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Classic car import: what does Brexit mean?

  • 17-11-2020 12:32am
    #1
    Registered Users Posts: 10 ✭✭✭ Justinwick


    I have a classic car i am buying in December. I won’t get to import it until mid January.

    I’m afraid that given uk will be outside the eu I could be hit with additional tax and custom duty.

    Does anyone know the state of play here? Right now it is €50 tax as it’s a classic car.

    Could I just show evidence of buying it in December or is it the date you actually take it into
    Ireland?

    Really don’t want to be crippled with extra fees


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Comments

  • Registered Users Posts: 601 ✭✭✭ mikehn


    Its the date you present it for assessment that they work off, you will be penalized if there is an undue delay in presenting but if its vintage it will be minimal.


  • Registered Users Posts: 10 ✭✭✭ Justinwick


    mikehn wrote: »
    Its the date you present it for assessment that they work off, you will be penalized if there is an undue delay in presenting but if its vintage it will be minimal.

    Thanks. Do you think presenting it in January, after the end of the brexit transition period will result in it treated as coming from outside the eu and result in the higher custom duty and vat? Looks like it


  • Registered Users Posts: 5,796 ✭✭✭ Isambard


    the VRT currently is €200 on a 30+ yr old car.

    what you pay after Jan 1st will depend on what deal is done. If there is no deal, you'll be liable for import duty plus VAT based on the purchase price. The date you import it will be the date they work on, they won't backdate to an earlier purchase date.


  • Registered Users Posts: 2,492 ✭✭✭ Car99


    Justinwick wrote: »
    Thanks. Do you think presenting it in January, after the end of the brexit transition period will result in it treated as coming from outside the eu and result in the higher custom duty and vat? Looks like it

    As it stands , after 31st December 2020 UK imports will be subject to VAT 21% and import duty 10% same as all other non EU imports .


  • Registered Users Posts: 530 ✭✭✭ unfit2006


    Car99 wrote: »
    As it stands , after 31st December 2020 UK imports will be subject to VAT 21% and import duty 10% same as all other non EU imports .

    Will items imported from Northern Ireland be subject to vat and/or import duty or will "the Ireland Protocol" have any bearing on how such goods are treated for vat and/or import duty ?


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  • Registered Users Posts: 10 ✭✭✭ Justinwick


    Car99 wrote: »
    As it stands , after 31st December 2020 UK imports will be subject to VAT 21% and import duty 10% same as all other non EU imports .

    Any chance this won’t happen ie is it set in stone?
    Have a car coming in in february. Gonna make it very expensive


  • Registered Users Posts: 2,492 ✭✭✭ Car99


    unfit2006 wrote: »
    Will items imported from Northern Ireland be subject to vat and/or import duty or will "the Ireland Protocol" have any bearing on how such goods are treated for vat and/or import duty ?

    From Jan 1st 2021 NI is outside the EU as part of the UK. VAT and import duty will be due.


  • Registered Users Posts: 2,492 ✭✭✭ Car99


    Justinwick wrote: »
    Any chance this won’t happen ie is it set in stone?
    Have a car coming in in february. Gonna make it very expensive

    It's not set in stone as negotiations are ongoing. UK playing hardball .
    The other thing with import duty and VAT is they are payable before the goods can clear customs so if you're bringing in a car you got to pay or the car is impounded. Unlike VRT where a car can enter the state and if you choose not to pay VRT for one reason or another you can just remove it from the state.


