Buying a tractor in NI

What sort of cost and paperwork is involved with buying a tractor in NI and bringing it down, would want it on the road not just farm.

There's obviously purchase price plus VAT in £, what costs are on our side of the border for bringing it in?

hopeso

I'm not sure of any of the costs, but as far as I know there's a huge difference in bringing in one that was originally registered from new in the North, and one that was imported from mainland UK and re-registered in the North. Something to look into anyway.....

K.G.

If it was registered in the North prior to brexit -Jan 1 St 2021 its just 200 euro vrt fee but if after that it's subject to import vat even if you have vat paid in the North.i m not familiar if you are vat registered but I believe you still pay it but you re allowed off,set it against your vat returns.

Stoned_Rosie

https://www.boards.ie/discussion/comment/121167467#Comment_121167467

So let's say a tractor is 10k sterling + vat and it is a 2010 tractor, what needs to be paid?

Anto_Meath

If you can prove the tractor was on the island of Ireland on or before 1st January 2021 then you pay €200. If you can't then you pay import duty & that could be a few thousand.

K.G.

https://www.boards.ie/discussion/comment/121173018#Comment_121173018

10000x20%vat =12000

£12000×1.16 =13920€

13920x23%import vat is17121€

I not 100% sure of the import vat rate but its 20%+anyways and add you 200 vrt

Edit to add you need a.customs clearance agent too

That's my research but if anyone knows better.(I recently bought up north btw)

Stoned_Rosie

https://www.boards.ie/discussion/comment/121173917#Comment_121173917

Wow so you have to pay vat twice?

A tractor worth 40k sterling + vat would cost a bomb.

funkey_monkey

Should it not be 0% VAT to pay in NI as the tractor is going out of their VAT jurisdiction - if you are VAT registered?

K.G.

https://www.boards.ie/discussion/comment/121175136#Comment_121175136

My understanding is yes if your vat registered it's 0 % vat but I think the import vat is still paid but you offset against the your vat submission s.i think the reason dealers aren't as enthusiastic about English/ni tractors as before is they have to pay the import vat on entry whereas as before they only paid the vat on sale so they had the money before they paid the state whereas now they d have to carry it if the tractor proved a slow seller.but again if anyone knows better.

10 k £ 11600 €

11600 x 23% 14268

We ll say he sells for 16000e + vat

16000x 21% =19680 or3680 invat but he can off set the 2268 import vat against the final vat payment so the final payment for him on sale of the tractor is 1422.

That knocks the idea on it's head for me

K.G.

https://www.boards.ie/discussion/comment/121175093#Comment_121175093

But she might cost the same as a tractor here at lower spec and Condition.only about 2% of farmers here buy new so 90% of tractors have been imported second-hand at some stage

kevthegaff

Does that mean it second hands will increase in value with time

Grueller

https://www.boards.ie/discussion/comment/121176882#Comment_121176882

If they increase any more they will be the same price as new. I ordered a new tractor in 2020, took delivery in 2021. Its mental, but the dealer offered me €8000 more than I paid for it a couple of months ago.

Stoned_Rosie

https://www.boards.ie/discussion/comment/121177842#Comment_121177842

2nd hand will increase because the new tractors increase.

How will people afford 2nd hand 20 year old tractors in 20 years?

anthony500_1

How does one afford a 20 yr old tractor today never mind another 20yrs. Any clean 4wd 100hp tractor with say 5000hrs or less are advertised for sale in the region of 25k+ with something with a loader touching the 35k mark for your standard main brand tractor. It hard justify that knid of spend on smaller farms

K.G.

The way things have gone it seems to be that if you mind the tractor it never looses its value much but the replacement cost goes through the roof.it could be that in 10 years time we could be paying 100k + for a 10 year old tractor with 5000 hrs.i suspect though that we ll see less buying because we d like to in the next few years so demand might drop.

Suckler

https://www.boards.ie/discussion/comment/121178257#Comment_121178257

We're toying with the idea of replacement tractor; I've been looking around but anything decent* its coming in 30-40k mark. So much so that the wife even suggested would buying new not be wiser and knocking another 20-25 years out of it.

*(Decent - I'm being quite picky with brand and models)

limo_100

Hi lads I was just wondering if the UK and Northern Ireland market is finished for tractors then why aren't lads bringing them in from France and Europe instead? I seen tractors advertised over there worth nearly 50K here for 35K in France.