How many cars can I sell per year?

Seang1998

How many cars can I import, VRT and sell per year before I am considered a ‘dealer’ or until revenue arrive at my door etc. I heard it was 5 or 6. I’ve already imported 3 cars this year, not for profit but just out of wanting to change cars frequently due to just wanting a change and to not loose any money on depreciation. I feel like if I was to import a couple more it could draw attention. Any help would be appreciated

Shefwedfan

Seang1998 wrote: »

How many cars can I import, VRT and sell per year before I am considered a ‘dealer’ or until revenue arrive at my door etc. I heard it was 5 or 6. I’ve already imported 3 cars this year, not for profit but just out of wanting to change cars frequently due to just wanting a change and to not loose any money on depreciation. I feel like if I was to import a couple more it could draw attention. Any help would be appreciated

Ring the revenue and ask

Wheety

Brexit may put a kibosh on your plans.

Shefwedfan

Seang1998 wrote: »

How many cars can I import, VRT and sell per year before I am considered a ‘dealer’ or until revenue arrive at my door etc. I heard it was 5 or 6. I’ve already imported 3 cars this year, not for profit but just out of wanting to change cars frequently due to just wanting a change and to not loose any money on depreciation. I feel like if I was to import a couple more it could draw attention. Any help would be appreciated

I very much doubt you have imported 3 cars and sold them on "not for profit".....


I have seen a few people start up these mini import companies.....I would guess revenue are keeping an eye on it....but you never know you could get away with it......


I never seen or heard of a minimum/maximum


Best to ring revenue and ask,......if caught I am sure a hefty bill might land

darragh o meara

Shefwedfan wrote: »

I very much doubt you have imported 3 cars and sold them on "not for profit".....


I have seen a few people start up these mini import companies.....I would guess revenue are keeping an eye on it....but you never know you could get away with it......


I never seen or heard of a minimum/maximum


Best to ring revenue and ask,......if caught I am sure a hefty bill might land

Revenue wont tell you but I have asked the question to a friend who works in revenue and he told me they start looking into people who register 4 or more in the same year as this would be seen as more than "Personal use"

colm_mcm

There’s a very easy way around that. Not that I’d be condoning it.

Henry Ford III

There is no rule. Importing and selling 1 car for profit might be enough to interest the Revenue depending on the size of the potential profit.

Shefwedfan

darragh o meara wrote: »

Revenue wont tell you but I have asked the question to a friend who works in revenue and he told me they start looking into people who register 4 or more in the same year as this would be seen as more than "Personal use"

This would be in normal case but a lot of these "car enthusiasts" have popped up in the last 12 months.



All buying cheap UK cars and then selling in Ireland....revenue has to notice the same trend everyone else is.....


Or maybe not

colm_mcm

Shefwedfan wrote: »

This would be in normal case but a lot of these "car enthusiasts" have popped up in the last 12 months.



All buying cheap UK cars and then selling in Ireland....revenue has to notice the same trend everyone else is.....


Or maybe not

I doubt they’re paying the VRT

irishgeo

The revenue uses a system of red flags. You generate too many and you'll be checked out. I imagine you have been flagged already.

Now Red flags could be things like registering cars or maybe it's large sums moving through your accounts etc. Don't forget they know what the car cost you for the VRT and they can also look at your bank records and see if you sold it not for profit as you say.

michellie

I've heard its 3+ before they call to your premises to ask you to register as a TAN holder.

U_Fig

If you can prove the cars are for personal use you should not have a problem, in theory if you imported one car then sold it without driving it you could be assessed as a "dealer" as it wasn't for personal use.

Shefwedfan

U_Fig wrote: »

If you can prove the cars are for personal use you should not have a problem, in theory if you imported one car then sold it without driving it you could be assessed as a "dealer" as it wasn't for personal use.

How can you prove multiple cars are for personal use? if you buy 3 cars within the space of a few months then most people would recognize something is up.



Once you buy a car it is already hit with depreciation because you are another owner. So if selling the car you are automatically making a profit?



Bringing a car in, paying the VRT and flogging a week later is hardly regarded as personal use?



These are questions by the way, I dont know the answer

irishgeo

irishgeo wrote: »

The revenue uses a system of red flags. You generate too many and you'll be checked out. I imagine you have been flagged already.

Now Red flags could be things like registering cars or maybe it's large sums moving through your accounts etc. Don't forget they know what the car cost you for the VRT and they can also look at your bank records and see if you sold it not for profit as you say.

Most lads doing this on the side would be selling them on without vrt, only taking cash etc in order to stay off the radar.

Same way they would be looking to get the log book when buying an Irish car and never register
it in their name but straight into the name of the person they sell it on to.

Shefwedfan

Will Creamy Snowshoe wrote: »

Most lads doing this on the side would be selling them on without vrt, only taking cash etc in order to stay off the radar.

Same way they would be looking to get the log book when buying an Irish car and never register
it in their name but straight into the name of the person they sell it on to.

Sounds as dodgy as hell.....why would anyone bother doing that?

U_Fig

Shefwedfan wrote: »

How can you prove multiple cars are for personal use? if you buy 3 cars within the space of a few months then most people would recognize something is up.



Once you buy a car it is already hit with depreciation because you are another owner. So if selling the car you are automatically making a profit?



Bringing a car in, paying the VRT and flogging a week later is hardly regarded as personal use?



These are questions by the way, I dont know the answer

I would say you could "prove" it by using the car as your daily driver i.e. putting milage on the car and not owning a second car within the period of ownership, taxing and insuring the car ect. before selling, in this situation you would find it hard to make any profits so revenue wouldn't give a toss as they won't make cash from you anyway

It's at the revenue's discretion mind you whether it would suffice as adequate proof though

In the case that a car is not taxed, insured or you owned a second primary vehicle, that would be a different story.

Shefwedfan

Shefwedfan wrote: »

...why would anyone bother doing that?

Is the answer not fairly obvious?

irishgeo

Shefwedfan wrote: »

Will Creamy Snowshoe wrote: »

Most lads doing this on the side would be selling them on without vrt, only taking cash etc in order to stay off the radar.

Same way they would be looking to get the log book when buying an Irish car and never register
it in their name but straight into the name of the person they sell it on to.

Sounds as dodgy as hell.....why would anyone bother doing that?

I know a supposedly reputable car dealer who forgot to register the car in the new owners name and the old owner started getting fines and penalty points notices.

namenotavailablE

Check "Badges of trade" for the kind of characteristics used to determine whether or not you are a trader.