  • Registered Users Posts: 5,796 ✭✭✭ Isambard


    Car99 wrote: »
    It's not set in stone as negotiations are ongoing. UK playing hardball .
    The other thing with import duty and VAT is they are payable before the goods can clear customs so if you're bringing in a car you got to pay or the car is impounded. Unlike VRT where a car can enter the state and if you choose not to pay VRT for one reason or another you can just remove it from the state.

    yes and you could be in a long queue for customs at the port (both sides potentially ) and I wonder would they shunt you to one side whilst calculating the tax. Not good


  • Registered Users Posts: 2,492 ✭✭✭ Car99


    Isambard wrote: »
    yes and you could be in a long queue for customs at the port (both sides potentially ) and I wonder would they shunt you to one side whilst calculating the tax. Not good

    Especially if your import requires a valuation from Rosslare if they dont agree with your own valuation . It will be very difficult if there is a no deal Brexit


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  • Registered Users Posts: 5,796 ✭✭✭ Isambard


    Car99 wrote: »
    Especially if your import requires a valuation from Rosslare if they dont agree with your own valuation . It will be very difficult if there is a no deal Brexit

    well i think the excise duty and VAT will be based on the invoice but I can see them wanting to sort the VRT too at the same time and my guess is imported cars could be held up for days.


  • Registered Users Posts: 3,093 ✭✭✭ hi5


    I've noticed an awful lot of UK reg cars on Done deal at the moment (and prices seem to be dropping by the day).
    If as said the appointment dates with the NCT for VRT assessment are now running into January then there is going to be a lot of stuff out there which is unsaleable for the moment.


  • Moderators, Home & Garden Moderators Posts: 4,743 Mod ✭✭✭✭ kadman


    hi5 wrote: »
    I've noticed an awful lot of UK reg cars on Done deal at the moment (and prices seem to be dropping by the day).
    If as said the appointment dates with the NCT for VRT assessment are now running into January then there is going to be a lot of stuff out there which is unsaleable for the moment.

    If they are unsaleable at the moment, then they are also unbuyable:)

    unless you want to face an unknown tax burden with the forthcoming brexit.


  • Moderators, Category Moderators, Motoring & Transport Moderators, Regional East Moderators Posts: 58,831 CMod ✭✭✭✭ unkel


    hi5 wrote: »
    I've noticed an awful lot of UK reg cars on Done deal at the moment (and prices seem to be dropping by the day).
    If as said the appointment dates with the NCT for VRT assessment are now running into January then there is going to be a lot of stuff out there which is unsaleable for the moment.

    Exactly what I predicted. I would urge anyone in here not to buy a car on UK regs anymore. Unless of course you want to take a gamble and you reckon a hard Brexit will not happen

    "Wind is Ireland's oil" - An Taoiseach, 25/05/2022



  • Moderators, Technology & Internet Moderators, Regional North East Moderators Posts: 10,826 Mod ✭✭✭✭ PauloMN


    Car99 wrote: »
    As it stands , after 31st December 2020 UK imports will be subject to VAT 21% and import duty 10% same as all other non EU imports .

    On what value would the VAT and duty be charged at on a classic?

    Say I'm bringing in a car I've paid £5k for in the UK, 30 year old or more. Currently it's the €200 VRT. Is it now going to be an additional 21% of the purchase price, and 10% on the purchase price for import duty?

    Gonna rule out a lot of cars realistically if that's the case.


  • Moderators, Home & Garden Moderators Posts: 4,743 Mod ✭✭✭✭ kadman


    Of course this situation gives a perfect opportunity for the ringers to make a comeback,

    and I am not talking bell ringers;)


  • Registered Users Posts: 2,492 ✭✭✭ Car99


    Isambard wrote: »
    well i think the excise duty and VAT will be based on the invoice but I can see them wanting to sort the VRT too at the same time and my guess is imported cars could be held up for days.

    Based on the invoice normally but revenue reserve the right to assess goods based on market value if they so wish to stop me rocking up with a hand written invoice for €50.

    VRT is contracted to NCT crowd so they wont be bothered about that.


  • Registered Users Posts: 2,492 ✭✭✭ Car99


    PauloMN wrote: »
    On what value would the VAT and duty be charged at on a classic?

    Say I'm bringing in a car I've paid £5k for in the UK, 30 year old or more. Currently it's the €200 VRT. Is it now going to be an additional 21% of the purchase price, and 10% on the purchase price for import duty?

