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EV import thread

  • 03-09-2018 8:13pm
    #1
    Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭


    I'm starting this specifically for my current position, but no reason it can't be a resource for similar questions and the inevitable new questions that arise post-Brexit.

    As most of you know, I'm considering buying and importing a new car from the North. Either Kona or Niro 64kWh. I'm not going to just keep it on UK plates for 6 months either before anyone suggests it!

    My 3 hurdles are the grant, VAT and VRT.

    VRT is straightforward. I'll probably have about a €5.6k vrt bill, minus the €5k allowance.

    For the VAT, I have 2 options. If I claim the EV grant in the UK, I would have to register the car there and pay the VAT. However once I bring it to Ireland and pay the Irish VAT, I can take the receipt back to the dealer in the North and they will refund the UK VAT.

    However if I buy it unregistered, the dealer will sell it to me ex-VAT, so I can just pay the Irish VAT on arrival and registration. However that means I can't claim the grant in the UK, so the question is whether I as a private individual can claim the SEAI grant on an imported car. I know a dealer can. I've emailed the SEAI for clarification.

    I have family in the UK do it's easy to register with them and then export.

    So I have 2 questions.

    1 - anyone know if I can claim the SEAI grant?

    2 - how is the VAT calculated? Is it as simple as 20% of the value of the car in the UK, and 23% of the value of the car here?


«1

Comments

  • Registered Users, Registered Users 2 Posts: 451 ✭✭_dof_


    Isn't it the case that if your family buy and register the car in the north, they can sell it to you as a private sale and no VAT is due down here? I thought that the regulations for buying ex-VAT in the UK and paying the VAT here (or buying including VAT in the UK and then reclaiming it) are only for buying a car from the motor trade.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    _dof_ wrote: »
    Isn't it the case that if your family buy and register the car in the north, they can sell it to you as a private sale and no VAT is due down here? I thought that the regulations for buying ex-VAT in the UK and paying the VAT here (or buying including VAT in the UK and then reclaiming it) are only for buying a car from the motor trade.

    Any car coming in that is less than 6 months old OR has less than 6k km on the clock is classed as new and liable for VAT. Doesn't matter where you bought it as far as I know.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    Well my first question is answered...

    I can't claim the SEAI grant as a private buyer. It can only be claimed by a registered dealer.

    So I would have to register in the North, pay the VAT, claim the grant and then pay the second amount of VAT and reclaim.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    DrPhilG wrote: »
    So I have 2 questions.

    1 - anyone know if I can claim the SEAI grant?

    2 - how is the VAT calculated? Is it as simple as 20% of the value of the car in the UK, and 23% of the value of the car here?


    1 - I very much doubt it. The grant is administered via SEAI and approved car dealers only. So, unless you can get a northern dealer to register with the SEAI or get a southern dealer to do some kind of deal with the northern dealer to cross sell the car to them BEFORE its registered in the north so that it is still a new car in the south.

    2 - I'd have thought.... Whatever your agreed price in the north is, say £32k, that would mean its £25600 ex vat. Convert £25600 to euro, at whatever the current FX is, and add on 23%.


  • Registered Users, Registered Users 2 Posts: 81,220 ✭✭✭✭biko


    The dealer is the one to handle the grant, not you.
    They will simply lower the price of the car.

    https://www.seai.ie/grants/electric-vehicle-grants/grant-amounts/
    When purchasing a vehicle the dealer will apply for the grant for you. The grant amount is deducted from the total price agreed for your new Electric Vehicle.


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  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    biko wrote: »
    The dealer is the one to handle the grant, not you.
    They will simply lower the price of the car.

    https://www.seai.ie/grants/electric-vehicle-grants/grant-amounts/

    Correct.
    So, if he could get the UK dealer to sell the car unregistered to an Irish dealer before any grants are applied then the Irish dealer could in theory apply the Irish grant.

    VAT would also be taken care of in that scenario as the UK dealer would sell ex Vat to the Irish dealer as they are both VAT registered companies and the Irish dealer would apply 23% to the sale to Phil.

    The trick is getting two Hyundai dealers who are willing to process the paperwork and no doubt both will want their margin for the privilege so it might be an expensive transaction.


