VAT on UK demo car

SeanMacEoin

Hello!
I am currently considering buying a UK car for import. The car is now 7 months old and has 8000km on the clock so I know I can satisfy this aspect of the used car criteria.
What I can't figure out is the following - second hand / used cars according to Revenue.ie "may be regarded as a motor vehicle that has had one previous owner, including the current owner but not the Motor dealer who has held the vehicle as stock-in-trade"
What does this mean?
The Demo car is registered to the motor dealer. Does this mean it's liable for VAT in the Republic of Ireland.
Any thought much appreciated.
Thanks
Sean.

grogi

SeanMacEoin wrote: »

Hello!
I am currently considering buying a UK car for import. The car is now 7 months old and has 8000km on the clock so I know I can satisfy this aspect of the used car criteria.
What I can't figure out is the following - second hand / used cars according to Revenue.ie "may be regarded as a motor vehicle that has had one previous owner, including the current owner but not the Motor dealer who has held the vehicle as stock-in-trade"
What does this mean?
The Demo car is registered to the motor dealer. Does this mean it's liable for VAT in the Republic of Ireland.
Any thought much appreciated.
Thanks
Sean.

No.

SeanMacEoin

Thanks.
So .... What does this line in revenue.ie mean and what does it apply to with regard to second hand vehicles?

"one previous keeper including the current owner but not a motor dealer who kept the vehicle as stock-in-trade"

Sean

grogi

SeanMacEoin wrote: »

Thanks.
So .... What does this line in revenue.ie mean and what does it apply to with regard to second hand vehicles?

"one previous keeper including the current owner but not a motor dealer who kept the vehicle as stock-in-trade"

Sean

Keep reading the next sentence...

However, where a dealer has registered a vehicle in his or her own name and subsequently sells that vehicle, it must be treated as a second-hand vehicle

SeanMacEoin

OK but I read that sentence on how it affects the motor dealer and not the buyer.

As it doesn't mention the buyer further I guess there is no Impact for a buyer once the other criteria earlier in the guidance of >6M and >6000km are satisfied. Correct?

grogi

SeanMacEoin wrote: »

OK but I read that sentence on how it affects the motor dealer and not the buyer.

As it doesn't mention the buyer further I guess there is no Impact for a buyer once the other criteria earlier in the guidance of >6M and >6000km are satisfied. Correct?

Yes

Sam Russell

If you are liable for Irish VAT, you get the UK VAT refunded. You do not pay VAT twice.

So UK price is £10,000 plus vat = £12,000, Irish price is £12,300 , and you pay £14,300, less £2,000 UK Vat which is £12,300. You may pay a bit more because they include shipping, etc. So it only makes a 3% difference in price.

You also pay VRT as a percentage of the Irish market price.

SeanMacEoin

Thanks for your replies. I have since bought the demo car, paid the VRT - no VAT due. Wahoo!

Delacent

SeanMacEoin wrote: »

Thanks for your replies. I have since bought the demo car, paid the VRT - no VAT due. Wahoo!

You already paid UK vat @20%. If Irish vat was due, you would have had to buy ex vat from uk / reclaim the UK vat.

The difference is 3% - not exactly a fortune.

slave1

As a matter of interest how do you claim back the UK VAT, do you need to pay the Irish VAT first or make contact with the UK tax crowd saying you're liable for Irish VAT and do they take your word?
Anyone done this?