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Importing a classic from NI now

R1_Pete

Hi Guys,

I am strongly considering buying a classic (first one) as an interest in 2021 and something I’ve always wanted to do.

With Brexit and the new rules, can anyone tell me definitively what the current situation is with NI registered vintage imports?

Let’s say I purchase a car privately up north. £10,000 for sake of an example. It’s 30/40 years old.

What charges are liable and how are they estimated? VRT is still not applicable on a vintage car? But will VAT & import duty be due?
If so how is it calculated?

And how is purchase price verified on a private sale?

Cheers
Pete

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ELM327

Isambard wrote: »

and yet Revenue are saying they won't allow it. As far as I can see the only way they can achieve this is by not allowing the car to be re-registered, presumably they will say the car was not "properly imported to NI" as the VAT was not paid coming into the EU area..

This is not their concern, and they have no legal mechanism to inspect or enforce it.

Isambard

That's you opinion, I'm not offering an opinion ,but given that they have said they won't allow it, I'm wondering how they will achieve it

ELM327

"They won't allow it" - must be based on jurisdiction though.
What legal act or requirement grants them jurisdiction to question VAT outside of the state? They have not had this previously, and, as per the terms of the trade deal, NI must be treated as part of the EU. Thus, imports of NI registered cars would be VAT free. VAT between NI and GB is a matter for the UK currently.

reubenreuben

unkel wrote: »

BUT NI seems to have a special status here where this doesn't apply

If you bring a car from the UK to NI you can register it there and not pay VAT. However if you subsequently bring it over to ROI and register it here, you will need to pay VAT

It's GB into NI,

UK. Is England,Scotland,Wales and NI

jetfiremuck

Can anyone verify if assuming theere is a paper trail thats easily followed regarding car history etc. then can it be interperted that if the car (Uk) was in the north duly registered before Jan 1 I think all is good. If from 1 Jan cars that are coming from GB into North then purchased for import here, then its like buying in the Uk and arriving in Dublin with all charges etc.

The fact that Revenue were on the 1pm news today shows that there must have been sharp intakes of breath with the import charges people were expected to pay.

reubenreuben

jetfiremuck wrote: »

Can anyone verify if assuming theere is a paper trail thats easily followed regarding car history etc. then can it be interperted that if the car (Uk) was in the north duly registered before Jan 1 I think all is good. If from 1 Jan cars that are coming from GB into North then purchased for import here, then its like buying in the Uk and arriving in Dublin with all charges etc.

The fact that Revenue were on the 1pm news today shows that there must have been sharp intakes of breath with the import charges people were expected to pay.

What were revenue saying?

Esel

reubenreuben wrote: »

What were revenue saying?

See the link above.

Rodin

This is another money making racket from revenue.

Up until January 2020... the UK was in the EU.
Therefore any cars imported to NI before then were EU sourced. Revenue behaving as if GB was never in the EU.

reubenreuben

Rodin wrote: »

This is another money making racket from revenue.

Up until January 2020... the UK was in the EU.
Therefore any cars imported to NI before then were EU sourced. Revenue behaving as if GB was never in the EU.

NI dealers only paying vat on the profit of GB imported cars hasn't changed from pre brexit days so buying a NI car from a NI dealer and importing into south stays the same. Vrt/nox payable only unless it's a new car.

Unless Irish gov change it with agreement with EU that is.

turbocab

Well fellow car enthusiasts,you can now see how your government treats you,The revenue are basically going to have a field day with this.I feel sorry for any younger people trying to come into the classic car scene.Claasics already registered here are going to go up in value as it becomes prohibitve to import from now on.

Isambard

in fairness the system for importing from the UK is now similar to that from any other third country, in fact it's better because if the classic is UK built, it won't attract Import duty. Not really anything our Government is doing to us.

unkel

turbocab wrote: »

Well fellow car enthusiasts,you can now see how your government treats you,The revenue are basically going to have a field day with this.I feel sorry for any younger people trying to come into the classic car scene.Claasics already registered here are going to go up in value as it becomes prohibitve to import from now on.