  • Registered Users, Registered Users 2 Posts: 9,014 ✭✭✭Soarer


    Plus, you shouldn't be paying VAT twice.

    You either pay it on registration up the North, get a refund for exportation, then pay it down here.
    Or buy it new without the VAT up there, and pay everything down here.

    You certainly shouldn't be paying VAT up there, then paying it down here, then looking for a refund up there.


  • Registered Users, Registered Users 2 Posts: 22,639 ✭✭✭✭ELM327


    Could you not just follow the link given in the other thread and buy ex Vat in the UK?
    Or does that preclude you from the UK grant and the Irish grant?


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    ELM327 wrote: »
    Could you not just follow the link given in the other thread and buy ex Vat in the UK?

    According to the dealer I spoke to, in order to claim the UK grant it has to be registered and the VAT paid.

    My understanding of the 411 form was that if I give it to the dealer, they can sell ex-vat even if the car is already registered and the grant applied. They disagree.

    Soarer wrote: »
    Plus, you shouldn't be paying VAT twice.

    You either pay it on registration up the North, get a refund for exportation, then pay it down here.
    Or buy it new without the VAT up there, and pay everything down here.

    You certainly shouldn't be paying VAT up there, then paying it down here, then looking for a refund up there.

    That was my thought, but it's the UK dealer who applies the VAT and they said that the only way they can sell it ex VAT is if its not registered.

    So to get it ex VAT I don't get the grant, but if I get the grant I have to pay the VAT.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    KCross wrote: »
    The trick is getting two Hyundai dealers who are willing to process the paperwork and no doubt both will want their margin for the privilege so it might be an expensive transaction.

    It's a Kia dealer I'm talking to. The Kona would be coming directly from Hyundai UK so the local dealer wouldn't have much power to do anything.


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  • Registered Users, Registered Users 2 Posts: 2,942 ✭✭✭stesaurus


    I don't see an easy way around this. To do it correctly and all above board will mean paying the VAT twice and then relying on a reclaim of the UK VAT which could end up being very tricky.
    I know you are against waiting 6 months to re-register it but honestly it is the best option imo.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    Slightly off the wall suggestion but who knows.... How much do you like your UK relatives?! :)
    Let them drive it for 6 months and then simply drive it across and put new plates on it... no VAT or grant issues and the VRT will be easy as its only a few hundred.

    I know 6 months is a long time to have your relatives driving your shiny new car and how would insurance work etc..... but it might turn out to be your only viable option.... apart from walking away from the deal.


    Ultimately you have to get the grant in the UK or in Ireland.... otherwise its a ridiculously expensive car.

    Another thought.... would a Hyundai dealer in the north be willing to buy your car and register it as a demo and you buy it off them 5 months later and register it here once you hit the 6mth mark.... It would have the UK grant already applied and would be a normal UK import like you have already done before with the Leaf. It would just be a case of agreeing a price with the dealer up front on what you'd be paying in 5mths time.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    DrPhilG wrote: »
    According to the dealer I spoke to, in order to claim the UK grant it has to be registered and the VAT paid.

    It makes perfect sense that it has to be registered using a UK address to get the UK grant. It couldn't be any other way, otherwise you would have the UK government being screwed to grant aid a citizen in another EU country. That would be a gaping hole in their grant scheme.

    If you are registering it in your relatives name then the 411 form isn't in play in that transaction (because its not being exported) and hence the Vat will need to be paid (as your relatives are not vat registered).


    DrPhilG wrote: »
    My understanding of the 411 form was that if I give it to the dealer, they can sell ex-vat even if the car is already registered and the grant applied. They disagree.

    Where would it be registered though? To get the UK grant they need to give it UK plates and register it to a UK address. At that point it is presumably no longer on the dealers books and owned by a private citizen and they are not Vat registered so cannot sell ex Vat.

    Unless you are talking about the dealer registering it as a demo car like I suggested in my last post.... that might be possible.

    DrPhilG wrote: »
    That was my thought, but it's the UK dealer who applies the VAT and they said that the only way they can sell it ex VAT is if its not registered.

