UK leaving EU - VRT Implications

lotusm

Hi

Just wondering, If the UK leave the EU will there still be VRT on import of cars etc. ?

Car99

Still VRT but plus VAT plus import tax usually 10% if the rule remain the same for importing from outside the EU.

biko

Probably. The Vehicle Registration Tax exists today between two EU countries (us and UK) and it's highly unlike this tax would be abolished when UK leaves EU.

suchafunkymonke

The government will consider the import "Foreign and Exotic" and charge you more...

bazz26

Why would another country leaving the EU have an impact on Vehicle Registration Tax here?

Boskowski

bazz26 wrote: »

Why would another country leaving the EU have an impact on Vehicle Registration Tax here?

Agreed. I would have to ask the same question. Bringing a car from anywhere in the world into Ireland means VRT is due. We just happen to bring cars in from England mostly due to the right hand drive thing. If anything import taxes would be added on top which are not due when trading with EU countries.

The only country that can scrap Irish VRT is Ireland herself. But chances of that happening are next to zero. No administration, government, bureaucracy ever slimmed itself and its monetary 'requirements' down. Things only ever tend to go up. I'd say it would just about take a small revolution to reform the tax system here including VRT. That or someone taking a successful court case against the state based on EU free trade rules or such. Can't see either of the two happening.

Atlantic Dawn

If UK leaves there will be no source of cheaaaaaaaaaaaaaaaaapeeeeeeee tax diesels to import from as the other left hand markets in EU of Cyprus and Malta would not be viable. Outside the EU importing from Japan will be too costly as they mostly drive petrols so the VRT would be higher on top of VAT and import duty. If they decide to leave it won't be an overnight thing, I'd expect 3 to 5 years for them to go.

Joe 90

TBH, I wouldn't really expect any additional taxes on cars going to Ireland from England. First reason is that England imports a helluva lot more from the rest of the EU than they import from England. So if England leaves and the EU impose taxes on English goods the Engalnd will impose taxes on EU goods. EU looses a lot more and besides, do you think BM, Mercedes and the Stuttgart people are going to let Merkel screw up one of the attractive export marekets for their products?

The other thing that people forget is that for a long time taxes on English cars were a lot lower than on continental cars. Pre EU.

I would guess no change in the VRT situation, just a continuation of the rip off.

Esel

It might end up, as a non-EU import, being liable for duty and VAT as well.

OldMrBrennan83

This post has been deleted.

ohnonotgmail

Esel wrote: »

It might end up, as a non-EU import, being liable for duty and VAT as well.

why would the government do something to affect a source of income like VRT?

Atlantic Dawn

Joe 90 wrote: »

TBH, I wouldn't really expect any additional taxes on cars going to Ireland from England. First reason is that England imports a helluva lot more from the rest of the EU than they import from England. So if England leaves and the EU impose taxes on English goods the Engalnd will impose taxes on EU goods. EU looses a lot more and besides, do you think BM, Mercedes and the Stuttgart people are going to let Merkel screw up one of the attractive export marekets for their products?

The other thing that people forget is that for a long time taxes on English cars were a lot lower than on continental cars. Pre EU.

I would guess no change in the VRT situation, just a continuation of the rip off.

Any used car currently imported in to Ireland from outside an EU country has import duty added to it, this would apply to all UK imports in to this country if they left the EU, there can be no special case.

Joe 90

Atlantic Dawn wrote: »

Any used car currently imported in to Ireland from outside an EU country has import duty added to it, this would apply to all UK imports in to this country if they left the EU, there can be no special case.

Is that an Irish import duty or an EU import duty?
Is there an import duty levied on a car imported from the Isle of Man?

testicle

biko wrote: »

Probably. The Vehicle Registration Tax exists today between two EU countries (us and UK) and it's highly unlike this tax would be abolished when UK leaves EU.

Ummm, have you any idea what VRT is? It hasn't got anything to do with a tax between two countries...

Atlantic Dawn

Joe 90 wrote: »

Is that an Irish import duty or an EU import duty?
Is there an import duty levied on a car imported from the Isle of Man?

EU, it's the VAT rate for the car calculated on the purchase price of the car including shipping to Ireland so if you imported a car costing €10k from Japan in to Ireland and the shipping cost €1k you would have a taxable charge of 23% VAT on €11k which would be €2,530 and then VRT based on the emissions on top of that total.