    Gonna rule out a lot of cars realistically if that's the case.

    It's going to be 10% of the cost of the goods including shipping costs.

    Then 21% VAT of the total . (23% post covid)


  • Registered Users Posts: 5,796 ✭✭✭ Isambard


    PauloMN wrote: »
    On what value would the VAT and duty be charged at on a classic?

    Say I'm bringing in a car I've paid £5k for in the UK, 30 year old or more. Currently it's the €200 VRT. Is it now going to be an additional 21% of the purchase price, and 10% on the purchase price for import duty?

    Gonna rule out a lot of cars realistically if that's the case.

    and VAT on the transport costs too I think. Seems very likely, hard to see what deal can be done.


  • Moderators, Category Moderators, Motoring & Transport Moderators, Regional East Moderators Posts: 58,831 CMod ✭✭✭✭ unkel


    I think it is 10% import duty over the cost of the car + cost of transport to get it here + costs of insurance to get it here and then 21% VAT on top of the lot of that (tax on tax) and then of course also the VRT which will remain at €200 as long as the car is >30 years old

    So if the car was GBP1800, transport €800 and €200 insurance, you pay 10% (€2000+€800+€200) = €300 import duty and then 21% (€3000 + €300) = €700 VAT and €200 VRT

    So €4200 in total for your GBP1800 car!

    "Wind is Ireland's oil" - An Taoiseach, 25/05/2022



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  • Moderators, Home & Garden Moderators Posts: 4,743 Mod ✭✭✭✭ kadman


    unkel wrote: »
    I think it is 10% import duty over the cost of the car + cost of transport to get it here + costs of insurance to get it here and then 21% VAT on top of the lot of that (tax on tax) and then of course also the VRT which will remain at €200 as long as the car is >30 years old

    So if the car was GBP1800, transport €800 and €200 insurance, you pay 10% (€2000+€800+€200) = €300 import duty and then 21% (€3000 + €300) = €700 VAT and €200 VRT

    So €4200 in total for your GBP1800 car!

    Ouch..

    Looks like Irish classics will be more expensive too then..


  • Registered Users Posts: 2,492 ✭✭✭ Car99


    unkel wrote: »
    I think it is 10% import duty over the cost of the car + cost of transport to get it here + costs of insurance to get it here and then 21% VAT on top of the lot of that (tax on tax) and then of course also the VRT which will remain at €200 as long as the car is >30 years old

    So if the car was GBP1800, transport €800 and €200 insurance, you pay 10% (€2000+€800+€200) = €300 import duty and then 21% (€3000 + €300) = €700 VAT and €200 VRT

    So €4200 in total for your GBP1800 car!

    I would think that would be worst case scenario for an £1800 car . You could save on shipping and insurance from the UK if you made the effort.
    I wonder will it be complicated process clearing customs would the services of a handling agent be required to smooth and speed up the process for a normal punter.
    I used a handling agent anytime I brought a car from Japan to make the process pain free for a reasonable fee.


  • Moderators, Category Moderators, Motoring & Transport Moderators, Regional East Moderators Posts: 58,831 CMod ✭✭✭✭ unkel


    Car99 wrote: »
    I would think that would be worst case scenario for an £1800 car . You could save on shipping and insurance from the UK if you made the effort.

    How much do you think it would cost to have someone pick up the car in the UK, ship it over the Irish sea, then bring it over to customs here in Ireland, arrange for all formalities and once done, pick it up and then drop the car to you at your home in Ireland? I don't think €1000 for all that including insurance is that extreme?

