VAT on old / new car?

K

klecko74

Guest
I'm heading over to Ireland on a work permit for a year from the U.S. and I'm still trying to get all the Tax issues down.

Is there any VAT on new / used car purchase?
 
There's no VAT payable on a used car purchase.

On a new car, the price will be inclusive of VAT and VRT, I don't think I have ever seen any car prices (excluding commercial vehicles) quoted ex. VAT or VRT in this country.

Delivery and 'related charges' are usually the only extras.
 
My error obviously. Apologies.

You can calculate the VAT/VRT take on new cars - for a 2 litre+ engine €20k before tax is equal to €34600 after these add ons.

Sickening isn't it?
 
To clarify, no VAT is payable on used cars if they are imported from another EU country.

VAT is payable on used vehicles imported from outside the EU.
 
CCOVICH said:
VAT is payable on used vehicles imported from outside the EU.
Click to expand...

Unless you have already owned it for at least 6 months. So you can import your own car tax-free in most cases.
 
Just to clarify that VAT is payable by a garage on the sale of a secondhand car...the price you pay is inclusive of VAT. The garage must pay over 21% vat on the sales proceeds. They will have claimed an input credit for the purchase of the car (usually its a trade in) So the net effect is the vat on the profit they have made. In cases where they sell the car for less than the purchase( trade in) price the vat on the difference is payable to the Revenue.

So if you buy a second-hand commercial vehicle and are registered for VAT you can claim the VAT back
 
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