VAT on car imported from Northern Ireland 6 month age query

DavidAdam

Purchased a car in Northern Ireland. It was registered new in Northern Ireland on 30 May 2022 with NI plate. Its 5 months old with 7,000 km on clock. The car will not arrive in Irish Republic until 10 December 2022. Is it subject VAT on import.? Its ok on mileage at it exceeds 6,000km. But what about 6 months age rule. The car is less than 6 month old when I paid for it on 25/10/2022 but will be greater than 6 month old when it arrives in the Irish Republic on 10/12/2022. Does anyone know which period do I use to calculate the age of the car for VAT purposes.

User1998

When VRT’ing a car from NI it is assumed that the car entered Ireland on the day of purchase. Currently you have no way of proving that the car hasn’t entered Ireland

I think as long as the car is over 6 months old at the time of registration you should be okay, but I’m not 100% certain

Del2005

The vehicle had to have been registered in Northern Ireland before the 31st December 2020 to be VAT exempt.

https://www.revenue.ie/en/vrt/guide-to-vrt/registration-of-imported-used-vehicles/vehicles-imported-from-routed-through-ni.aspx

bazz26

The rule is that if it's less than 6 months old from the date of original registration and/or has less than 6000km on the clock then Revenue will deam it a brand new vehicles and it will be subject to VAT.

However even if you import it in December when it's over 6 months old you will still be liable for VAT and import duty on it as a used car as to avoid both the car would need to have been registerd in NI before 01/01/21 as per the Brexit agreement.

User1998

https://www.boards.ie/discussion/comment/119801033#Comment_119801033

That only applies to cars that were previously registered in mainland UK. OP’s car has never been in mainland UK and was first registered in NI

bazz26

https://www.boards.ie/discussion/comment/119801092#Comment_119801092

Ah right, the 6 month/6000km rule only applies then.

DavidAdam

So is it the date of purchases (25/10/2022) or date of import (10/12/2022) that is used to calculate the 6 month period. The first is less than 6 months which would result in VAT, the second is greater than 6 months and so no VAT.

bazz26

The 6 months rule is regarding the age of the car. So in your case it was first registered on 30/5/22 so it needs to be at least 6 months old and have 6000km on the clock when it's imported to avoid VAT. Revenue may well look for proof of when the car came into the country to determin if it was less than 6 months old when it was brought down South. I don't know what they might look for in the way of proof other than a dated invoice from the selling dealer but they may require more than that especially if it's close enough to the 6 month threshold.

DavidAdam

So can I take it that’s it’s the date the car physically arrives in the State rather than the purchase date that is used to calculate the six month period.?

The invoices is dated in October 2022 even though the car will not be delivered until December 2022.

I have been advised to get a car transport company to collect the car in Belfast and deliver it into the South and to get an invoice showing date of collection & delivery.

bazz26

I have no idea if that would be sufficent or not to be honest.

What would concern me is the gap between date of purchase and date of delivery to the South. That gap could be seen by Revenue as a way of intentionally trying to avoid the VAT liability on the car. I have no idea if they would accept that or not but I'd imagine it has been tried many times before and Revenue tend to not take too kindly to such schemes.

User1998

I reckon as long as the car is 6 months old at the time of registration you’ll be okay. The reason I think this is because you can buy a car with 0km and as long as it has 6,000km at the time of registration you don’t get charged VAT so I assume its the same for age.

I would get the car transported and have an invoice for it just in case tho.

User1998

There are official VRT manuals which you should read up on

Marcusm

https://www.boards.ie/discussion/comment/119802553#Comment_119802553

Not to be too picky Bazz but the relevant date for the supply of goods (in this case a means of transport which is potentially a “new means of transport”) is different from VRT. Although the VAT (if any) due is collected at the time of VRT, the date of supply (which determines whether or not it is “new”) is determined by normal VAT rules and is the earlier of the invoice date or the date on which the car is made available to the purchaser.

DavidAdam

This is from the document issued by the Revenue Commissioners "Tax and Duty Manual VAT and VRT on transactions involving Motor Vehicles"

It is important to note that the operative date of supply, when determining whether a means of transport comes within the time limits, is the date on which it arrives in Ireland. Therefore, if a vehicle is first registered in the EU e.g. France, and it is acquired within six months of arriving in this State and it is subsequently presented for registration, it is the date of first registration in the EU e.g. France by which the date is calculated for VAT purposes. For example:  Where a vehicle is first registered in France on 2nd January and is purchased by a State resident in June and subsequently arrives in the State on 4th July and is presented for registration with 7000km, this is not a new means of transport and therefore VAT is not chargeable.  Also, the point at which the 6000km is calculated is the date it arrives in this State and not the mileage given on the invoice when the vehicle was purchased in France.

DavidAdam

Anyone know of any firms of solicitors or tax consultants who specialise in this area. Reading legislation and understanding it correctly is not always easy.

User1998

Just go to the VRT centre and ask