    They can sell it if they like ex Vat as long as they use the 411 form or sell directly to another Vat registered entity in the EU. The added complication is the UK EV grant which you wont get in that scenario and that makes that procedure a non-runner.


    Convincing a dealer to buy it as a demo car on your behalf and then selling it to you a few months later seems the most likely to succeed option to me but still far from certain.
    Ideally, they register in the company name as a demo and get grant applied, they use it as a demo for 3 or 4 months and then you buy it (ex Vat via Form 411) and then when the 6mth mark has passed you go to NCT and then you pay the 23% Irish Vat, the few hundred VRT and get your plates.


  • Registered Users, Registered Users 2 Posts: 9,014 ✭✭✭Soarer


    DrPhilG wrote: »
    That was my thought, but it's the UK dealer who applies the VAT and they said that the only way they can sell it ex VAT is if its not registered.

    So to get it ex VAT I don't get the grant, but if I get the grant I have to pay the VAT.

    I reckon the dealer is wrong, which is why there's that 411 form, or whatever it's called. There are plenty of secondhand EVs for sale in the UK that are "VAT qualified". I'm assuming that means they'll sell with the VAT rebate? Could be wrong.

    But saying the dealer is right, how will you pay the VAT on this side? Your receipt will have the price you paid. So you're going to pay the VAT here on the price+VAT paid up North? Or do you think revenue will subtract the VAT from your total?

    How would your dealer do a sale of an NV200 to a local tradesman? Surely it'd be sold with the VAT to get the grant, but then the VAT is claimed back for business?


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    Soarer wrote: »
    I reckon the dealer is wrong, which is why there's that 411 form, or whatever it's called. There are plenty of secondhand EVs for sale in the UK that are "VAT qualified". I'm assuming that means they'll sell without the VAT rebate? Could be wrong.

    You see the thing here is the UK EV grant. Under normal circumstances it would be fine for an ICE but getting the UK EV grant complicates things. It HAS to be registered in the UK first. I cant see there being any way around that.

    If the dealer registers it themselves as a demo then you can use the 411 form.

    Soarer wrote: »
    But saying the dealer is right, how will you pay the VAT on this side? Your receipt will have the price you paid. So you're going to pay the VAT here on the price+VAT paid up North? Or do you think revenue will subtract the VAT from your total?

    VAT is paid at the NCT centre during the VRT inspection. You will be asked for the UK invoice which will show 0% vat. They will then add the 23% Irish vat on what you've paid plus your VRT bill and away you go.

    If you already paid UK VAT, I think, you just pay the difference here at the NCT centre if its considered a new car. Could be wrong on that though. Maybe they hit you for the full 23% and tell you reclaim the UK vat yourself.... hmm, that would be a kicker!

    Soarer wrote: »
    How would your dealer do a sale of an NV200 to a local tradesman? Surely it'd be sold with the VAT to get the grant, but then the VAT is claimed back for business?

    Yea, that would be normal VAT procedure.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    Soarer wrote: »
    There are plenty of secondhand EVs for sale in the UK that are "VAT qualified".

    Just on that point, I believe "VAT qualified" just means that it was initially sold to a VAT registered entity. It makes it easier for other VAT registered entities to buy it.


  • Registered Users, Registered Users 2 Posts: 9,014 ✭✭✭Soarer


    KCross wrote: »
    Just on that point, I believe "VAT qualified" just means that it was initially sold to a VAT registered entity. It makes it easier for other VAT registered entities to buy it.

    Or buy for export.


  • Registered Users, Registered Users 2 Posts: 9,014 ✭✭✭Soarer


    KCross wrote: »
    Yea, that would be normal VAT procedure.

    That's what I was getting at.

    So why can't they sell the Niro without the VAT for export?


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    KCross wrote: »
    If the dealer registers it themselves as a demo then you can use the 411 form.

    So would the best option be for the dealer to buy it and register it to themselves, claim the grant, and then immediately sell it to me ex-vat with a 411 form completed?

    Obviously they're relying on me keeping my word to buy it, but even if I didn't they're hardly going to be left stuck with it as there is such high demand.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    Soarer wrote: »
    That's what I was getting at.