    We'll never go back to the days, like when a few years ago, I got a €20 flight, a €65 ferry, a sandwich and a bottle of water at a service station in the UK and a glass of wine on the overnight ferry back, bringing in a car for the grand total of about €95 :p

    "Wind is Ireland's oil" - An Taoiseach, 25/05/2022



  • Registered Users Posts: 2,492 ✭✭✭ Car99


    unkel wrote: »
    How much do you think it would cost to have someone pick up the car in the UK, ship it over the Irish sea, then bring it over to customs here in Ireland, arrange for all formalities and once done, pick it up and then drop the car to you at your home in Ireland? I don't think €1000 for all that including insurance is that extreme?

    We'll never go back to the days, like when a few years ago, I got a €20 flight, a €65 ferry, a sandwich and a bottle of water at a service station in the UK and a glass of wine on the overnight ferry back, bringing in a car for the grand total of about €95 :p

    €1000 for all that if you could get someone to do it would be fine. I was thinking you could save money by doing as you did back in the day and pay a handling agent to look after the customs side at the port alot of which can be done in advance of the vehicle and you arriving at the port.
    I paid €100 to look after the handling on and off the ferry plus customs clearance a number of years back on a car from Japan in Dublin port.


  • Registered Users Posts: 5,796 ✭✭✭ Isambard


    kadman wrote: »
    Ouch..

    Looks like Irish classics will be more expensive too then..

    cars already in the Republic will go up in value


  • Registered Users Posts: 4,900 ✭✭✭ Bigus


    Isambard wrote: »
    cars already in the Republic will go up in value

    Not when the ar5e falls out of prices on classics in the UK , it was also a safety valve here for an irish price floor which will now evaporate . Unsold irish classics were shipped over in bulk, during our hard times and even up to recently in smaller numbers.

    I can already see on eBay , project classics not meeting reserves and not selling in UK , in 18 months , I bet you’ll see pristine cars making buttons over there. The hard part is going to be how to decide which ones to jump on and when.


  • Moderators, Home & Garden Moderators Posts: 4,743 Mod ✭✭✭✭ kadman


    If the UK market as a source of classic cars for a potential buyer
    is now gone because of the change in vat,tax,and customs,

    then the only market is Ireland or an eu country, then I can only see prices rising
    here.

    Of course only time will tell.


  • Moderators, Category Moderators, Motoring & Transport Moderators, Regional East Moderators Posts: 58,831 CMod ✭✭✭✭ unkel


    Bigus wrote: »
    it was also a safety valve here for an irish price floor which will now evaporate . Unsold irish classics were shipped over in bulk, during our hard times

    All true.

    The value of Irish classics still here is extremely low at the moment though, our hobby was decimated because of the recession. People were forced to put there cars up for sale, with little to no demand (here), with many good cars going back across the pond and the value of remaining cars collapsing. And the current crisis didn't help when people (like myself) driving a lot less than before really couldn't justify keeping classic cars as well as their normal cars

    I can't really see them go down in value even further unless we get a recession that's even worse than the last one (which was the worst in nearly 100 years). Can't see it happening. Or should I see I sure hope it won't be happening!

    "Wind is Ireland's oil" - An Taoiseach, 25/05/2022



  • Registered Users Posts: 2,492 ✭✭✭ Car99


    kadman wrote: »
    If the UK market as a source of classic cars for a potential buyer
    is now gone because of the change in vat,tax,and customs,

    then the only market is Ireland or an eu country, then I can only see prices rising
    here.

    Of course only time will tell.

    LHD cars will have to become a considered option and as someone who drives a LHD classic car here it's not a problem. I would buy another LHD without hesitation.


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  • Registered Users Posts: 3,093 ✭✭✭ hi5


    Car99 wrote: »
    LHD cars will have to become a considered option and as someone who drives a LHD classic car here it's not a problem. I would buy another LHD without hesitation.

    Same here, into American cars mostly.
    Autoscout is worth a look.

    https://www.autoscout24.com/lst/chevrolet?sort=price&desc=0&ustate=N%2CU&size=20&page=1&priceto=100000&pricefrom=500&fregto=1990&fregfrom=1944&atype=C&


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