Importing from the UK - definitive guide (Q and A)

For a used car selling in England, wouldn't VAT already have been paid on the car in the UK at time of original purchase? Why would an NI dealer have to pay UK VAT again?

Similarly for those here who have or are considering buying a car from England in their NI-based family member or friend's name, waiting 3+ months & then importing it to Ireland & paying VRT; are you saying the friend/family member also has to pay UK VAT at time of purchase or import to NI? Doubt it.

if it is solely held by the dealer in Northern Ireland you will not meet the ad hoc 3 month test and certainly, on the facts as presented, not succeed.

Butnot double vat which you.might end up paying if privately importing.

What double VAT are you referring to?

My understanding; for a private import from England to NI, UK VAT is payable & already included in the sale price (the price advertised by the English dealer, for example). Then, after 3+ months private ownership in NI, for a private sale from NI owner to a Rep of Ireland individual VAT is not payable (per Revenue rules). ie pay VAT once, not double. Open to correction here.

Anyway, private sale aside, based on the Revenue link referred to above & subsequent posts (assuming accurate), an NI dealer could 1) import from England to NI by paying UK VAT at point if purchase, register it in NI via Customs Declaration, 2) sell to me for export to Rep of Ireland & 3) reclaim the VAT. I pay VRT. Job done. Am I missing something here?

and that will involve a VAT charge on transfer from GB to NI unless they are goods solely for sale in the U.K. market which they will not be in this case. GB and NI are now essentially two different VAT jurisdictions. Windsor Framework sets out a modification of the EU procedures to simplify the position for goods which are to be retained in NInand essentially allows those to be imported into NI without additional VAT. Not the case for goods designated to be transferred onwards.

NI is part of the EU for customs duty and VAT purposes; if the goods are imported into the EU then VAT and duty must be paid at that point. The Windsor Framework provides a “green lane” for goods to remain exclusively within NI. This car is clearly not one of those. Duty and VAT (UK rate not Irish rate of VAT) would have to be accounted for on entry into NI. This is a cost which might marginally be lower than a direct import into Ireland (as NI VAT is 3% lower) but would not be cheaper once all dealer costs were accounted for.

The Windsor Framework provides a “green lane” for goods to remain exclusively within NI. This car is clearly not one of those. Duty and VAT (UK rate not Irish rate of VAT) would have to be accounted for on entry into NI.

If that's the case, there's nothing mentioned about VAT in Revenue's page for the scenario where the vehicle was bought in accordance with the Windsor Framework. Only that it "will require proof that the vehicle has been imported to NI in accordance with the requirements of the Windsor Framework. A copy of the Customs Declaration lodged in NI, which clearly identifies the vehicle being registered, must be provided.

So are you saying that I must pay UK vat at the point of purchase from the NI dealer, on top of the dealer's advertised price (assuming I pay the asking price)? If so, any links to sources confirming that?

If you have Wise (Transferwise) they are the best for exchange rate and once you have the €24k or so in the account it's a matter of exchanging it immediately and then you will be transferring from a UK account which it usually immediately to the dealers account.

the NI dealer must pay NI VAT (and customs duty if applicable) when it is transferred from GB to NI if the car is not going to be retained in NI

How would an NI dealer possibly know at point of import to NI that the car is not going to be retained in NI? They've no crystal ball re who will approach them to buy the car.

Scenario: NI dealer imports it from GB to NI under the Windsor Framework for sale in NI, therefore paying no NI VAT, declares it with NI customs, gets the NI Customs Declaration. Puts the car up for sale on the NI market, an individual from the South buys it from them at the asking price, the NI dealer gives a copy of the NI Customs Declaration to the buyer. The buyer registers the car in ROI, gives a copy of the NI Customs Declaration to NCTS & pays VRT & NOx. No ROI customs or VAT applies.

Doesn't that scenario satisfy the recently updated wording on Revenue's site?

Anyone else here on this thread have knowledge (not opinion) on this to validate my understanding?

Vehicles that were not previously in use in NI

Vehicles bought from NI dealers that have not previously been in use in NI (for example, vehicles that had been in use in Great Britain (GB) prior to being purchased by an NI dealer) will require proof that the vehicle has been imported to NI in accordance with the requirements of the Windsor Framework. A copy of the Customs Declaration lodged in NI, which clearly identifies the vehicle being registered, must be provided.

Which request? Do you mean my original post re asking an NI dealer to register it in a staff members name for 3.5 months that some here thought was nuts? No, Revenue's updated rules re 'Vehicles that were previously not in use in NI' plus the related completecar.ie article that I linked to & quoted a few times appear to negate the necessity for the 3 month registration requirement. However it's clarity on that updated rule which I'm seeking, so I can be sure.

Thanks, that's my intention, though I believe Revenue can take weeks/months to reply & they can be vague in their responses too, so wanted to capture public 'expert' knowledge from experience or otherwise in parallel.

My experience is that they are not vague. They willingly give clarification around legislation when sought, but they will not entertain matters of interpretation. You will be directed to seek you own advice in that regard. Kind of like your doing on Boards right now. 😜

you keep looking at the Irish Revenue site when you need to look at HMRC - strangely that’s the one which outlines the U.K. internal rules. Crystal balls not needed - if cannot assert that will be retained in NI then duty and VAT needless to be paid and can be reclaimed later. The point is that same rule applies to transfers from GB to NI as from GB to RoI except in green lane scenario. In many cases, UK dealers can sell into Ireland without VAT (to an Irish dealer) and that’s how it works easiest. You are trying to find a way to work around the system but you don’t even know which tax authority’s website to look at.