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Calculations On Buying A Brand New Car From The UK

  • 08-12-2021 6:39pm
    Registered Users Posts: 246 ✭✭ paul7g


    As per title, can anyone confirm what variables you need to take into consideration when buying a brand new car in from the UK, and the import process?

    I'm aware that if you bring in a used car since Brexit, you have to pay - 1. VRT (circa 34%), 2. VAT (23%), 3. Import Duty (10%).

    However, am I right in saying that you don't need to pay the VAT or Import Duty, if ordering a car from a UK dealership, with first registration being in Ireland.

    Can anyone confirm the variables and what the process would be, thank you.


    Post edited by LIGHTNING on


  • Registered Users Posts: 72,776 ✭✭✭✭ colm_mcm

    Keep in mind the VRT is on the OMSP (as in the Irish value) and not the invoice price.

    im not sure you’d actually save anything on most cars.

  • Registered Users Posts: 246 ✭✭ paul7g

    Thanks Colm.

    I’m not doing it to try and save… it’s more of a case of availability on a particular car.

    Hopefully someone on the forum knows the answers to the above, or has done it before.

  • Registered Users Posts: 2,499 ✭✭✭ Car99

    If you buy from a Northern Ireland dealer you would avoid the VAT and Import duty definitely.

  • Registered Users Posts: 246 ✭✭ paul7g

    Yep, but again the car cannot be bought in Northern Ireland. If the car is bought new (in the UK), the same conditions should apply as if you were buying from Northern Ireland... i.e - you are not subject to VAT and Import Duty.

  • Registered Users Posts: 3,382 ✭✭✭ goochy

    Cars are cheaper in Ireland before vrt and vat as the importers have to ' subsidise' prices to make up for vrt - remember when cars were being bought here new and exported to ni and mainland UK in the late 90s and 2000 ?

    Unless you are going for a high end car with loads of factory options chances are it will cost a lot more than if bought here .

    What car is it ? A 6 month old car much better option

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  • Registered Users Posts: 4,427 ✭✭✭ Charles Babbage

    Where is the car made? Import duty will be payable if it is required, the fact that the car is unregistered will not affect this. Then the VAT and VRT are after that.

  • Registered Users Posts: 72,776 ✭✭✭✭ colm_mcm

    I think in practice it wouldn’t be sold unregistered.

  • Registered Users Posts: 2,499 ✭✭✭ Car99

    Why do you think a new car bought in the UK would not incur mport duty on arrival in the EU?

  • Moderators, Science, Health & Environment Moderators Posts: 17,401 Mod ✭✭✭✭ Sam Russell

    Import duty is payable at 10% if the vehicle has a UK cert of origin, otherwise 10% duty charged on invoice price. The problem is that EU cars must pay the duty, but UK cars, like the Nissans built in Sunderland, do not. I have no idea how you can ensure the vehicle qualifies for zero duty.

    VAT is not payable in the UK if the VAT is still attached to the vehicle - that is the seller is VAT registered and that is it is a new car or an ex-lease car. If it has been sold to Joe Public, the vat is not recoverable. VAT in the UK is charged at 20%, so a new vehicle costing £24,000 will cost £20,000.

    Irish VAT is charged at 23% of invoice price plus shipping cost. To not be liable to VAT vehicle must be over 6 months old and have over 6,000 km on the clock (irrespective of its age) - both apply.

    VRT is payable on the OMP as per usual, the rate depending on the car.

    So the car costs £24,000 list. Lose the VAT so now £20,000 Ship it to Ireland - say £250. £20,250. Convert to € 23,700. Add 10% duty - €26,000.

    Now say VRT rate is 15% - and new price in Ireland is €40,000 - so VRT is €6,000. So cost is now €32,000.

    [Edit - forgot Irish VAT] Add Irish VAT at 23% of the landed cost - 26,000 @ 23% so add €6,000 so now cost is €38,000.

    However, if VRT rate is 30%, the price comes to €38,000. plus €6,000 so €44.000.

    How is the warranty affected - is there any, or the dealer after sales - where do you go with problems? For example, VW offer 2 years warranty EU wide, but third year is only in the country of sale.

    I have picked numbers to make the calculations simple, and real figures will change the result. Now it looks as if it might be worth doing, but the numbers I have used are not real. Would a UK dealer give you a good deal? It has to be a good deal to be worth the risk, and it is risky.

    Post edited by Sam Russell on

  • Registered Users Posts: 3,382 ✭✭✭ goochy

    I just thought of a more serious issue , some manufacturers won't let you buy a new car in a foreign country. Years ago you could buy a new car in any country you want but manufacturers have stopped that . They don't want grieve from their local distributor about people buying new cars cheaper overseas. I am not making this up

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  • Registered Users Posts: 491 ✭✭ Speedline

    You are leaving out irish vat in your calculations. It's on all UK mainland imports now since the start of the year. Otherwise everything you say is correct.

  • Moderators, Science, Health & Environment Moderators Posts: 17,401 Mod ✭✭✭✭ Sam Russell

    I did indeed forget the Irish VAT and have edited the post. [Thanks to Speedline].

    Bearing in mind, I chose figures to make the sums easier, so it is unlikely that that costs would be cheaper, but it is possible. Some manufacturers do reduce the cost of cars to dealers here compared to those in the UK, but I have no idea how many do and by how much they currently do this.

    I have imported cars from the UK before Brexit, but only when I was getting a significant saving, or could not source that particular model here. The last one had to be driven to get up to 6,000 km to avoid Irish VAT even though it was well, well, over 6 months old.

    Now, with Brexit, the sums are much more complex. Also EVs get a subsidy from the Gov, and might not qualify if imported. Dealers need to register new cars to get kickbacks from the marque so would be unwilling to sell unregistered. Warranty is a major problem as well. Lots of barriers to this kind of deal.

  • Registered Users Posts: 3,382 ✭✭✭ goochy

    As said I am even sure if dealers will be allowed sell a brand new car to a ' foreigner ' - pre reg might be a good option.

  • Registered Users Posts: 1,159 ✭✭✭ kanuseeme

    10% DUTY is avoidable, if the car is made in the UK and meets rules of origin, also if the car is made in EU exported to the UK and returned to the EU with in 3 years and has no major work done to it, e.g repainted, extras added in the UK. See returned goods relief ,


  • Registered Users Posts: 50,137 ✭✭✭✭ bazz26

    I think a certain percentage of the vehicle's components have to be make in the UK to qualify the vehicle as being produced there.

  • Registered Users Posts: 388 ✭✭ tommybrees

    Sounds like some amount of hassle.

    Is it really worth the bother

  • Registered Users Posts: 1,159 ✭✭✭ kanuseeme

    The UK vehicle manufacturer has to provide this information from January 2022 anyway, another brexit benefit(lmfao). The EU cars are easier, you will need a customs broker.