Can I buy a van without registering for VAT?

Chippy95

Chippy95

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Hi!

I'm an apprentice carpenter working in Dublin.

I'd love to get a commercial van ASAP for convenience to transport materials to and from job sites.

My boss isn't in a position to buy another van and long term this will be of a benefit to me should I start taking on more of my own work.

I'm not registered for VAT or as a business.

Can I purchase this and get it taxed without much hassle?
 
Yes, there is nothing to stop you buying a van. Just as there is nothing stopping me buying a van.

However, as you are not registered for VAT, you won't be able to claim the VAT back on the van. ( I assume a VAT registered business can claim the VAT back.)

Your employer will pay you mileage in the ordinary way.

Brendan
 
Other issues that may arise are taxing and insuring the vehicle.

If it is to be used solely for commercial purposes you can tax it as such on completion of a declaration and having it witnessed at your local Garda Station. Your PPS no. should be inputted on the form in lieu of a VAT number.

If you do intend to use the van for purposes that aren't solely to do with your trade then you may need to tax it privately.

As for insurance, different companies tailor their cover in different ways so you'll need to be careful you choose a policy that suits your overall needs.
 
Zobeda said:
If it is to be used solely for commercial purposes you can tax it as such on completion of a declaration and having it witnessed at your local Garda Station. Your PPS no. should be inputted on the form in lieu of a VAT number.
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Hi Zobeda

That is very interesting. What is the difference in the tax costs for commercial purposes vs. private purposes?

Brendan
 
Hi Brendan

A small commercial vehicle, up to 3000kg unladen , costs €333 to tax for one year, regardless of engine size.

If an owner wishes to change it's use it is charged on the old engine size system rather than the newer emissions based system. Therefore a van with a, say, 1.9l engine would be charged at €673 annually.

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www.gov.ie www.gov.ie

I believe the bigger issue for the OP could be insurance. Providers are not inclined to insure commercial vehicles for social, domestic & pleasure type use.
 
Zobeda said:
Providers are not inclined to insure commercial vehicles for social, domestic & pleasure type use.
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Not an issue. I have a jeep, commercially insured, and it includes social, domestic & pleasure type use. I've never had an issue with it.

I have the jeep taxed privately. I still have to do a DOE every year. This has to be done regardless of whether it's taxed privately or commercially.

As an aside, a new commercial vehicle, can be taxed on line for first taxing, if it's taxed privately. If being taxed commercially, it has to be done it person at the tax office, with accompanying documents.
 
I could have phrased it better in hindsight.

But I do believe it is the case that some insurance companies are reluctant to insure some types of commercial vehicles for s, d & p for some proposers.
 
PaddyBloggit said:
Not an issue. I have a jeep, commercially insured, and it includes social, domestic & pleasure type use. I've never had an issue with it.

I have the jeep taxed privately.
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Yeah, the issue is private use of a commercially taxed vehicle.
 
jpd said:
The original post never mentioned being reimbursed travel expenses
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Which is why I brought it to his attention.

Tommy's caution is important.

But I would imagine a carpenter doesn't just go from home to site and back again. I would guess that he would travel on his employer's business between sites and to builders' suppliers to collect materials.

Brendan
 
PaddyBloggit said:
I don't know why people are having an issue. I don't, and never had.
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But you said yours was taxed privately? Are you now saying it's taxed commercially and insured for private use?

CarZone and other guides suggest you may need to pay BIK in that arrangement.
 
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Leo said:
Are you now saying it's taxed commercially and insured for private use?
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No. It's taxed privately and insured commercially. The OP should do it this way too if he is going to use it for personal use.

I don't use the jeep for commercial gain. It's for private use only. As such, it still has to be insured commercially, but taxed privately.

I'm paying €710 annually for road tax as opposed to €333 if it was taxed commercially.
 
PaddyBloggit said:
No. It's taxed privately and insured commercially.
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OK, so. I presume you just missed the bit about it being taxed commercially when you said you didn't have a problem doing same. Likewise, without any commercial use the BIK element isn't a concern for you either.
 
Paddy is doing it the correct way, where as most people would be still paying the €333 tax. There's no issue with insurance, the issue is the declaration stating you won't use the vehicle for anything other than work use. If a revenue officer spotted you on a school run they could theoretically do you for the van being taxed incorrectly. Ridiculous system.
 
DOE point has been made already

People get caught up on the 333 tax and tend to forget the annual DOE and the pain that goes with that.

Softer naissance once you have a van every friend and neighbour will be looking to move a mattress couch etc.
Many of my weekends were sapped by this, van is gone now.
 
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