VAT Cut 23% to 21%

AmberGold

Will this apply to Car Sales?

arch_stanton

Can we now expect a few euros off with this temporary VAT change from 23% to 21%? It's due to take effect in September

drunkmonkey

arch_stanton wrote: »

Can we now expect a few euros off with this temporary VAT change from 23% to 21%? It's due to take effect in September

It's only car repairs, tbh I think what there doing is lunacy, this thing is far from over and there spending money like it's Xmas. Are we going for another bailout for each wave.

pullandbang

drunkmonkey wrote: »

It's only car repairs,

Repairs are @ 13.5%.

arch_stanton

I think it's the whole higher rate band, cars, drink, clothes etc. The car repair thing was just an example going around in some early headlines and tweets.

pullandbang

It will apply to anything that currently has the 23% rate, including cars.

drunkmonkey

arch_stanton wrote: »

I think it's the whole higher rate band, cars, drink, clothes etc. The car repair thing was just an example going around in some early headlines and tweets.

Yea I read it in the indo earlier, could have changed now, it's still on their website...your right looks across the board now.
Could be a red flag for the car SEAI grant if there going flat out retrofitting homes.

The standard rate of VAT on food, clothes and car repairs will be reduced from 23pc to 21pc for a number of months.

drunkmonkey

pullandbang wrote: »

Repairs are @ 13.5%.

I know it was the Independent, should have know better than to believe them. Times has it correct.

jonnythefox

drunkmonkey wrote: »

Yea I read it in the indo earlier, could have changed now, it's still on their website...your right looks across the board now.
Could be a red flag for the car SEAI grant if there going flat out retrofitting homes.

The standard rate of VAT on food, clothes and car repairs will be reduced from 23pc to 21pc for a number of months.

I’m bit confused. Is the VAT reduced on cars?

jhegarty

jonnythefox wrote: »

I’m bit confused. Is the VAT reduced on cars?

RTE are saying it's for everything currently on 23%. So this would include cars.

drunkmonkey

jonnythefox wrote: »

I’m bit confused. Is the VAT reduced on cars?

Seems so it's across the board, I'd assume the vat figure is before grants so about €900 off then 1st including metallic and delivery.
If vat registered you can also claim 20% of the remaining vat if you use it over 60% for business.

Zenith74

I have a VRT appointment on 31st August where I will need to pay VAT on a car I recently imported, sounds like I might do well to delay that a few days?

KCross

Zenith74 wrote: »

I have a VRT appointment on 31st August where I will need to pay VAT on a car I recently imported, sounds like I might do well to delay that a few days?

For sure. 1st sept is the next vat period so you need to reschedule passed that date if you can.

Although 2% probably won’t be big money in your case?

Zenith74

KCross wrote: »

For sure. 1st sept is the next vat period so you need to reschedule passed that date if you can.

Although 2% probably won’t be big money in your case?

€500Ish so worth a reschedule I think! Thanks!

Alter_Ego

Zenith74 wrote: »

I have a VRT appointment on 31st August where I will need to pay VAT on a car I recently imported, sounds like I might do well to delay that a few days?

How did you get this booked? I imported a car in March, had a VRT appointment scheduled for 28/03. They closed the VRT offices that very day and haven't reopened them since. I check every so often and when trying to book a new appointment I just get:
"Due to public restrictions to tackle the spread of the Coronavirus, we have no schedules open until further notice."

AmberGold

So if you had a New car on order due for delivery mid August what would you be positioning with the garage?

Trade in generous and don’t want to piss them off.

Saving not insignificant.

RandomViewer

Zenith74 wrote: »

I have a VRT appointment on 31st August where I will need to pay VAT on a car I recently imported, sounds like I might do well to delay that a few days?

Don't you mean VRT, shouldn't be VAT on second hand car

KCross

AmberGold wrote: »

So if you had a New car on order due for delivery mid August what would you be positioning with the garage?

Trade in generous and don’t want to piss them off.

Saving not insignificant.

I’d ask for a 1st Sep invoice.