No idea on Isle Of Man.

millington

Atlantic Dawn wrote: »

EU, it's the VAT rate for the car calculated on the purchase price of the car including shipping to Ireland so if you imported a car costing €10k from Japan in to Ireland and the shipping cost €1k you would have a taxable charge of 23% VAT on €11k which would be €2,530 and then VRT based on the emissions on top of that total.

No idea on Isle Of Man.

Actually you would have to pay 10% customs (EU rate) on the 11k which would leave it at 12,100

Then a further 23% VAT (Irish rate) on that leaving it at 14,883 :eek:

VRT after that aswell

Del2005

Joe 90 wrote: »

Is that an Irish import duty or an EU import duty?
Is there an import duty levied on a car imported from the Isle of Man?

Due to the EU being a single market VAT is only paid once on a new vehicle so when you import an 2nd hand vehicle from an EU country the country of origins VAT is all that matters. The only exemption is for vehicles which are <6 months old or <6000km which are classified as new and have to have VAT paid in the country of import.

The IoM is not a part of the EU, or UK, so currently it'll have import duties and VAT added to any imports and that won't change if the UK leaves or stays, the Channel Islands are the same.

If the UK leaves the EU all imports will have VAT and other duties applied, as there's no chance that the EU will give the UK favourable status to discourage other countries from jumping ship.

Esel

Del2005 wrote: »

Due to the EU being a single market VAT is only paid once on a new vehicle so when you import an 2nd hand vehicle from an EU country the country of origins VAT is all that matters. The only exemption is for vehicles which are <6 months old or <6000km which are classified as new and have to have VAT paid in the country of import.

In this case, the VAT paid in the other country can be reclaimed.

Del2005

Esel wrote: »

In this case, the VAT paid in the other country can be reclaimed.

Only if coming from another EU country, where cars are already expensive and have the steering wheel on the wrong side. The UK being outside the EU there will be no way to reclaim VAT.

Esel

Del2005 wrote: »

Only if coming from another EU country, where cars are already expensive and have the steering wheel on the wrong side. The UK being outside the EU there will be no way to reclaim VAT.

You said EU twice.

There will be a derogation if VAT has been paid i.e. the jammer was first registered before British Exit.

After that, all bets are off.

Want EU RHD? Malta (Hi, DeV ), Cyprus, Gibraltar, (West) Germany - BAOR (probably some good yokes there still...). Also, good EU qualified cars in 'mainland' EU owned or previously owned by Brexpats (copyright).

Outside - Suid Africa (well-maintained, rust free), Nihon, Aus, NZ.

Not forgetting, post exit, our close neighbours. Cheaper (shipping, duty and VAT-wise) than the above sources. Not to mention a better selection.

tl/dr May well happen, given Panama Papers. The masses may well kneejerk - that's the plan. Newer world order, etc. Buy dollah!

wtl/dr Buy now. Buy dollah.

Del2005

Esel wrote: »

There will be a derogation if VAT has been paid i.e. the jammer was first registered before British Exit.

There no chance if the UK leaves the EU there will be any derogation, they will be severely punished so no other country thinks about leaving.

Joe 90

Del2005 wrote: »

Due to the EU being a single market VAT is only paid once on a new vehicle so when you import an 2nd hand vehicle from an EU country the country of origins VAT is all that matters. The only exemption is for vehicles which are <6 months old or <6000km which are classified as new and have to have VAT paid in the country of import.

The IoM is not a part of the EU, or UK, so currently it'll have import duties and VAT added to any imports and that won't change if the UK leaves or stays, the Channel Islands are the same.

If the UK leaves the EU all imports will have VAT and other duties applied, as there's no chance that the EU will give the UK favourable status to discourage other countries from jumping ship.

The reason I asked about the Isle of Man is that I had heard a few yeers ago, when I was thinking about an Evo, that there was some advantage in first importing a car from Japan to the Isle and, after registration, the importing it to the UK.
A while back a neigbour broght in a couple od audi TTs, via the Isle. He told me that there was some tax advantage but we did not go into any detail.

The IOM, BTW, while not an EU member is part of the common customs are with Great Britain and NI.

Del2005

Joe 90 wrote: »

The reason I asked about the Isle of Man is that I had heard a few yeers ago, when I was thinking about an Evo, that there was some advantage in first importing a car from Japan to the Isle and, after registration, the importing it to the UK.
A while back a neigbour broght in a couple od audi TTs, via the Isle. He told me that there was some tax advantage but we did not go into any detail.

The IOM, BTW, while not an EU member is part of the common customs are with Great Britain and NI.