    So why can't they sell the Niro without the VAT for export?

    Not sure what distinction you are making.

    Phil has to get the UK grant applied otherwise the car is too expensive.

    To get the grant he has to register it to a UK address.

    If he is registering to a UK address its not being exported so Form 411 is not in play.

    If they register it as a demo car and get the grant applied then they can export it to Phil and maybe use the Form 411 at that stage. You have to get a dealer to agree to take over Phil's reservation first though. Not a small hurdle to jump.


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  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    DrPhilG wrote: »
    So would the best option be for the dealer to buy it and register it to themselves, claim the grant, and then immediately sell it to me ex-vat with a 411 form completed?

    Obviously they're relying on me keeping my word to buy it, but even if I didn't they're hardly going to be left stuck with it as there is such high demand.

    Yes. Thats my suggestion although they might not be able to sell it to you "immediately". I presume there are some rules around registering demo cars and how long they have to keep them for.

    The next hurdle would be, will Hyundai UK allow you to pass your reservation to a Hyundai dealer and allow them register it as a demo. Presumably Hyundai UK (click 'n buy) will be coming to you for full payment. Can you tell them that you want to give your reservation to a Hyundai dealer... they might say no to that request.


  • Registered Users, Registered Users 2 Posts: 2,821 ✭✭✭Silent Running


    DrPhilG wrote: »
    So would the best option be for the dealer to buy it and register it to themselves, claim the grant, and then immediately sell it to me ex-vat with a 411 form completed?

    Obviously they're relying on me keeping my word to buy it, but even if I didn't they're hardly going to be left stuck with it as there is such high demand.

    I'm chasing you around answering this. :D

    That's how it works. You might need to provide proof that you're going to export it immediately, even if you're allowed 2 months in the regulations.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    I'm chasing you around answering this. :D

    That's how it works. You might need to provide proof that you're going to export it immediately, even if you're allowed 2 months in the regulations.

    Lol, sorry. I've confused myself repeatedly at this stage...


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    KCross wrote: »
    The next hurdle would be, will Hyundai UK allow you to pass your reservation to a Hyundai dealer and allow them register it as a demo.

    You're still presuming I want a Hyundai...

    I'm working on the Niro option for now. If the Niro prices land in October and its too expensive then I'll have a few months to figure out the Kona.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    DrPhilG wrote: »
    You're still presuming I want a Hyundai...

    I'm working on the Niro option for now. If the Niro prices land in October and its too expensive then I'll have a few months to figure out the Kona.

    Indeed I was.
    One less hurdle there then if you decide on a Niro but you still need to get a dealer to agree to sell you a demo. That might be difficult if its their only Niro demo with no sign of a new batch coming to replace it.

    At least with the Kona the reservation is yours to use or lose.


    Ultimately what are you gaining here? After you pay the Irish vat and VRT there might not be much difference in price? Have you calculated that?
    Maybe it would be easier to just buy direct from an Irish dealer or is it the UK spec you are after?


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    KCross wrote: »
    Ultimately what are you gaining here? After you pay the Irish vat and VRT there might not be much difference in price? Have you calculated that?
    Maybe it would be easier to just buy direct from an Irish dealer or is it the UK spec you are after?

    I want the top spec.  Although the Kona "Paddy spec" looks like coming in at around €37k with metallic paint and that's similar to what I was expecting to be bringing in the Premium SE from the North so both price and spec would be better if I import.

    Much depends on Kia.  Will they offer the top spec here and what will it cost compared to the UK.


  • Registered Users, Registered Users 2 Posts: 451 ✭✭_dof_


    DrPhilG wrote: »
    Any car coming in that is less than 6 months old OR has less than 6k km on the clock is classed as new and liable for VAT. Doesn't matter where you bought it as far as I know.

    If I'm reading the following correctly:
    https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-transactions-motor-vehicles.pdf

    then when purchasing a "New Means of Transport" from a private (non-VAT registered) individual there is no VAT chargeable.