It’s not going to change their profit just delay it by 2 weeks. Can’t see it would be a big issue for them unless they already have cash flow issues.

slave1

Alter_Ego wrote: »

How did you get this booked? I imported a car in March, had a VRT appointment scheduled for 28/03. They closed the VRT offices that very day and haven't reopened them since. I check every so often and when trying to book a new appointment I just get:
"Due to public restrictions to tackle the spread of the Coronavirus, we have no schedules open until further notice."

VRT offices open since second week of July

Alter_Ego

RandomViewer wrote: »

Don't you mean VRT, shouldn't be VAT on second hand car

If the mileage is less than 6,000 km you're liable for VAT too on a second hand car.

Alter_Ego

slave1 wrote: »

VRT offices open since second week of July

OK, I guess I'll give them a call them, the online booking system appears to be closed still

gypsy79

AmberGold wrote: »

So if you had a New car on order due for delivery mid August what would you be positioning with the garage?

Trade in generous and don’t want to piss them off.

Saving not insignificant.

You are assuming that the reduced rate will be passed on to the consumer

AmberGold

gypsy79 wrote: »

You are assuming that the reduced rate will be passed on to the consumer

Sort of thought that’s what the Government intended :0

gypsy79

AmberGold wrote: »

Sort of thought that’s what the Government intended :0

Hmmmm, could be considered a move to allow them increase margins and survive on fewer sales

Arguable

stesaurus

Alter_Ego wrote: »

OK, I guess I'll give them a call them, the online booking system appears to be closed still

Try online Monday afternoon, seems to be when they release new dates

un5byh7sqpd2x0

gypsy79 wrote: »

You are assuming that the reduced rate will be passed on to the consumer

It’s illegal not to

CountingCrows

Javier Cool Numskull wrote: »

It’s illegal not to

LOL

JohnC.

Javier Cool Numskull wrote: »

It’s illegal not to

It's not illegal for them to keep charging the same. The VAT may be reduced, but they just take a larger profit, partly to cover increased costs and fewer sales and that period everything was closed. It's up to them if they reduce the price in line with the VAT drop.

JohnC.

Javier Cool Numskull wrote: »

You’re wrong there Ted.

Exactly which law stops a shop or vendor setting their margin at whatever they want?

Zenith74

Alter_Ego wrote: »

How did you get this booked? I imported a car in March, had a VRT appointment scheduled for 28/03. They closed the VRT offices that very day and haven't reopened them since. I check every so often and when trying to book a new appointment I just get:
"Due to public restrictions to tackle the spread of the Coronavirus, we have no schedules open until further notice."

Yeah the site is very confusing. I read that note and the usual VRT office I go to had no appointments, but I figured I'd try some of the others out of interest and found that some of them are actually open (eg. Dundalk). Strange. What it makes me wonder is if I was stopped with the UK reg on the car, beyond 30 days in the country, what would happen? VRT appointments are possible, but most people won't realise that I guess!

Zenith74

RandomViewer wrote: »

Don't you mean VRT, shouldn't be VAT on second hand car

It's an ex-demo, so less than 6 months old and less than 6000km so classed as a new means of transport. Importing as a company car though, so we can reclaim the UK 20% VAT, pay the 23% Irish VAT then avail of the VAT incentive on EVs to reclaim a fifth of the VAT paid for an effective VAT rate of 18.5%. Also should be able to use the Accelerated Capital Allowance scheme on it because again it is 'new'.

Alternative was to leave it with the dealer a few months to get over the 6 months and let them run the mileage up to 6000km.

slave1

slave1 wrote: »

VRT offices open since second week of July

Alter_Ego wrote: »

OK, I guess I'll give them a call them, the online booking system appears to be closed still

They are open online since first week of July, perhaps you need to try a different NCT centre (phased opening?)

KCross

gypsy79 wrote: »

You are assuming that the reduced rate will be passed on to the consumer

Thats somewhat true, Leo is saying its up to the retailer to decide how they react to it.... increased margin or lower price.
https://www.irishexaminer.com/news/arid-40021310.html


Although, in the context of a deal that you have already done for a new car I think the dealership would have a hard time not giving you the vat reduction as the price you agreed with them is an ex vat price and the VAT goes to the revenue.... if they were now to change the ex vat price it would be a breaking of the contract you have. I dont think they can do that if you have a contract signed.

