EV import from UK

Julianne99

Hi

Just wondering would anyone be able to clarify the VAT rules for importing an EV. I know I’ll have to pay a small amount of VRT - it’s the VAT I’m concerned with.

I bought the EV new in the UK in January, left it there for 6 months and ran up over 6000 km (to date). I’d now like to bring it over and register the vehicle here in Ireland.

Will I be exempt from VAT on import as the car is > 6 months old and has > 6000 km clocked?
The car was registered in my personal name in the UK but I’d like to import it as a company car through my Ltd company. Will this have any impact on VAT?

Thanks

krissovo

If its a personal import its likely its zero VAT and zero VRT assuming its not high value brand, I couldn't tell you what a LTD company would be though.

Zenith74

Have you been living in the UK for the 6 months?

Julianne99

Zenith74 wrote: »

Have you been living in the UK for the 6 months?[/quote

No, i’ve been here most of the time.

Zenith74

I think you'd probably be better off speaking to your accountant about this, it's complex enough.

From the Revenue guidance paper (https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-transactions-motor-vehicles.pdf)

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.

To me it looks like you should not have to pay VAT when you bring it for registration.

But the piece around getting the car into the companies name is where I'm not sure. From an accounting perspective you'd need to figure out if the company is buying the car from you before or after registration here, how it's going to pay for that etc.

You might also want to consider if you could reclaim the UK 20% VAT, pay the Irish VAT (which will be down to 20% in 2 weeks) and avail of the 80% VAT rule on electric vehicles. Probably too late to get the UK VAT back, but well worth a look.

Julianne99

Ok Zenith, thanks v much for the info. Unfortunately my accountant is not too well versed in this area

Our local NCT centre has not yet reopened for import registrations but I'll revert back on the outcome when it does.

Durtburd

Zenith74 wrote: »

I think you'd probably be better off speaking to your accountant about this, it's complex enough.

From the Revenue guidance paper (https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-transactions-motor-vehicles.pdf)


To me it looks like you should not have to pay VAT when you bring it for registration.

But the piece around getting the car into the companies name is where I'm not sure. From an accounting perspective you'd need to figure out if the company is buying the car from you before or after registration here, how it's going to pay for that etc.

You might also want to consider if you could reclaim the UK 20% VAT, pay the Irish VAT (which will be down to 20% in 2 weeks) and avail of the 80% VAT rule on electric vehicles. Probably too late to get the UK VAT back, but well worth a look.

What is the 80% VAT rule? Looking at importing soon myself

Del2005

Julianne99 wrote: »

Hi

Just wondering would anyone be able to clarify the VAT rules for importing an EV. I know I’ll have to pay a small amount of VRT - it’s the VAT I’m concerned with.

I bought the EV new in the UK in January, left it there for 6 months and ran up over 6000 km (to date). I’d now like to bring it over and register the vehicle here in Ireland.

Will I be exempt from VAT on import as the car is > 6 months old and has > 6000 km clocked?
The car was registered in my personal name in the UK but I’d like to import it as a company car through my Ltd company. Will this have any impact on VAT?

Thanks

You'll have to provide proof of usage in the UK like insurance and tax plus loads of proof that you actually lived in the UK for 12 months to avail of the VRT exemption. If you qualify you cannot sell it for 12 months.

Since you are resident in Ireland and intend to sell it to your company on import I can't see how you can qualify for the exemption and if you do you cannot sell it to your company for a year after import.

Zenith74

Del2005 wrote: »

You'll have to provide proof of usage in the UK like insurance and tax plus loads of proof that you actually lived in the UK for 12 months to avail of the VRT exemption. If you qualify you cannot sell it for 12 months.

Since you are resident in Ireland and intend to sell it to your company on import I can't see how you can qualify for the exemption and if you do you cannot sell it to your company for a year after import.

It’s an EV though so the first €50k is exempt of VRT the first €5k is exempt anyway. VAT would be the bigger concern for me, but the wording in the document I linked above seems to suggest it might be OK to me.

FWIW I found the VRT centre quite helpful at info.nct@ncts.ie. They’re not Revenue so cannot give tax advice, but they were able to say what they would be required to ask for in a given circumstance...

