't get here.

It's only really worth the trouble for real exotic unsual high-end stuff like single cab petrol 2wd Hiluxes