UK imports POST Brexit

adunis

Seems to me it's gonna be the same as a US import,
Vat @21% on the whole cost car transport shipping ie everything spent outside the country,and then Customs duty @10% on top of that.
At least those were the figures last time I looked

charlieIRL

Ouch. 31% is a lot to add on.

AFAIK, approximately 70,000 imports come into Ireland every year so its going to have an impact in both the UK and here. Will UK car sales stall? Drop even more?

slave1

No-one knows

ted1

charlieIRL wrote: »

Ouch. 31% is a lot to add on.

AFAIK, approximately 70,000 imports come into Ireland every year so its going to have an impact in both the UK and here. Will UK car sales stall? Drop even more?

It’s duty on VAT so 33%.

Not only that but revenue will base it on the cost to buy in Ireland then add their taxes !

kanuseeme

Customs duty is being paid on all cars imported into the E.U, who gets this money? The E.U. ? Or the Country that collects it ?

If its the E.U. would that not be a double tax on a car that registered before Brexit?

BigAl81

I believe half of all cars last year were imported, something like 100,000 cars!!

That's a lot of lost VRT and a lot of sales that would presumably now have to happen within Ireland?

Lumen

Expensive cars is going to be the least of our problems.

sk8board

You might make back a little of the gap from those fixed tax & tariff costs, with sterling depreciation against the euro, and a general recession in the UK dropping car values on the forecourts - both very speculative though

drumm23

BigAl81 wrote: »

I believe half of all cars last year were imported, something like 100,000 cars!!

That's a lot of lost VRT and a lot of sales that would presumably now have to happen within Ireland?

they don't lose the VRT because people will buy them here (incl VRT)

BigAl81

drumm23 wrote:

they don't lose the VRT because people will buy them here (incl VRT)

Well second hand UK imports get hit with VRT that second hand domestic sales wouldn't.

Would we even have enough to sell here?

drumm23

BigAl81 wrote: »

Well second hand UK imports get hit with VRT that second hand domestic sales wouldn't.

Would we even have enough to sell here?

well, sort of, it's a bit zero sum
might drop off somewhat though because I'm sure the dealers here will lift prices and maybe reduce demand

grogi

BigAl81 wrote: »

Well second hand UK imports get hit with VRT that second hand domestic sales wouldn't.

Would we even have enough to sell here?

We simply will buy more paddy spec new cars.

Technique

So is the 33% VAT on the VRT or on the value of the car? I'm guessing the latter?

Soarer

Technique wrote: »

So is the 33% VAT on the VRT or on the value of the car? I'm guessing the latter?

You pay 21% VAT on the cost of the car to get it to Ireland, ie. Purchase price + shipping.
You then add the VAT to the total, then pay 10% Import Duty on that.
Then you go pay your VRT.

Great little country.

September1

Soarer wrote: »

You pay 21% VAT on the cost of the car to get it to Ireland, ie. Purchase price + shipping.
You then add the VAT to the total, then pay 10% Import Duty on that.
Then you go pay your VRT.

Great little country.

I'm pretty sure customs and VAT rules are stipulated by EU, so I would not blame Ireland for anything but VRT - which is only part not changing. :-)


However if UK would be doing hard Brexit then there would be one more significant issue with bringing cars, this 23% VAT + 10% customs duty will be paid on value of import, which might be different than purchase price + shipping. I'm pretty sure that after short wave of lower invoices from UK dealers who accept cash payments under table, Revenue would start contesting those and instead of using invoice value use their own valuations. This could impact even honest importers who simply scored a bargain.

BarryM

Soarer wrote: »

You pay 21% VAT on the cost of the car to get it to Ireland, ie. Purchase price + shipping.
You then add the VAT to the total, then pay 10% Import Duty on that.
Then you go pay your VRT.

Great little country.

What would you suggest as an alternative?

Imports are only interesting, really, because the £/€ rate is favourable. Post a crash-out brexit that will probably get 'better' for us.

Spec difference buying is a personal decision.

Lumen

BarryM wrote: »

Spec difference buying is a personal decision.

But there a fair few ICE cars that just aren't sold in Ireland in any spec.

Now in fairness this is mostly due to their undesirable motor tax rates (the Suzuki Jimny being the most recent example I was looking at), which won't apply to EVs, but I'm not sure it's as simple as satnav and upholstery options.