Zenith74

Durtburd wrote: »

What is the 80% VAT rule? Looking at importing soon myself

A company can claim back 20% of the VAT on an electric vehicle if it is used primarily for work purposes (something like 60% off the top of my head).

stesaurus

Zenith74 wrote: »

It’s an EV though so the first €50k is exempt of VRT anyway. VAT would be the bigger concern for me, but the wording in the document I linked above seems to suggest it might be OK to me.

It's not the 1st 50k that's exempt from VRT. Its a 5k credit. So with VRT @14% it's roughly 35,750

I'd say you're thinking of the BIK exemption which is 50k

stesaurus

Julianne99 wrote: »

Hi

Just wondering would anyone be able to clarify the VAT rules for importing an EV. I know I’ll have to pay a small amount of VRT - it’s the VAT I’m concerned with.

I bought the EV new in the UK in January, left it there for 6 months and ran up over 6000 km (to date). I’d now like to bring it over and register the vehicle here in Ireland.

Will I be exempt from VAT on import as the car is > 6 months old and has > 6000 km clocked?
The car was registered in my personal name in the UK but I’d like to import it as a company car through my Ltd company. Will this have any impact on VAT?

Thanks

You'll need to make sure to have your ferry ticket to show when it entered the state. Might raise a question or two as your invoice is from a much earlier time.
You'll be fine for VAT, as in you won't have any additional VAT to pay.
Reclaiming VAT that's a question for your accountant.
VRT will depend on the value. Bare in mind this is not what you paid but what revenue determine the OMSP is. What is the car and we can give some rough advice.

Durtburd

Zenith74 wrote: »

A company can claim back 20% of the VAT on an electric vehicle if it is used primarily for work purposes (something like 60% off the top of my head).

Ah right I get you now.

Are you familiar with this process? As it happens I posted some questions on it yesterday on the taxation forum.

I have a small business with turnover approx 10k and haven't registered for VAT yet as I'm tiny and wasn't sure it would be worth the paperwork.

Would I have to register for VAT before I buy the car to claim this back or could I register after buying it to put the claim in?
And would I have to have paid enough vat for the year to cover what I'm claiming back off the car, or would my claim be limited to the amount of vat payable for my business for the year?

Appreciate any insight you could give on this, I'm totally lost!

Julianne99

stesaurus wrote: »

You'll need to make sure to have your ferry ticket to show when it entered the state. Might raise a question or two as your invoice is from a much earlier time.
You'll be fine for VAT, as in you won't have any additional VAT to pay.
Reclaiming VAT that's a question for your accountant.
VRT will depend on the value. Bare in mind this is not what you paid but what revenue determine the OMSP is. What is the car and we can give some rough advice.

Ok thanks, got the ferry ticket and did the VRT calculation using the Revenue's online tool. VRT came out at €439 (current OMSP approx 38k).

Fine with that, hopefully will be VAT exempt.

Julianne99

Zenith74 wrote: »

It’s an EV though so the first €50k is exempt of VRT the first €5k is exempt anyway. VAT would be the bigger concern for me, but the wording in the document I linked above seems to suggest it might be OK to me.

FWIW I found the VRT centre quite helpful at info.nct@ncts.ie. They’re not Revenue so cannot give tax advice, but they were able to say what they would be required to ask for in a given circumstance...

Thanks for the tip. Will drop them an email and ask what they'll need.

Buzwaldo

Durtburd wrote: »

Ah right I get you now.

Are you familiar with this process? As it happens I posted some questions on it yesterday on the taxation forum.

I have a small business with turnover approx 10k and haven't registered for VAT yet as I'm tiny and wasn't sure it would be worth the paperwork.

Would I have to register for VAT before I buy the car to claim this back or could I register after buying it to put the claim in?
And would I have to have paid enough vat for the year to cover what I'm claiming back off the car, or would my claim be limited to the amount of vat payable for my business for the year?

Appreciate any insight you could give on this, I'm totally lost!

As your turnover is low you don’t need to register for VAT, so don’t need to charge VAT on sales or services you provide. If you do register, you will have to charge your clients or customers VAT, which will make you less competitive. Plus a lot of hassle with VAT returns etc. Something to consider. Plus, registering to get a rebate like that, with small sales may attract unwanted attention.
That’s my understanding anyway, but I’m not an expert. I suggest you ask your accountant.