VAT loophole on new/nearly new cars from UK

Durtburd

I recently posted about this as i was looking at buying a new car from the UK. EU rules on VAT say that a car that is either less than 6 months old OR has less than 6000km on the clocks is a 'new means of transport and you're liable for VAT when purchasing.

The car I bought was over 6 months old but had less than 6000km on the clock.

I bought in the UK from a dealer without paying VAT as the car was VAT qualifying (crucial) and I made a declaration on form VAT411 that I was exporting the car immediately. I wondered whether I could avoid VAT by racking up miles before my VRT date here in Ireland. Lots of people on here said no and I tended to agree as it seemed crazy that you could avoid a large amount of VAT so easily.

I had my VRT appointment last night and unfortunately I didnt have enough mileage done for my own case, but they confirmed that if a car is presented to them with over 6000km on the clock and was first registered over 6 months ago, no VAT is payable in ireland REGARDLESS OF THE NON PAYMENT OF VAT IN ANOTHER MEMBER STATE.

To say I'm gutted is an understatement as just another 2000km in the car would have saved me about 4 grand.

Hopefully others can avail of this loophole before the window closes at the end of this year (brexit).

Mintoe

Recently imported 2 year old sports bike that had 1000miles/1600 KLM’s when collected from uk dealer.
It had over 6000 KLM’s when It was vrt’d before 30 day deadline and no vat charged, only vrt

colm_mcm

Mintoe wrote: »

Recently imported 2 year old sports bike that had 1000miles/1600 KLM’s when collected from uk dealer.
It had over 6000 KLM’s when It was vrt’d before 30 day deadline and no vat charged, only vrt

Did you pay VAT in the uk?

I know someone who did that on a car too.

Mintoe

yep, vat paid in uk but not detailed on invoice submitted to revenue, maybe it's different for vat qualifying cars?

colm_mcm

That’s not much of a stroke.
Getting the uk VAT off and not paying Irish VAT either is what the OP is talking about.

Mintoe

vat would have been about €2500 on top of €800 vrt and it only cost me €300 in petrol to put the miles on it, decent stroke i'd say

op said the following so yes, my experience is relevant
"I had my VRT appointment last night and unfortunately I didnt have enough mileage done for my own case, but they confirmed that if a car is presented to them with over 6000km on the clock and was first registered over 6 months ago, no VAT is payable in ireland REGARDLESS OF THE NON PAYMENT OF VAT IN ANOTHER MEMBER STATE."

colm_mcm

You would have got the uk vat back if you had to pay it in Ireland.

Mintoe

nope as it wasn't a vat qualifying vehicle, i looked into it on HMRC in UK, only it it was brand new could i have claimed the uk vat back

colm_mcm

There are VAT qualifying used vehicles too. Usually ex rental or ex Motability.

ELM327

colm_mcm wrote: »

You would have got the uk vat back if you had to pay it in Ireland.

Yes but then you're paying 1xVAT


The OP is looking to pay no VAT by cleverly exploiting a loophole.

colm_mcm

ELM327 wrote: »

Yes but then you're paying 1xVAT


The OP is looking to pay no VAT by cleverly exploiting a loophole.

Yep. And it has been done.

Mintoe

I know but there are special vat rates and exemptions for those vehicles declared at the point when they are bought new and registered

pat1981

Durtburd wrote: »

I recently posted about this as i was looking at buying a new car from the UK. EU rules on VAT say that a car that is either less than 6 months old OR has less than 6000km on the clocks is a 'new means of transport and you're liable for VAT when purchasing.

The car I bought was over 6 months old but had less than 6000km on the clock.

I bought in the UK from a dealer without paying VAT as the car was VAT qualifying (crucial) and I made a declaration on form VAT411 that I was exporting the car immediately. I wondered whether I could avoid VAT by racking up miles before my VRT date here in Ireland. Lots of people on here said no and I tended to agree as it seemed crazy that you could avoid a large amount of VAT so easily.

I had my VRT appointment last night and unfortunately I didnt have enough mileage done for my own case, but they confirmed that if a car is presented to them with over 6000km on the clock and was first registered over 6 months ago, no VAT is payable in ireland REGARDLESS OF THE NON PAYMENT OF VAT IN ANOTHER MEMBER STATE.

To say I'm gutted is an understatement as just another 2000km in the car would have saved me about 4 grand.

Hopefully others can avail of this loophole before the window closes at the end of this year (brexit).

I brought in a vat qualifying vehicle from the uk, I paid 14k vat on the sales invoice.
The car is over 6 months old and done 8k kilometers.
I presented it for inspection and I am awaiting clearing figure.
I mentioned your post to my accountant and his view vat has to be paid regardless. If memory serves me right ,he mentioned something about motor trade bringing cars in vat free from the uk but vat would be charged on selling price in Ireland.(caveat I lost interest when she said no so the last bit maybe incorrect)
Strange though and this maybe nothing but when the car was vrt inspected the lady asked me to fill in the vat figure below sales price. I didnt do this previously when I vrtd a car for a family member, I wonder was it because it was a certain vehicle.
If what your saying is correct would it be too late to claim the uk vat back or should the car have been bought in vat free. I plan on mentioning at the vrt desk when I pay final figure.

Marcusm

You have no entitlement to claim the U.K. VAT back as it was not a New Means of Transport at the point you acquired it irrespective of the VAT qualifying status.