I agree with your point, but I wouldn't go that far that it is now prohibitive to import one. You can still import a decent classic car from the UK bought for about £1500 and it will cost you less than €3,000 landed, including import duty, VAT, travel costs and VRT.

hi5

Rodin wrote: »

This is another money making racket from revenue.

Up until January 2020... the UK was in the EU.
Therefore any cars imported to NI before then were EU sourced. Revenue behaving as if GB was never in the EU.

That's exactly how it works, it's the same as when countries join the EU.
When countries like Poland and the other accession states joined the EU in 2004 you could import from those countries without any VAT or duty the day after joining even though no EU VAT had ever been paid previously.
What happened previous to joining or leaving is of no interest.

Isambard

unkel wrote: »

I agree with your point, but I wouldn't go that far that it is now prohibitive to import one. You can still import a decent classic car from the UK bought for about £1500 and it will cost you less than €3,000 landed, including import duty, VAT, travel costs and VRT.

but the cost will be much higher than it was previously and there would be no advantage in buying a UK car as an Irish registered car would cost much the same.

unkel

Can't argue with that!

galwaytt

ELM327 wrote: »

If it's an NI registered car you do not need to pay vat.
There's no mechanism to allow it

Well according to Revenue, if the car is just being 'washed through' NI, they won't allow it, even with NI reg. Otherewise every Tom/Dick/Harry will reg UK cars at an NI address, and think that cures it.

Date of UK sale, MOT date, date last taxed, all easy to check by Revenue.

They just have to 'form the opinion' and that's that, basically. The don't need to 'prove' anything - they hold all the cards.

ELM327

I, like most, would be very interested to see a test case of the above. The legislation of "the deal" was so rushed that I'd doubt there are legal provisions to allow the above overreach.

galwaytt

ELM327 wrote: »

"They won't allow it" - must be based on jurisdiction though.
What legal act or requirement grants them jurisdiction to question VAT outside of the state? They have not had this previously, and, as per the terms of the trade deal, NI must be treated as part of the EU. Thus, imports of NI registered cars would be VAT free. VAT between NI and GB is a matter for the UK currently.

Right, tiny update, after some communication with Revenue on the subject.

My position was this (extract) :
"The principle I'm going on here is that vehicles (imported) here, must have VAT paid in the EU. However, all UK vehicles registered in the UK pre December 31st 2019 do have VAT paid in the EU already. When they were registered (lets take the example of a 2017 car), it had 20% VAT paid in the EU.

The fact that the UK has subsequently left the EU does not diminish the fact it was taxed in accordance with EU regulations and the VAT paid when new (2017). The 'leaving' of hte UK from the EU doesn't materially change that fact, and so consumers should not now be penalised or double-taxed.

This being the case, why should there be any VAT on such vehicles imported here, now ? "

Which brings us to include Unkel's point:

unkel wrote: »

Whatever tax is paid in a country outside the EU (UK, USA, China, etc.) is not relevant for what tax is due here in Ireland.

To which Revenue say:
"The UK’s departure from the EU means that goods from the UK (with exception of Northern Ireland) are no longer considered to be from within the EU or to have had EU import taxes applied to them. This is regardless of their previous status or time of purchase. "

So basically they're saying that EU taxes paid in the EU, are not counted, or are irrelevant, since that State left the EU.

To me, that is retrospective taxation, which is generally considered repugnant (in all senses of the word).

I think there's mileage in my argument, so, again, not expecting anything, have written to the EC about it. .............

reubenreuben

galwaytt wrote: »

Right, tiny update, after some communication with Revenue on the subject.

My position was this (extract) :
"The principle I'm going on here is that vehicles (imported) here, must have VAT paid in the EU. However, all UK vehicles registered in the UK pre December 31st 2019 do have VAT paid in the EU already. When they were registered (lets take the example of a 2017 car), it had 20% VAT paid in the EU.

