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VRT question

  • 12-12-2018 11:30am
    #1
    Registered Users, Registered Users 2 Posts: 1,866 ✭✭✭


    Hi, maybe someone can shed some light on this.

    I'm considering bringing a fairly new car in from the UK, 5½ months old with 5000kms on the clock .. very close to the VAT limits eligible limit.

    So when I bring it in for registration will they go by age and the mileage on the clock that day or the day I brought it in to the country (or day I purchased it) ?

    Thanks for any help.


Comments

  • Registered Users, Registered Users 2 Posts: 19,102 ✭✭✭✭Del2005


    The milage when you present it. Take the long way home from the UK.


  • Registered Users, Registered Users 2 Posts: 1,866 ✭✭✭v10


    Del2005 wrote: »
    The milage when you present it. Take the long way home from the UK.

    and what about the age ?
    I'm reading online they require "Invoice which must have the date of purchase/sale clearly indicated", that would show it was less than 6 months old by 2 weeks even though it was over 6 months when presented.


  • Moderators, Business & Finance Moderators Posts: 17,861 Mod ✭✭✭✭Henry Ford III


    Take a driving holiday in the UK


  • Registered Users, Registered Users 2 Posts: 19,102 ✭✭✭✭Del2005


    v10 wrote: »
    and what about the age ?
    I'm reading online they require "Invoice which must have the date of purchase/sale clearly indicated", that would show it was less than 6 months old by 2 weeks even though it was over 6 months when presented.

    IIRC it's all on when you present it. If you rock up with 5,999km you get charged VAT, if you rock up with 6,001km there's no VAT. So age should be the same.


  • Registered Users, Registered Users 2 Posts: 508 ✭✭✭purpleisafruit


    Go view the car and if happy with it, pay a deposit and time collection and payment to be 6 months old.


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  • Registered Users, Registered Users 2 Posts: 1,866 ✭✭✭v10


    Go view the car and if happy with it, pay a deposit and time collection and payment to be 6 months old.

    That would be the smart thing, but I'm too impatient for that !


  • Registered Users, Registered Users 2 Posts: 51,363 ✭✭✭✭bazz26


    It has to be at least 6 months old and have at least 6000km on the clock.

    The invoice will have the date of purchase on it along with the ferry ticket which is what the VRT folks will go off of for date of entry into the state. Is it possible to put a deposit on it now and collect from the dealer in January?


  • Registered Users, Registered Users 2 Posts: 2,599 ✭✭✭newmember2


    The invoice date is of no real importance as it's the date of importation that counts.


  • Registered Users, Registered Users 2 Posts: 84,762 ✭✭✭✭Atlantic Dawn
    M


    As far as I know it's the date you present at VRT/NCT centre, if that date takes you over 6 months you are grand.


  • Registered Users, Registered Users 2 Posts: 19,102 ✭✭✭✭Del2005


    Revenue only mentions that it's 6 months or less, there's no mention of when you bring it into the state. So that means it's like milage once you start the process when it's over 6 months it's 2nd hand.


    https://www.revenue.ie/en/tax-professionals/tdm/vehicle-registration-tax/vrt-manual-section-01.pdf


    OP if you don't want to wait see if you can get it VAT free from the dealer.


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  • Registered Users, Registered Users 2 Posts: 1,866 ✭✭✭v10


    As far as I know it's the date you present at VRT/NCT centre, if that date takes you over 6 months you are grand.

    Thanks for the responses, seems they go by the invoice date. I got speaking to someone in Revenue today and was told they go by the date on the invoice for the 6 months but the mileage is whatever is on it on the date presented for registration.

    I even asked so what if I buy it today and leave it in the UK for a month and was told no, the date on the invoice will still be used .. crazy stuff !


  • Registered Users, Registered Users 2 Posts: 51,363 ✭✭✭✭bazz26


    newmember? wrote: »
    The invoice date is of no real importance as it's the date of importation that counts.

    If they don't care about the invoice date then why do they request an invoice at all? The only other information on the invoice is the foreign seller's details and the price the OP paid for the car in another country. Revenue have no use for either. The date of the invoice and date on the ferry ticket would correlate as to when the car entered the State for VRT purposes I'd have thought.

    Edit: Just seen that the OP got it from the horse's mouth so the invoice date is actually relevant to Revenue.


  • Registered Users, Registered Users 2 Posts: 2,599 ✭✭✭newmember2


    bazz26 wrote: »
    If they don't care about the invoice date then why do they request an invoice at all? The only other information on the invoice is the foreign seller's details and the price the OP paid for the car in another country. Revenue have no use for either. The date of the invoice and date on the ferry ticket would correlate as to when the car entered the State for VRT purposes I'd have thought.