    See Chapter 10.2, in the section: "Where a private individual purchases a new vehicle (New Means of Transport) from a private individual in another country"

    it says the following:
    Where a private person purchases a new means of transport from a private person
    in another country, there is no VAT chargeable on that transaction.
    .

    but maybe I'm misunderstanding something.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    _dof_ wrote: »
    If I'm reading the following correctly:
    https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-transactions-motor-vehicles.pdf

    then when purchasing a "New Means of Transport" from a private (non-VAT registered) individual there is no VAT chargeable.

    See Chapter 10.2, in the section: "Where a private individual purchases a new vehicle (New Means of Transport) from a private individual in another country"

    it says the following:
    .

    but maybe I'm misunderstanding something.


    I think the important word in that text is "private individual". Inherent in that word is that they are not VAT registered and hence the person you will be buying from will already have paid the VAT in their country and you cannot be charged the same VAT twice hence no VAT "on that transaction".

    However you will still have the pay the increased VAT rate here when you present it to the NCT centre....
    "... The vehicle is also liable to Irish VAT on registration, and this VAT is payable at the NCTS Centre...... The value for calculating VAT is the price charged for the vehicle, converted to Euro where necessary."


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    My next stop will be to contact the VRT centre and enquire about the VAT.

    If I knew they would just charge the extra that would be easy. But if they'll insist on the full amount and then I have to reclaim VAT, it's a nuisance.

    Waiting for word back from the Kia garage though to see if they would register it to themselves for the grant and then sell to me ex VAT.


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  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    DrPhilG wrote: »
    Waiting for word back from the Kia garage though to see if they would register it to themselves for the grant and then sell to me ex VAT.

    And they will!

    Only restrictions are that they have to hold it for 40 days after registration before they sell to me.

    I'm waiting for word back from the VRT office too. If they will agree to only charge the difference between the UK vat and the Irish, I might just do it that way to save waiting an agonising 40 days.

    Plus the dealer could of course do the dirt on me and change their mind about selling it to me!


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    DrPhilG wrote: »
    And they will!

    Only restrictions are that they have to hold it for 40 days after registration before they sell to me.

    I'm waiting for word back from the VRT office too. If they will agree to only charge the difference between the UK vat and the Irish, I might just do it that way to save waiting an agonising 40 days.

    Plus the dealer could of course do the dirt on me and change their mind about selling it to me!

    Sounds promising.

    I figured they would need to keep it for some period of time before selling it on. Will they park it up for that 40 days or do they want to use it as a demo? Maybe you could negotiate a reduced price if you let them use it as a demo. You would save on VAT as well on each € they drop it.


    Not much reason for the dealer to stiff you really. They'd get bad PR for that. We know you like your twitter rants! :D


  • Registered Users, Registered Users 2 Posts: 434 ✭✭All in all


    DrPhilG wrote: »
    And they will!

    Only restrictions are that they have to hold it for 40 days after registration before they sell to me.

    I'm waiting for word back from the VRT office too. If they will agree to only charge the difference between the UK vat and the Irish, I might just do it that way to save waiting an agonising 40 days.

    Plus the dealer could of course do the dirt on me and change their mind about selling it to me!

    Revenue will charge you 23% vat there is no credit given for vat paid in another member state.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    All in all wrote: »
    Revenue will charge you 23% vat there is no credit given for vat paid in another member state.

    I've been reading that his morning on a few sites. I thought you couldn't be stung for vat twice within the EU but that doesn't seem to be the case.

    Although even the dealer in the UK said that if I paid the Irish vat, they would refund the UK vat if I brought them the receipt.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    KCross wrote: »
    We know you like your twitter rants! :D

    !!!

    How very dare you...


  • Registered Users, Registered Users 2 Posts: 434 ✭✭All in all


    DrPhilG wrote: »
    I've been reading that his morning on a few sites. I thought you couldn't be stung for vat twice within the EU but that doesn't seem to be the case.

    Although even the dealer in the UK said that if I paid the Irish vat, they would refund the UK vat if I brought them the receipt.

    But what you are attempting to do is buying a UK car as if you are a UK resident in order to claim grant, you should not be doing this. Because you are doing something that is effectively not by the book you fall out of being covered by legislation in this case. To my mind the dealer would be incorrect to refund you the VAT as he has sold the car to UK address holder, I suspect if the dealer sends this to his accountant the vat refund offer will be withdrawn. You may be able to claim vat refund from uk revenue.

