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VAT on Imported Vehicle

  • 29-07-2017 3:05pm
    #1
    jsh2014
    Registered Users, Registered Users 2 Posts: 1 ✭


    Hi All

    I have a business and bought a vehicle at an auction in the UK. VAT is payable at 20% there.
    When I sell the vehicle in Ireland am I obligated to charge VAT to the customer?

    Thanks


Comments

  • #2
    exaisle
    Registered Users, Registered Users 2 Posts: 2,675 ✭✭✭exaisle


    jsh2014 wrote: »
    Hi All

    I have a business and bought a vehicle at an auction in the UK. VAT is payable at 20% there.
    When I sell the vehicle in Ireland am I obligated to charge VAT to the customer?

    Thanks

    Why would you think that you don't have to charge VAT on the sale?


  • #3
    tanit
    Registered Users, Registered Users 2 Posts: 325 ✭✭tanit


    jsh2014 wrote: »
    Hi All

    I have a business and bought a vehicle at an auction in the UK. VAT is payable at 20% there.
    When I sell the vehicle in Ireland am I obligated to charge VAT to the customer?

    Thanks

    You need to provide your Irish Vat number to the seller in the UK. He should charge you no VAT and when you get the vehicle you do a VAT return and you charge VAT at 23% on the purchase and you make a dummy sale of the same amount creating the same Vat liability on Sales. That creates a nil Vat liability on the purchase.

    When you sell the vehicle you need to charge VAT at 23%

    You can check this leaflet from Revenue go to point 23 to read more about your specific situation

    All the above affects "commercial motor vehicles" your average passenger motor vehicle cannot reclaim any VAT on its purchase in Ireland and I don't know the legislation in the UK but my guess is that you can't either there. Still Vat must be charged on the sale. If you are buying this type of vehicle I recommend you you get proper tax advice or contact Revenue about how to deal with it. And in the same line I recommend you that if you are into a Hire Purchase or Lease agreement for the purchase of the vehicle you get proper tax advice as those agreements complicate the transaction even more

    I hope this helps


  • #4
    loca
    Registered Users, Registered Users 2 Posts: 73 ✭✭loca


    Hi I've bought a UK vehicle through my business. VRT is due to be completed next week. Its still on English plates.
    I now have a customer from the UK who wishes to buy it.

    Do I have to proceed with VRT to be able to do an intra EU acquisition and zero rate the VAT?

    Or should I just cancel the VRT and put my profit onto the vehicle price I paid which included 20% Uk Vat?

    Thanks, its a bit of a confusing one for me.


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