They could of course force you to take the car before 1 Sep and hence stick to the 23% vat rate but I'd imagine for the sake of 2 weeks they would help the customer out and leave the customer with a better deal (their margin stays the same) and better chance they will return as a customer.

I'll be watching what VW's reaction is to it as the first customer deliveries of the ID.3 are in the first week of Sep (or so they say) and if they dont give a price reduction we should be complaining.

Current ID.3 price before delivery is €33,625. So, thats €43,625 before grants so I think that would mean a reduction of €873 if they pass it to the customer.

So, €32752 (before delivery). Lets see what VW do!

eagerv

If they throw in my metallic paint I will be happy:)

maclek

Zenith74 wrote: »

It's an ex-demo, so less than 6 months old and less than 6000km so classed as a new means of transport. Importing as a company car though, so we can reclaim the UK 20% VAT, pay the 23% Irish VAT then avail of the VAT incentive on EVs to reclaim a fifth of the VAT paid for an effective VAT rate of 18.5%. Also should be able to use the Accelerated Capital Allowance scheme on it because again it is 'new'.

Alternative was to leave it with the dealer a few months to get over the 6 months and let them run the mileage up to 6000km.

Well done to you for working it out, but this proves the system is bonkers!

Zenith74

maclek wrote: »

Well done to you for working it out, but this proves the system is bonkers!

Yeah clear as mud, accountant was baffled.

The interesting thing on looking into all of this though is that I was always of the belief that importing a 'new' car from the UK meant paying VAT there and here :rolleyes:. In reality both companies and private individuals (via a VAT411 form) can reclaim the UK VAT and pay the Irish rate. Particularly when our rate goes down to 21%, there could be some decent savings importing new cars from the UK.

gomamochi1

Zenith74 wrote: »

Yeah clear as mud, accountant was baffled.

The interesting thing on looking into all of this though is that I was always of the belief that importing a 'new' car from the UK meant paying VAT there and here :rolleyes:. In reality both companies and private individuals (via a VAT411 form) can reclaim the UK VAT and pay the Irish rate. Particularly when our rate goes down to 21%, there could be some decent savings importing new cars from the UK.

Otherwise you could ask a friendly family member or friend to register the car in n.i. and drive for 6 months arc

Alter_Ego

slave1 wrote: »

They are open online since first week of July, perhaps you need to try a different NCT centre (phased opening?)

Booked in now, just had to give them a call. I couldn't use my details to book online, no matter which center I picked. Something must have gotten stuck with my previous booking I guess.

KCross

KCross wrote: »

Thats somewhat true, Leo is saying its up to the retailer to decide how they react to it.... increased margin or lower price.
https://www.irishexaminer.com/news/arid-40021310.html


Although, in the context of a deal that you have already done for a new car I think the dealership would have a hard time not giving you the vat reduction as the price you agreed with them is an ex vat price and the VAT goes to the revenue.... if they were now to change the ex vat price it would be a breaking of the contract you have. I dont think they can do that if you have a contract signed.

They could of course force you to take the car before 1 Sep and hence stick to the 23% vat rate but I'd imagine for the sake of 2 weeks they would help the customer out and leave the customer with a better deal (their margin stays the same) and better chance they will return as a customer.

I'll be watching what VW's reaction is to it as the first customer deliveries of the ID.3 are in the first week of Sep (or so they say) and if they dont give a price reduction we should be complaining.

Current ID.3 price before delivery is €33,625. So, thats €43,625 before grants so I think that would mean a reduction of €873 if they pass it to the customer.

So, €32752 (before delivery). Lets see what VW do!

I asked VW Ireland. They said they will be reducing the RRP accordingly from 1 Sep.

Thierry12

KCross wrote: »

I asked VW Ireland. They said they will be reducing the RRP accordingly from 1 Sep.

Nice

Tesla?

eagerv

Thierry12 wrote: »

Nice

Tesla?

Tesla need to drop prices by about 8% when you take into account the devaluation of the $ .



Wishful thinking..:)

liamog

I mentioned it to my Mini Dealer, he wasn't sure what their plan was yet. I've an order with an agreed price, so will probably just end up paying less VAT.