    The second option where dealer registers car in his name and later sells to you Vat exempt using your Irish address is obviously completely above board.


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  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    All in all wrote: »
    But what you are attempting to do is buying a UK car as if you are a UK resident in order to claim grant, you should not be doing this. Because you are doing something that is effectively not by the book you fall out of being covered by legislation in this case. To my mind the dealer would be incorrect to refund you the VAT as he has sold the car to UK address holder, I suspect if the dealer sends this to his accountant the vat refund offer will be withdrawn. You may be able to claim vat refund from uk revenue.

    The second option where dealer registers car in his name and later sells to you Vat exempt using your Irish address is obviously completely above board.

    I think you've misread what he is doing. Its not illegal in any way.

    He is looking to get it ex Vat for export.... there is a specific UK revenue form(411) for it. Its above board.


  • Registered Users, Registered Users 2 Posts: 434 ✭✭All in all


    KCross wrote: »
    I think you've misread what he is doing. Its not illegal in any way.

    He is looking to get it ex Vat for export.... there is a specific UK revenue form(411) for it. Its above board.

    That’s not what he is doing though, he is buying a new car and registering it to a UK address in order to avail of grant. If he was buying a new car for export he would be buying using an Irish address and not going through uk registration process.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    All in all wrote: »
    That’s not what he is doing though, he is buying a new car and registering it to a UK address in order to avail of grant. If he was buying a new car for export he would be buying using an Irish address and not going through uk registration process.

    He's not. The dealer is buying and registering it as a demo car and THEN he is buying it as an Irish buyer using Form 411.
    Its no different to buying any ex-demo car from the UK and bringing it in.
    He will be paying the VAT no matter what, so no stroke is being pulled.


  • Registered Users, Registered Users 2 Posts: 434 ✭✭All in all


    KCross wrote: »
    He's not. The dealer is buying and registering it as a demo car and THEN he is buying it as an Irish buyer using Form 411

    Yes I am aware it is one of the options he is looking at, and as I said previously that is completely above board.

    He is also looking at a way of trying avoid the 40 days waiting time, without paying VAT twice, this is not possible.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    All in all wrote: »
    Yes I am aware it is one of the options he is looking at, and as I said previously that is completely above board.

    He is also looking at a way of trying avoid the 40 days waiting time, without paying VAT twice, this is not possible.

    Im not getting your point... where is the illegal bit?

    He asked if he could just pay the difference in Vat between UK and Irl vat and its likely thats not possible(he is awaiting revenue response). He hasn't suggested anything illegal or dodgy as far as I can see.


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  • Registered Users, Registered Users 2 Posts: 434 ✭✭All in all


    KCross wrote: »
    Im not getting your point... where is the illegal bit?

    He asked if he could just pay the difference in Vat between UK and Irl vat and its likely thats not possible(he is awaiting revenue response). He hasn't suggested anything illegal or dodgy as far as I can see.

    He is looking at 2 options is my understanding, I’m sure you or someone else will correct me if I am wrong. He asked me a question around one of the options which I am trying to answer but you keep telling I don’t understand what is proposed.

    Option 1 - register the car in his name and claim uk grant, pay vat in the UK and try to claim it back after Irish vat paid. This is going to create problems because he should not buy a car using uk address.

    Option 2 - effectively buy demo car from UK dealer 40 days after it had been registered, car will be/ should be sold VAT exempt, liable for Irish vat, no double payment.

    The OP asked me a question about option 1 above which I did my best to answer.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    All in all wrote: »
    He is looking at 2 options is my understanding, I’m sure you or someone else will correct me if I am wrong. He asked me a question around one of the options which I am trying to answer but you keep telling I don’t understand what is proposed.

    Option 1 - register the car in his name and claim uk grant, pay vat in the UK and try to claim it back after Irish vat paid. This is going to create problems because he should not buy a car using uk address.

    Option 2 - effectively buy demo car from UK dealer 40 days after it had been registered, car will be/ should be sold VAT exempt, liable for Irish vat, no double payment.