I just can't see any upside of losing such a major RHD market in Europe.

copeyhagen

picking her 2017 civic up in wales tomorrow, then heading back hopefully the week after to pick up my tesla model s.

nows the time to buy if you have the dollar...

alanowx

Deleted User wrote: »

Not only that but revenue will base it on the cost to buy in Ireland then add their taxes !

No - they cant do that without just cause as to why the Transaction Value method (invoice) or other means was not used to calculate the Customs and VAT elements, see below.

September1 wrote: »

I'm pretty sure customs and VAT rules are stipulated by EU, so I would not blame Ireland for anything but VRT - which is only part not changing. :-)


However if UK would be doing hard Brexit then there would be one more significant issue with bringing cars, this 23% VAT + 10% customs duty will be paid on value of import, which might be different than purchase price + shipping. I'm pretty sure that after short wave of lower invoices from UK dealers who accept cash payments under table, Revenue would start contesting those and instead of using invoice value use their own valuations. This could impact even honest importers who simply scored a bargain.

Yes Customs Valuation procedures and VAT rules are laid down in EU law and apply across all EU States

See attached pdf link for how Customs value goods for import into EU. Heavy reading but here you are.
https://www.revenue.ie/en/tax-professionals/tdm/customs/valuation/valuation.pdf

In summary there are six methods of valuation which are generally applied in sequence from 1 to 6 namely

1. The transaction value method;
2. The transaction value of identical goods;
3. The transaction value of similar goods;
4. The deductive method;
5. The computed method; and
6. The residual valuation provision.

You only proceed to method 2 where method 1 is not a runner and so on. So usually the transaction value method is used (the invoice price) when available. It generally will only be overlooked by Customs when they have a reasonable doubt as to the bona fides of that invoice for whatever reason.

However even if Customs query that invoice price they have to notify the importer of such and explain the basis for that doubt and give the importer the opportunity to respond to the query with a "Right to be Heard". Even after that the importer has the right to appeal the decision if still not satisfied.

alanowx

kanuseeme wrote: »

Customs duty is being paid on all cars imported into the E.U, who gets this money? The E.U. ? Or the Country that collects it ?

If its the E.U. would that not be a double tax on a car that registered before Brexit?

AFAIK Most of the Customs duty collected is returned to a central fund in Europe and a small element is retained by the Country that collects it. I believe all the VAT stays with the collection country.

zilog_jones

BigAl81 wrote: »

Would we even have enough to sell here?

There's always Japan - we have been importing used cars from there for at least 35 years, if not more. And we already pay all the tax on cars from there, but depreciation and exchange rates still make it viable. The 10% tariff on cars from Japan is being phased out too.

charlieIRL

I reckon UK garages are panicking a small bit. I enquired about a few cars in UK Garages over the last few weeks and every one of them contacted me again in the last few days to see have I got my car yet.

I got offered a 3 month old e-golf which has less than 1k miles for £25k sterling today. Damm VAT

adunis

People seem to be missing the point here
Unless stg absolutely tanks,the UK imports are history when the UK is no longer in the EU
Remember 33% on top of the current cost.

unkel

charlieIRL wrote: »

I got offered a 3 month old e-golf which has less than 1k miles for £25k sterling today. Damm VAT

Try get a March one. As long as it has 6k km on it then by the time you present for VRT, it will not attract any VAT or VRT.

Bargains out there. Mike posted up a sub £23k 2019 eGolf this week. You'd land that for €25.5-€26k

charlieIRL

unkel wrote: »

Try get a March one. As long as it has 6k km on it then by the time you present for VRT, it will not attract any VAT or VRT.

Bargains out there. Mike posted up a sub £23k 2019 eGolf this week. You'd land that for €25.5-€26k

Am staying local for my one!!

unkel

Bring a 191 in for €25.5k. Buy the same car here for €35.5k

Your choice

charlieIRL

unkel wrote: »

Bring a 191 in for €25.5k. Buy the same car here for €35.5k

Your choice

I didn’t say I was paying 35.5k!!

unkel

Now you have me interested. You can get a 191 eGolf (presumably from a main VW dealer like the car in my example) for a lot less than that?

galwaytt

adunis wrote: »

People seem to be missing the point here
Unless stg absolutely tanks,the UK imports are history when the UK is no longer in the EU
Remember 33% on top of the current cost.

Where are you getting the 33% from ??

September1

I'm not tax expert, but considering that some cars are manufactured in EU, would duty not apply based on country of origin? Hence some UK imports attracting only VAT and VRT.