The UK had very high import duties on non EU imported cars, as they have a motor industry to protect, so for years the majority of JDM cars there where registered in Ireland and then exported to the UK. Might be something similar for the IoM.

And if the UK leaves the EU then it will be affected, unless it leaves the common customs and tries to negotiate EU access for itself.

deezell

Del2005 wrote: »

Only if coming from another EU country, where cars are already expensive and have the steering wheel on the wrong side. The UK being outside the EU there will be no way to reclaim VAT.

Not so much reclaim as refund on export. The UK will be able to refund the garage the VAT as the car is being exported. 12000€ car will have 2000 residual vat which should be refundable to the garage. Irish vat of 23% will be applied on import, but probaly based on the OMSP figure. It will still be a mess and more expensive.

Marcusm

deezell wrote: »

Not so much reclaim as refund on export. The UK will be able to refund the garage the VAT as the car is being exported. 12000€ car will have 2000 residual vat which should be refundable to the garage. Irish vat of 23% will be applied on import, but probaly based on the OMSP figure. It will still be a mess and more expensive.

You need to be very careful there; VAT on second hand cars is split between "VAT qualifying" and "margin scheme" cars. For the bulk of secondhand cars which have been owned by a private motorist, they will be under the "margin scheme" and you will not get an invoice with the full amount of VAT on it therefore will have nothing on which to obtain a refund.

deezell

Marcusm wrote: »

You need to be very careful there; VAT on second hand cars is split between "VAT qualifying" and "margin scheme" cars. For the bulk of secondhand cars which have been owned by a private motorist, they will be under the "margin scheme" and you will not get an invoice with the full amount of VAT on it therefore will have nothing on which to obtain a refund.

Im thinking in terms of importing from a non eu country, say the future uk, and paying the full vat at point of entry, then providing the uk vat registered supplier, a main dealer say, with proof of export from the UK. Under these circumstances is he entitled to reduce the sale price by the vat portion by way of a refund to me, or is it the case that only the vat on the difference in what the dealer paid ( by way of trade in) and what the dealer sold for is refundable? I'm assuming vat is not chargeable on exports but is this only applicable to ex works new goods and not pro rated for used goods such as cars?
I understood that even here if you export a car you are entitled to claim the pro rata refund of the vrt, and vat if exporting outside the EU. What we need are some real examples, comparing present UK and future UK.

Marcusm

deezell wrote: »

Im thinking in terms of importing from a non eu country, say the future uk, and paying the full vat at point of entry, then providing the uk vat registered supplier, a main dealer say, with proof of export from the UK. Under these circumstances is he entitled to reduce the sale price by the vat portion by way of a refund to me, or is it the case that only the vat on the difference in what the dealer paid ( by way of trade in) and what the dealer sold for is refundable? I'm assuming vat is not chargeable on exports but is this only applicable to ex works new goods and not pro rated for used goods such as cars?
I understood that even here if you export a car you are entitled to claim the pro rata refund of the vrt, and vat if exporting outside the EU. What we need are some real examples, comparing present UK and future UK.

Even today, and I doubt this will change, the amount of UK VAT available to be remitted (whether through refund or reduction in price) is dependent on whether the car is "vAT Qualifying" or not. If you look at Autotrader you'll see this is often highlighted by dealers. They recognise that such cars, to the right buyers, will cost less (and are thus worth more) than cars acquired under the margin scheme (where basically the VAT is a component of the difference between trade in price and sales price).

deezell

Marcusm wrote: »

Even today, and I doubt this will change, the amount of UK VAT available to be remitted (whether through refund or reduction in price) is dependent on whether the car is "vAT Qualifying" or not. If you look at Autotrader you'll see this is often highlighted by dealers. They recognise that such cars, to the right buyers, will cost less (and are thus worth more) than cars acquired under the margin scheme (where basically the VAT is a component of the difference between trade in price and sales price).

Thanks for that. So currently the vat already paid on the car in the UK satisfies the VAT liability here and we only have to pay the VRT (and it's implicit VAT). if we currently claimed back the UK VAT on a UK VAT qualifying car on export we would of course have to pay the Irish VAT on import as well as the VRT? . And this is the situation which will pertain post brexit, with non VAT qualifying cars still being hit for full Irish VAT, despite their being only a small differential or margin VAT available for reclaim from the UK on Export. So Only VAT qualifying cars should be considered for Import post Brexit. Cars from small dealers, private sale, auction rooms etc are all "margin" VAT. Newer cars from Fleet and commercial owners probably more likely to be VAT qualifying?