    The OP asked me a question about option 1 above which I did my best to answer.

    Got ya.
    Phil can correct me if Im wrong but I dont think he is suggesting option 1 at all.

    He was suggesting that he buy the car as a demo, pay UK vat... bring it into Ireland and only pay the difference between the UK and Irl vat as opposed to pay UK vat, pay Irish vat and THEN reclaim UK vat.

    All are still above board as you only pay one vat. He is just trying to figure out what revenue in Ireland will accept and its likely as you said that Irish revenue will want the full 23% (not the difference) and he would have to go the route of reclaiming UK vat... which is a pain. Getting it ex Vat in the first place is a better route.

    In both scenarios he is buying an ex-demo car. I dont think he is suggesting registering it in his name in the UK. He was toying with the idea of using UK relatives but thats even messier.


  • Registered Users, Registered Users 2 Posts: 434 ✭✭All in all


    KCross wrote: »
    Got ya.
    Phil can correct me if Im wrong but I dont think he is suggesting option 1 at all.

    He was suggesting that he buy the car as a demo, pay UK vat... bring it into Ireland and only pay the difference between the UK and Irl vat as opposed to pay UK vat, pay Irish vat and THEN reclaim UK vat.

    All are still above board as you only pay one vat. He is just trying to figure out what revenue in Ireland will accept and its likely as you said that Irish revenue will want the full 23% (not the difference) and he would have to go the route of reclaiming UK vat... which is a pain. Getting it ex Vat in the first place is a better route.

    In both scenarios he is buying an ex-demo car. I dont think he is suggesting registering it in his name in the UK. He was toying with the idea of using UK relatives but thats even messier.

    He has confirmed with dealer that demo will be sold ex vat.


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    All in all wrote: »
    He has confirmed with dealer that demo will be sold ex vat.

    Right, which is fine because its a demo(registered to the UK dealer) and being exported.
    He will pay the Irish VAT when he imports it here.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    All in all wrote: »
    He is also looking at a way of trying avoid the 40 days waiting time, without paying VAT twice, this is not possible.

    Correct.

    Given that there is no legitimate way to avoid or reclaim the double VAT, my choices are work with the dealer to register it as a demo, or bite the bullet and pay the Irish price.

    After the Hyundai Kona debacle, I can't see that being financially viable.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    KCross wrote: »
    I dont think he is suggesting registering it in his name in the UK. He was toying with the idea of using UK relatives but thats even messier.

    Sort of...

    I was thinking of registering the car in my aunt or father in law's name in order to get the grant, then they "sell" it to me and I export it.

    Not illegal as such, just exploiting loopholes.

    But as you say, very messy. My aunt would essentially be chasing a vat refund. Plus both aunt and FiL are on either pension or invalidity benefit so questions might be asked about how they're coughing up £30k+ on a new car!

    I think I'll just bite the bullet and wait the 40 days.


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    PS, now that Bjorn Nyland has completed his initial range test, I'm even more sold on the Niro. Fingers crossed this works out!


  • Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭KCross


    DrPhilG wrote: »
    Sort of...

    I was thinking of registering the car in my aunt or father in law's name in order to get the grant, then they "sell" it to me and I export it.

    Not illegal as such, just exploiting loopholes.

    But as you say, very messy. My aunt would essentially be chasing a vat refund. Plus both aunt and FiL are on either pension or invalidity benefit so questions might be asked about how they're coughing up £30k+ on a new car!

    I think I'll just bite the bullet and wait the 40 days.

    I couldn't see the relatives thing really working.
    Plus they would have to pay for the car out of their funds. I cant see how you could slip them 38k to buy it and then they sell it back to you even though you paid for it in the first place.... it would look all wrong on paper.


  • Registered Users, Registered Users 2 Posts: 24 ozmen


    Hi Phil, thinking of importing an EV from UK ourselves, can I ask was buying the car as a demo before selling it on to you something the dealer was readily willing to do or did it involve a bit of convincing, just wondering how easy it's likely to be to do the same, thanks


  • Registered Users, Registered Users 2 Posts: 12,616 ✭✭✭✭DrPhilG


    Took a little convincing and some checking with her manager.


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