Export from UK then re-import to Ireland via non EU

Masch8933

Looking for peoples thoughts.

I currently live in Switzerland which would be considered outside the EU. I am due to return perhaps in the next 3 months however, my wife (who is Swiss) will remain on for another few months to sell our house etc

I have the idea to buy a car in the North or in England pretty soon and bring it to Switzerland and import it there paying all the relevant taxes (4% and 7.7%) and registering it in my wife`s name, then after 6 months of being there we would bring it back under her name as she would then be moving over officially then. Therefore, being exempt of VRT and perhaps VAT.

Anyone see any issues?

CiniO

Just to make sure that you keep all necessary paperwork for VRT exemption.

Also I think car needs to be used for that 6 months. So revenue might ask you for proof of insurance and maybe fuel receipts, etc...

That brings another issue of using RHD car in Switzerland for 6 months - just make sure that your wife is comfortable driving RHD car for 6 months in Switzerland.

Also headlights are of different design for right hand traffic and left hand traffic. That means that firstly lights from RHD car are going to be dazzling oncoming drivers. This can be prevented with beam bender stickers, but in my experience, their abilities are pretty poor on modern LED lights. Some moderns light units can be actually flattened or even converted between RHD/LHD in car settings, but that purely depends on car brand. So just to keep that in mind, and make sure that you won't be actually obliged by law to change the light units for LHD while it's registered in Switzerland, which might cost thousands in case of modern LED light units.

Jim2007

I can’t say about the the Irish side, but in Switzerland the car will need to be modified to meet Swiss standards, head lights, emissions tests etc… and presumably reverted to meet Irish requirements upon moving home.

Also customs are not stupid, they could simply decide you were purposely avoiding charges and challenge your claim.

CiniO

https://www.boards.ie/discussion/comment/119629042#Comment_119629042

Could they actually do that (challenge the claim for vrt exemption), even when all legal requirements for VRT exemption are fulfilled?

It's not really like it says in the legislation, that you can only do it if were caught up with a car when moving residency, as opposed to purposely preparing for it with the right car.

I can't really see how this could be challenged.

bazz26

Customs are a section of Revenue. If Revenue approve the VRT exemption then it must have met all criteria for that exemption.

OP, if you do get the VRT exemption then as part of that you cannot sell the car for 2 years after it's registered on Irish plates. If you sell it before that then you will be liabe for VRT.

Esel

https://www.boards.ie/discussion/comment/119629208#Comment_119629208

I thought you could sell after 1 year, not 2?

GSBellew

You will be taking a car into the EU from outside the EU, even if you can claim the VRT exemption for change of residence VAT and potentially Duty at 10% will apply on import

Jim2007

https://www.boards.ie/discussion/comment/119629072#Comment_119629072

The Revenue challenge peoples actions all the time it’s part of their job! If they were to challenge it, then it would go to a hearing where it would be decided if you were nearly taking advantage of the legislation as it was intended.

User1998

https://www.boards.ie/discussion/comment/119629418#Comment_119629418

Import charges are covered in a VRT exemption

bazz26

https://www.boards.ie/discussion/comment/119629408#Comment_119629408

Your right, it's 1 year not 2.

CiniO

https://www.boards.ie/discussion/comment/119629476#Comment_119629476

I'm thinking that they could challenge it of course, but once all legal requirements for VRT exemption are fulfilled, then what grounds could they use to refuse the exemption?

I hardly can imagine revenue claiming that person purchased car abroad 6 months before moving back to Ireland purely just to use VRT exemption as a reason for refusal. Nowhere in the legislation it states that it's prohibited to use the exemption purposely with the right car.

cml387

It seems a lot of hassle having your wife driving around Switzerland in an RHD car for six months just to save a few bob.

Masch8933

https://www.boards.ie/discussion/comment/119637542#Comment_119637542

to save over EUR20,000!

To be honest, I cant see how revenue have any legal standing if the car is imported according to the correct taxation laws

Del2005

Have you figured the CHF12 to CHF15 per 100kg tax? You may save €20k on VRT but a 1.5t vehicle will be CHF18k to CHF20k to register in Switzerland as they don't have a free trade agreement with the UK

https://www.bazg.admin.ch/bazg/en/home/information-individuals/road-vehicles-and-watercraft/importation-into-switzerland/vehicles--cars-.html#accordion_21212411441648543149066

Masch8933

https://www.boards.ie/discussion/comment/119654224#Comment_119654224

Switzerland does have a free trade agreement with the UK, it was along the EU lines and the day Brexit became effective the new UK/Swiss FTA became effective.

To import a car to Switzerland, you must pay 4% of what you paid for the car and then on top of that another 7,7%. I know numerous people who have done as such from the UK

It is quite a common thing done especially with cars from Germany as you reclaim 17% VAT on a German car as soon as you export it, so have a net gain on tax also.