Uk import - VAT

Durtburd

Hi,

Looking at buying fron the North. Car is 3 months old (edit to correct: 6 months old) and only a few hundred miles on the clock so VAT will be payable at the VRT centre.

Ireland's standard vat rate is dropping to 21% temporarily on September 1st.

I need a car ASAP so can't really wait till then to buy.

I've read online that if goods are supplied in august by a trader who is obliged to issue a vat invoice, and they only issue the invoice in September, the reduced rate applies.

Is there any way to use this to pay the reduced vat rate or am I stuffed here?

Could I just gamble and buy the car and turn up at vrt in 2 weeks and say I only brought the car down after 1st September? Would have no real way of proving this as its coming from the North- no ferry tickets etc.

User1998

Probably better to find a car with 6,000km and 6 months old, save yourself 23% compared to 2%.

If the car was bought in August it was ‘brought down’ in August, unless you can prove otherwise with storage receipts etc.

Just buy a cheap car here and wait until September to buy the new car

Durtburd

You can reclaim the uk vat paid so the price difference is negligible especially if only paying an extra percent of vat come September! Getting a great deal on the car too so would be gutted to give it up. But I need a car asap!!

michellie

The date of entry will be from the garage invoice you were given.

Sam Russell

Durtburd wrote: »

You can reclaim the uk vat paid so the price difference is negligible especially if only paying an extra percent of vat come September! Getting a great deal on the car too so would be gutted to give it up. But I need a car asap!!

You can only reclaim UK vat under certain circumstances. Check with Revenue before purchase.

The 6,000 km applies when the vehicle is presented for inspection, not on purchase.

Surely a 23% charge is worth avoiding.

Durtburd

Form Vat411 to be signed and the sale transaction can be 0 vat in the UK.

So would only end up costing an extra 1% vat in ireland if I can delay till 1sr Sept.

Looks like I'll just have to wait.

Sam Russell

Durtburd wrote: »

Form Vat411 to be signed and the sale transaction can be 0 vat in the UK.

So would only end up costing an extra 1% vat in ireland if I can delay till 1sr Sept.

Looks like I'll just have to wait.

Not all sales in the UK can have VAT at 0%. The vehicle must be vat chargeable. As a rule, 2nd hand vehicles are not generally ones that can be zero rated. You need to be certain, otherwise it is an expensive mistake.

bazz26

Why not just rent a car for the next two weeks and wait?

Durtburd

Sam Russell wrote: »

Not all sales in the UK can have VAT at 0%. The vehicle must be vat chargeable. As a rule, 2nd hand vehicles are not generally ones that can be zero rated. You need to be certain, otherwise it is an expensive mistake.

Yes great point I neglected to mention!
Luckily for me the car is an ex demo model only owned by the dealership so I'm sorted there.

@bazz I'm thinking the same now.

Casati

Durtburd wrote: »

Yes great point I neglected to mention!
Luckily for me the car is an ex demo model only owned by the dealership so I'm sorted there.

@bazz I'm thinking the same now.

Vat411 can be used for anything less than 6 months or 6000km as it is considered a new means of transport. Can’t see how you can get stung as the dealer will only invoice you the ex vat price of the car

Sam Russell

Casati wrote: »

Vat411 can be used for anything less than 6 months or 6000km as it is considered a new means of transport. Can’t see how you can get stung as the dealer will only invoice you the ex vat price of the car

If the vehicle is sold to a non VAT registered entity in the UK (like a private individual) then the VAT paid is dead. In the case of motor vehicles, it is a little more complex. Best check and make sure.

As for the 6 months or 6,000 km, that is the case for imposing the VAT on import. It is possible to get caught for VAT on the purchase and on the importation. It is important to verify that VAT is not charged on purchase.

Casati

Sam Russell wrote: »

If the vehicle is sold to a non VAT registered entity in the UK (like a private individual) then the VAT paid is dead. In the case of motor vehicles, it is a little more complex. Best check and make sure.

As for the 6 months or 6,000 km, that is the case for imposing the VAT on import. It is possible to get caught for VAT on the purchase and on the importation. It is important to verify that VAT is not charged on purchase.

No idea what you mean by saying VAT is dead?


Vat411 related to export of a new means of transport, so the 6 month 6000km is very relevant from an export perspective too.

It’s all here for anybody interested

https://www.gov.uk/government/publications/vat-new-means-of-transport-removal-from-the-uk-to-another-member-state-of-the-ec-vat411

Sam Russell

Casati wrote: »

No idea what you mean by saying VAT is dead?


Vat411 related to export of a new means of transport, so the 6 month 6000km is very relevant from an export perspective too.

It’s all here for anybody interested

https://www.gov.uk/government/publications/vat-new-means-of-transport-removal-from-the-uk-to-another-member-state-of-the-ec-vat411

If I, as a non-VAT registered individual, purchase a good and pay VAT on it, then the VAT cannot be reclaimed by anyone. That is what I mean by dead. The fact that the good is still 'new' is irrelevant.

Also, the treatment of vehicles is often a special case in VAT regulations. Commercial vehicles are treated differently from cars, for example.

Sam Russell

Casati wrote: »

No idea what you mean by saying VAT is dead?


Vat411 related to export of a new means of transport, so the 6 month 6000km is very relevant from an export perspective too.

It’s all here for anybody interested

https://www.gov.uk/government/publications/vat-new-means-of-transport-removal-from-the-uk-to-another-member-state-of-the-ec-vat411

Reading that, then it is possible to get the VAT back but it is a lengthy procedure, and I do not think it is available here in Ireland because of VRT. You must prove the VAT was paid, notify the authorities 14 days ahead of export so they can inspect the vehicle before export.

It might be useful to buy a new vehicle that is not available here. For example VW do not offer petrol versions f the Tiguan, or the Passat GTE estate. Some cars, less VAT are cheaper in the UK than here, some not.

Casati

Sam Russell wrote: »

Reading that, then it is possible to get the VAT back but it is a lengthy procedure, and I do not think it is available here in Ireland because of VRT. You must prove the VAT was paid, notify the authorities 14 days ahead of export so they can inspect the vehicle before export.

It might be useful to buy a new vehicle that is not available here. For example VW do not offer petrol versions f the Tiguan, or the Passat GTE estate. Some cars, less VAT are cheaper in the UK than here, some not.

It’s useful if you can buy a pre reg or new car at a discounted price vs the vat / vrt price too, the savings can be considerable but it depends on the discount on offer in the UK versus the discount on offer from an Irish dealer

Sam Russell

Casati wrote: »

It’s useful if you can buy a pre reg or new car at a discounted price vs the vat / vrt price too, the savings can be considerable but it depends on the discount on offer in the UK versus the discount on offer from an Irish dealer

yes, that is very true.

However, you must be careful with the manufacturers warranty as it varies from country to country. For example, VW give two years warranty Europe wide, but the third year is covered by the country of sale. Mazda, on the other hand, give their warranty Europe wide. Plus some marques are very expensive here when you strip off the taxes. Then you have exchange rates to consider.

Complicated.