VRT & VAT

Sheikh

I have an interesting situation. Some years back (pre-Brexit), I purchased a car in need of complete restoration from a US based friend. He had purchased the car in London in the 1980's and brought it to Ireland though never reregistered it or even changed it into his name. I have the paperwork for the car but at the time of my purchase, I was unable to VRT it as the VRT folks would not VRT a car that was not driving. The car has since been fully restored and is now worth in the region of €80k. I paid about €10k for it plus a further €30k or so on restoration. What are my options here?

w124man

Do the VRT people have the car on the system?

Sheikh

I don't believe so. Do you think it might make a difference if they do?

kdevitt

Firstly, if it was a non runner - it shouldn't have been allowed to be VRT'd anyway, so you should be fine in that regard. Your only issue I see if evidenceing the date of entry to the state as being prior to Brexit - VAT and duty is not applicable if you can prove the car entered the state prior to Brexit - they generally want a ferry ticket, or proof of storage somewhere. If you can get whoever did the restoration to provide anything saying they had the car in storage that would potentially do. Best bet is to phone them and ask whats going to satisfy them of this - I've generally found the guys at revenue to be pretty helpful whenever I call them. Alternatively, a customs clearance agent like bell.ie might be worth a shot first - I use them for clearing my stuff and they're great to deal with.

Once thats out of the way, you'll have €200 VRT due, and a potential penalty payment for late VRT payment of €200 - which is the maximum they can charge. Last vintage car I cleared was pretty late and no penalty was charged.

Sheikh

Thank you! That gives me enormous hope!

draycottgirlz

Any advice for what (revenue) documentation is required if buying a classic in the UK and driving it over on the ferry?

Thanks

kdevitt

https://www.boards.ie/discussion/comment/121055029#Comment_121055029

You need the full V5, a receipt for purchase, proof of funds transfer / payment for the car - matching the price paid in the receipt and proof of transport - i.e your ferry ticket WITH the registration number of the car on it.

AlienJB

Can anybody advise me on the VAT calculation on a 30 year old UK car? I bought a car 25 years ago, it has since appreciated but is still on UK plates. Current selling price in the UK is approximately 4-5 times what I paid for it. So which price will Revenue use, the original or the current?

galwaytt

https://www.boards.ie/discussion/comment/121366040#Comment_121366040

Your bigger issue may be the fine (which is on a per diem basis) for non-declaring. If it wasn't a 'classic' when you imported it, it may be calculated on the OMSP of the car (then).

If you're selling it, may be better to just sell it in the UK as-is, still on it's UK plates (assuming in/to the UK).

kdevitt

https://www.boards.ie/discussion/comment/121370476#Comment_121370476

Need to step back a second - there was no VAT implication, nor declaration required, for a UK car brought to Ireland pre-Brexit. If its here 25 years, its here pre-Brexit - all that needs to be proved is that is arrived here before then.

VRT has a maximum fine of a €200 for late declaration.

AlienJB

https://www.boards.ie/discussion/comment/121370842#Comment_121370842

Thanks for your input, it's much appreciated because I am a little worried about the potential charges, it hadn't occurred to me that Brexit had such a large impact, I've owned the car for 25+ years and was just biding my time to import it. I ran it on UK plates until about 8 years ago when I parked it up in the garage and it has only done a few km since. It is SORN and untaxed in UK and unregistered in Ireland so I can't drive it in either country in its current condition. It will be 30 next year so wasn't a classic when I parked it and it still has the ferry tag hanging on the rear view mirror from the last time I drove it to Ireland. I'm sure I can find a bank statement showing the payment to P&O but I have deleted the email confirmation. Do you think that would suffice as proof?

AlienJB

https://www.boards.ie/discussion/comment/121370476#Comment_121370476

No intention to sell, I want to keep it and drive it again.

galwaytt

https://www.boards.ie/discussion/comment/121370842#Comment_121370842

Only a max for Commercial (Category C), not cars (Category A) .

From www.revenue.ie:

"Additional VRT is charged when a vehicle is not registered within 30 days.

The additional VRT is added to the total VRT due. The additional charge is calculated by multiplying the total VRT due by 0.1%. An additional 0.1% is added on for every day the vehicle is not registered, from the date of its first entry."

Technically (registration-wise) the car isn't 'here' at all yet, so OP should enquire of Revenue re whether VAT & Customs apply.

kdevitt

https://www.boards.ie/discussion/comment/121371910#Comment_121371910

Vintage car = category C

kdevitt

VRT Category C

VRT Category C vehicles are charged €200 and are as follows:

• larger commercial vehicles (European category N2 and N3)
• agricultural tractors
• buses (European category M2 and M3)
• and
• vehicles more than 30 years old at the time of registration

kdevitt

https://www.boards.ie/discussion/comment/121371910#Comment_121371910

And technically, the car is most definitely here - Revenue literally provided a carveout clause for cars which arrived here pre Brexit.

AlienJB

@kdevitt, thanks for clarifying that.