Will Ireland push the EU to scrap VAT on car imports from the UK

cnocbui

https://www.boards.ie/discussion/comment/120171052#Comment_120171052

The government don't want you driving a Golf R or a Honda Type R, so these prices are achieving their aim. On friday, I couldn't believe my eyes when I spotted a newish Civic Type R. Of course it had UK plates.

User1998

At the end of the day there are still thousands of cars to choose from at any point in time and there is no ‘crisis’ as to speak whereby people can’t buy cars. There have been price increases and supply constraints just like everywhere else in the world and the market is already beginning to re adjust slightly from that but we will never get back to pre brexit level of choice supply and price.

Furze99

https://www.boards.ie/discussion/comment/120171029#Comment_120171029

The government can change VAT rates as they wish. They like to hid behind the pretence that the EU ties their hands but that's demonstrably not true. Just recently we see VAT taken off Covid test kits, then VAT restored, then rescinded again. Newspapers rated at 0%, down from 9% in last budget and so on.

kaahooters

like youd be getting the car transfered over anyway.

Neilw

There’s a vat refund scheme on the cards.

https://www.gov.uk/government/publications/second-hand-motor-vehicle-export-refund-scheme/second-hand-motor-vehicle-export-refund-scheme

User1998

https://www.boards.ie/discussion/comment/120178086#Comment_120178086

This article is more recent. It seems only VAT registered traders can avail of the scheme, and personal imports are exempt. But it will still help with supply and should lower prices here

https://www.gov.uk/guidance/claim-a-vat-related-payment-if-you-buy-second-hand-motor-vehicles-in-great-britain-and-export-them-to-the-eu-for-resale

Jim2007

https://www.boards.ie/discussion/comment/120173652#Comment_120173652

Except that the regulation of the vehicle market does not fall into the category of a national interest, healthcare and the freedom of access to information do, which means other members with car manufacturing in their state will object to such moves.

reubenreuben

They should do something because ireland will run out of certain cars or cars will just keep increasing in value and we will all be driving ancient cars which isn't good for the environment.

When you change a policy or rule there's always something that is affected negatively.

Goose81

https://www.boards.ie/discussion/comment/120178195#Comment_120178195

Did you read that before you posted it.. according to that they get 1/6th of a VAT back, reading it. What good is that when a car seller who can actually claim that back gets 1/6 vat on a 20 grand VAT bill

Arnout

No, it's 1/6th of the purchase price, representing the VAT part.

Since the VAT rate in the UK is 20%, a claim can be made for 20/120th or 1/6th of the purchase price, so when a car has a purchase price of £ 12,000, an amount of £ 2,000 VAT is included and that £ 2,000 is what can be reclaimed.

User1998

https://www.boards.ie/discussion/comment/120190298#Comment_120190298

Of course I read it. What are you talking about?

Capt'n Midnight

https://www.boards.ie/discussion/comment/120179657#Comment_120179657

AFAIK EU regulations mean manufacturers must offer right hand drive vehicles.

The other thing is that internal combustion is being replaced by Electric Vehicles so some people won't do a lot of work for a permanent fix to a temporary problem.

zg3409

Used prices in NI are higher for many cars than ROI so even with no import taxes it won't be a simple fix to the problem. In the past we took in diesels the UK public did not want.

I expect some sort of a deal to be Ironed out between EU and UK. The UK manufactures a relatively high amount of cars along with EU so there is vested interest on both sides.

Prices may have peaked as supply is being restored, except in the EV area where the demand is higher than supply and manufacturers are only making higher end models due to battery and car electronics shortages as they are limited in the number of cars they can make, so they are making the more expensive models.

GSBellew

There is not a chance in hell that there will be a derogation of VAT on the entry of used vehicles to the EU, that'd open a VAT free route into the EU market for any used car over 6 months old / 6,000 km

creedp

https://www.boards.ie/discussion/comment/120199904#Comment_120199904

Agree it's not going to happen as Brexit has been a godsend for Irish dealers especially as we can't import from any other EU market.

As a matter of interest though where would all these used cars come from?

mickdw

Once supply in UK is back to normal levels, we will get value here again. The vat is not so much of an issue for traders bringing in cars once they can get vat qualifying cars.

Duty will be payable in many cases but that's not huge.

Supply of new cars here and UK is the biggest issue imo.

creedp

https://www.boards.ie/discussion/comment/120200872#Comment_120200872

Was talking to a dealer during the week and he said they are still bringing in UK cars, half his used car stock are UK imports. He's happy enough as Brexit has meant private importing has all but dried up so much more demand for his UK cars

User1998

https://www.boards.ie/discussion/comment/120200832#Comment_120200832

Nonsense. Its been far from a godsend. Plenty of dealers gone out of business because of it.

creedp

https://www.boards.ie/discussion/comment/120201126#Comment_120201126

Some dealers have lost the plot with pricing, Those who haven't will be fine

reubenreuben

https://www.boards.ie/discussion/comment/120201031#Comment_120201031

So a cartel for the dealers then!

creedp

https://www.boards.ie/discussion/comment/120211295#Comment_120211295

I wouldn't call it a dealer cartel as they didn't introduce Brexit, but certainly Brexit has resulted in a reduction in competition for the used car market

se25

Have imported 10 cars or so over the last 25 years from the UK.. still a few bob savings IMO. Looking at 2016 BMW 2 Series Coupe..here are circa: Euro 21k+, in UK £10k. £10K = Euro 11k + 33% taxes 14500 euro with 3500 VRT + nox+ 350 expenses = 18,500 a saving of 1500 or so. I rounded up a bit but could be even 2 grand cheaper..Better specked, nicer colour options, lower mileages with lots of history..am I missing out on something here..appreciate the hassle involved but 2 grand not to be sniffed at.

Thanks..

Capt'n Midnight

https://www.bbc.com/news/business-58993851

Research by the motoring group suggests the price of the UK's most popular cars have increased up to 57% since 2019.

Until the UK get behind the Northern Ireland Protocol properly the EU won't let them benefit from the Horizon Program worth nearly €100 billion. So I can't see then bending over backwards on this.

User1998

https://www.boards.ie/discussion/comment/120230252#Comment_120230252

The taxes equate to 35.3%, and they are calculated on the car + freight. So unless your driving the car home yourself it would be €11k for the car + €500 freight + €4,050 import tax. Even if you got the ferry back it would still only be €350 or so less. Then you have your customs broker fees, tax, nct etc. That’s another €300 or so.

I’m sure you’d get one from a private seller here for around €18k. Just a waiting game really since none are for sale right now.

morgan2009

Any update on this please thanks

Jim_Hodge

https://www.boards.ie/discussion/comment/122051818#Comment_122051818

What's to update? Ain't gonna 'appin.

goochy

not in governments interest to encourage used imports - simi will lobby them to protect main dealers here

mac167

I don't mind VAT, it makes sense, 23%, fine, I would have to pay that too if I'm buying some stuff from Amazon UK. VRT? Now that's the one we should advocate to remove / reduce, or at least make it make sense with the nonsense OMSP calculation.

User1998

https://www.boards.ie/discussion/comment/122052811#Comment_122052811

If OMSP’s were correct VRT would be in some cases more than twice as high as it already is. I regularly VRT cars that have an OMSP of say €5,000 but in reality they are worth more than twice that. There are very few cars with overinflated OMSP’s.

morgan2009

I was looking at a car in the North at £17 but it was a uk car last year so the vat an vrt is a bit to much I had heard it was maybe gonna be scrapped truth behind this