    Edit: Just seen that the OP got it from the horse's mouth so the invoice date is actually relevant to Revenue.


    Yes...seems strange to me - would've thought mileage was on the day of inspection and age taken from date of importation. The official text from the revenue commisioners says two different things.

    On the one hand:
    Any vehicle purchased abroad and brought in to the country by a private individual is
    liable to VRT, and will be liable to VAT if it is a new means of transport. In this
    section, the term 'second-hand vehicle' applies generally to pre-owned vehicles.
    However, it does not include a pre-owned vehicle brought in to the State that was
    either acquired less than 6 months after entering into service, or has travelled 6,000
    kilometres or less. Such vehicles, even if they were previously owned and registered
    in another country, are categorised as 'new means of transport', and are always
    liable to VAT in Ireland.

    and then on the other:
    10.2. Purchase of new vehicles (New Means of Transport) by a private
    individual from a person in another country
    Where a private individual purchases a new vehicle (New Means of Transport)
    from a VAT-registered person, including a motor dealer, in another country
    It is important to note that the operative date in determining whether a means of
    transport comes within the time limits is the date on which it arrives in
    Ireland. Therefore, if a vehicle is first registered in the EU e.g. UK or NI, and it is sold
    within six months of arriving in this State and it is subsequently presented for
    registration, it is the date of first registration in the EU e.g. UK or NI by which the
    date is calculated for VAT purposes.
    For example:
     Where a vehicle is first registered in the UK or NI on 2nd January and is
    purchased by a State resident in June and subsequently arrives in the State on
    4th July and is presented for registration with 7000km, this is not a new means of
    transport and therefore VAT is not chargeable.
     Also, the point at which the 6000km is calculated is the date it arrives in this
    State and not the mileage given on the invoice when the vehicle was purchased
    in the UK/NI.


  • Registered Users, Registered Users 2 Posts: 1,866 ✭✭✭v10


    newmember? wrote: »
    Where a vehicle is first registered in the UK or NI on 2nd January and is purchased by a State resident in June and subsequently arrives in the State on 4th July and is presented for registration with 7000km, this is not a new means of transport and therefore VAT is not chargeable.

    This part is interesting, I expressly asked if I purchased the car today and left the car in the UK until it was passed 6 months old, would I then be liable for VAT and I was told yes I would because I purchased it when it was less than 6 months old. That's clearly different to what is written here.

    Can you provide a link to this source of this please ?


  • Posts: 846 ✭✭✭ [Deleted User]


    (b)

    These means of transport shall be regarded as ‘new’ in the cases:

    (i)

    of motorised land vehicles, where the supply takes place within six months of the date of first entry into service or where the vehicle has travelled for no more than 6 000 kilometres;

    From the EU vat directive. Irish transposition should be identical but I can't find it.

    However, Revenue's own guidelines do state that it's the date when brought into Ireland as per page 15 https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-transactions-motor-vehicles.pdf


  • Registered Users, Registered Users 2 Posts: 1,190 ✭✭✭quenching


    Revenue will accept any kind of receipt/invoice to show the purchase date, it doesn't have to be anything "official" such as a formal invoice on headed paper. If you buy from a private seller you'll be lucky to get a handwritten one on a scrap of paper. The importation date is what they use in practice, hence why they often ask for ferry ticket etc. I've paid VRT on 9 cars over the years, some with formal invoices, some with hand-written receipts.

    I know a man who wrote his own receipt ;)


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


    Interestingly, I experienced the same query at the opposite end of the scale.
    Car imported from US at 29 years 11 months and change, date on invoice was 2 months before date of arrival (29 years 9 months odd)
    Presented to VRT office at 30 years and 4 days old.

    Given vintage vrt €200 instead of normal vrt (which would have been 36% of OMSP)


  • Registered Users, Registered Users 2 Posts: 2,599 ✭✭✭newmember2


    v10 wrote: »
    This part is interesting, I expressly asked if I purchased the car today and left the car in the UK until it was passed 6 months old, would I then be liable for VAT and I was told yes I would because I purchased it when it was less than 6 months old. That's clearly different to what is written here.

    Can you provide a link to this source of this please ?

    I'd get back on to them and ask for a supervisor.

    The text i quoted is from a revenue document -

    https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-transactions-motor-vehicles.pdf


  • Registered Users, Registered Users 2 Posts: 2,691 ✭✭✭michellie


    No you wouldn't.

    The date that they go by is the First date of registration on the V5. If that's under 6 months then you're charged VAT.

    The invoice date is only used with the shipping/ferry docs to show when the car entered the ROI.

    And the mileage is read from the car on the day when inspected. Under 6000k = VAT charged


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