The fact that the UK has subsequently left the EU does not diminish the fact it was taxed in accordance with EU regulations and the VAT paid when new (2017). The 'leaving' of hte UK from the EU doesn't materially change that fact, and so consumers should not now be penalised or double-taxed.

This being the case, why should there be any VAT on such vehicles imported here, now ? "

Which brings us to include Unkel's point:

To which Revenue say:
"The UK’s departure from the EU means that goods from the UK (with exception of Northern Ireland) are no longer considered to be from within the EU or to have had EU import taxes applied to them. This is regardless of their previous status or time of purchase. "

So basically they're saying that EU taxes paid in the EU, are not counted, or are irrelevant, since that State left the EU.

To me, that is retrospective taxation, which is generally considered repugnant (in all senses of the word).

I think there's mileage in my argument, so, again, not expecting anything, have written to the EC about it. .............

So are we looking at another double taxation strategy with similarity to vrt

Isambard

but it's not just cars, all goods moving into the state from outside the EU area are subject to 21% of the purchase price and delivery. It's up to you to try and get a refund from the UK (good luck with that) , it's not the Irish position that they should make allowances for UK tax as it now of no benefit to us. In fact they have said from July it will be pursued with no exceptions.

Don't be blaming our Government, it's an EU thing and I'm sure the same applies throughout. I expect the UK are doing just the same on EU imports.

galwaytt

Isambard wrote: »

but it's not just cars, all goods moving into the state from outside the EU area are subject to 21% of the purchase price and delivery. It's up to you to try and get a refund from the UK (good luck with that) , it's not the Irish position that they should make allowances for UK tax as it now of no benefit to us. In fact they have said from July it will be pursued with no exceptions.

Don't be blaming our Government, it's an EU thing and I'm sure the same applies throughout. I expect the UK are doing just the same on EU imports.

Yes, but Audi's, BMW's, VW's and many others bought in the UK, are of EU origin. The fact they 'transited' through UK should not be allowed to attract Customs, for a start.

But I agree the VAT is a double-tax, and I think that argument has legs. I just wonder who has the energy to fight it.

Isambard

blame "the deal" , it was for GB made goods only. I agree with you though, a car registered in the UK should be regarded as British irrespective of where it was built.

reubenreuben

Isambard wrote: »

blame "the deal" , it was for GB made goods only. I agree with you though, a car registered in the UK should be regarded as British irrespective of where it was built.

And Irish Gov are part of the EU and were included in the Deal discussions. What a bunch of losers or is that us now?

turbocab

Isambard wrote: »

in fairness the system for importing from the UK is now similar to that from any other third country, in fact it's better because if the classic is UK built, it won't attract Import duty. Not really anything our Government is doing to us.

That may be your opinion ,but i would say most people would not agree.

Chris_Heilong

Hopefully the OP imports one and can let us all know what the actual process ism I have a feeling even those in Revenue do not even know themselves.

Isambard

turbocab wrote: »

That may be your opinion ,but i would say most people would not agree.

it's not an opinion, that's what the situation is. UK is now a Third Country (same as USA Japan et al) with a trade deal which means GB built products are free from Import Duty

kadman

Isambard wrote: »

it's not an opinion, that's what the situation is. UK is now a Third Country (same as USA Japan et al) with a trade deal which means GB built products are free from Import Duty

Are you sure of that. As a boards member recently bought a car cover from the UK, and paid customs duty?

https://www.boards.ie/vbulletin/showthread.php?p=116205786#post116205786

kadman

Presumably if the cover was bought from the North, it would be customs duty free

Isambard

kadman wrote: »

Are you sure of that. As a boards member recently bought a car cover from the UK, and paid customs duty?

https://www.boards.ie/vbulletin/showthread.php?p=116205786#post116205786

I'd be prepared to bet they paid VAT not Import Duty (I wouldn't bet very much though)

kadman

Poster clearly says he paid customs duty.
If it was vat, then he got a Stormforce cover for 50 euros, normally 200.:D