Q. VAT on imports after Brexit

Garvan

Hi all

Does anyone know how the vat will be worked out on vehicle imports in the new year?

Will it be

VAT at full rate on original purchase price or

VAT at full rate on value of vehicle now or

Difference in VAT between originator country and Ireland?

And will they kill off VRT because if they don't and imports become too expensive they may well kill off the massive revenue stream that imports provide?

Thanks

RG

Cee-Jay-Cee

Garvan wrote: »

Hi all

Does anyone know how the vat will be worked out on vehicle imports in the new year?

Will it be

VAT at full rate on original purchase price or

VAT at full rate on value of vehicle now or

Difference in VAT between originator country and Ireland?

And will they kill off VRT because if they don't and imports become too expensive they may well kill off the massive revenue stream that imports provide?

Thanks

RG

I don’t know the answer but I hope it’s the last one. I hope it kills the full car industry stone dead and maybe then they will have a proper rethink and overhaul our rip off VRT and the stupid 3 tier tax system which will start in January.

Atlantic Dawn

Current vehicle tariff is 10% but that may only be for new cars, then potentially VAT on top of that, then VRT on top of that.

PukkaStukka

What are the current arrangements for importing
used vehicles outside the EU?

Garvan

PukkaStukka wrote: »

What are the current arrangements for importing
used vehicles outside the EU?

That was my next question. Can't really find anything definitive. Seems to be very much, bring the vehicle in, we'll have a look and let you know.....😬😬😬

Mjolnir

Garvan wrote: »

That was my next question. Can't really find anything definitive. Seems to be very much, bring the vehicle in, we'll have a look and let you know.....😬😬😬

You currently pay a percentage which is based on the cost of the car + shipping + insurance during shipping, duties then dependant on the car you'll either get a figure to pay or it may be a car take a skyline for example where the pluck out lotto numbers

User1998

https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/buying-of-goods-online-for-personal-use/buying-goods-from-outside-the-eu.aspx

Isambard

User1998 wrote: »

https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/buying-of-goods-online-for-personal-use/buying-goods-from-outside-the-eu.aspx

"Note

From 1 July 2021 import VAT will:

be payable on all goods entering the EU, irrespective of their value
and
always be collected, irrespective of the amount due."

not seen that one before.

User1998

Yeah its a new one, now you can buy stuff from China and the sellers usually under value it, or write “free sample” or “gift”, obviously stuff like that won’t work anymore

Esel

No VAT if importing from Northern Ireland (provided over 6 months old and over 6000km on clock).

https://www.revenue.ie/en/customs-traders-and-agents/brexit/brexit-for-individuals/importing-a-vehicle-from-great-britain-gb-or-northern-ireland.aspx

Del2005

Esel wrote: »

No VAT if importing from Northern Ireland (provided over 6 months old and over 6000km on clock).

https://www.revenue.ie/en/customs-traders-and-agents/brexit/brexit-for-individuals/importing-a-vehicle-from-great-britain-gb-or-northern-ireland.aspx

How long will the stock of 2nd hand cars last up there if we are buying up all their 2nd hand stuff to avoid VAT? Then they'll have to import from Britain and pay VAT

bazz26

And watch the values of used original NI registered cars up there rocket as a result.

User1998

NI stock is about to get a lot more expensive:

https://www.google.ie/amp/s/www.bbc.com/news/amp/uk-northern-ireland-54967496

Esel

Deleted my post above as it was wrong!

I wonder will a NI 'private buyer' have to pay VAT when buying a UK car?

Isambard

Esel wrote: »

No VAT if importing from Northern Ireland (provided over 6 months old and over 6000km on clock).

https://www.revenue.ie/en/customs-traders-and-agents/brexit/brexit-for-individuals/importing-a-vehicle-from-great-britain-gb-or-northern-ireland.aspx

not yet cut and dried, Revenue have jumped the gun assuming an agreement is reached

The_B_Man

Esel wrote: »

I wonder will a NI 'private buyer' have to pay VAT when buying a UK car?

If I read it correctly, you need to apply online for an EORI number, otherwise the cars can't move, even on the back of a transporter. Then you're limited to something like 6 trips, otherwise you're counted as a dealer and there's extra fees there.
But it might still be cheaper to get one of those dealers who bring cars over for you, and you pay £250 or so.
But in terms of VAT, you'll pay the VAT at point of sale.

Isambard

The_B_Man wrote: »

If I read it correctly, you need to apply online for an EORI number, otherwise the cars can't move, even on the back of a transporter. Then you're limited to something like 6 trips, otherwise you're counted as a dealer and there's extra fees there.
But it might still be cheaper to get one of those dealers who bring cars over for you, and you pay £250 or so.
But in terms of VAT, you'll pay the VAT at point of sale.

i think he was thinking about GB to NI transfers which I'd assume would not carry additional taxes.

The_B_Man

Isambard wrote: »

i think he was thinking about GB to NI transfers which I'd assume would not carry additional taxes.

Ye thats what i'm talking about. I was doing some light reading so may be wrong, but I saw that with all these deals up in the air, it could be that the border is going down the Irish sea, so that NI is still on the EU "system" via some copy and pasting of rules and regs.

But in terms of tax, from my understanding you just pay the full price on the car wherever u buy it, which will include the local VAT etc. The only change will be moving it across the border, which will require an extra piece of paper.

Sure wait and see what happens in 2 weeks. It could change tomorrow, and I may be way off anyway. It'd be a bad judgement to think I know what I'm talking about!

galwaytt

User1998 wrote: »

NI stock is about to get a lot more expensive:

https://www.google.ie/amp/s/www.bbc.com/news/amp/uk-northern-ireland-54967496

Or not.

If they cars they have in stock now don't shift before December 31st, then maybe they'll have to drop their pricing to factor in the now RoI situation. RoI buyers are The market for a lot of those guys.

A lot of the cars in NI stock is stuff bought at auction in GB and they'd lose their shirt on it trying to move it back there.

I'm following one car in a small trader in NI atmo, and it's been dropping for the last few weeks, as the crunch date gets closer...

millington

10% of the purchase price including shipping for customs, VAT is then calculated on that total price including customs. Then VRT after that.

This is how it works for Japanese imports, no reason the UK will be any different.

Isambard

millington wrote: »

10% of the purchase price including shipping for customs, VAT is then calculated on that total price including customs. Then VRT after that.

This is how it works for Japanese imports, no reason the UK will be any different.

well that depends if a trade deal is done and what it agrees to. I can see a lot of discontent in the Uk as in that instance they'd have to abide by EU rules, with no vote, and wouldn't really have left to the full extent that many people expect them to

PukkaStukka

There's a part of me which thinks the government will try do something to keep the importing of used vehicles going as best it can. The VRT returns they get are very lucrative and they do need the €€€