I've done more research and maybe I was afraid for no reason. I found a document on Revenue (the forum won't let me post links) and it says:
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The United Kingdom (UK) has introduced legislation to provide for the Second-Hand Motor Vehicle Payment Scheme (SHMVPS). The new scheme will allow car dealerswho are VAT registered in NI and in EU Member States to reclaim the VAT element of the vehicle cost:
- if the vehicle is purchased in GB and
- removed or exported from there for resale in NI or an EU Member State.
The new rules apply from 1 May 2023 and claims can be made from August 2023 onwards. HMRC has recently extended the existing VAT second-hand car margin scheme deadline from 31 October 2023 to 30 April 2024. Further detailed guidance is available from HMRC.
Vehicles bought by NI dealers before 1 May 2023 and sold before 1 May 2024 will be subject to additional requirements if imported into the State. These additional requirements must be completed prior to presenting the vehicle for registration
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I looked up the scheme, found it at a gov uk website (again the forum won't let me post links) , and what do I see:
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If you are VAT registered in the UK, you can use the payment scheme if:
- your business activity involves buying and selling second-hand vehicles or you make occasional purchases of second-hand vehicles for resale
- you buy an eligible vehicle in Great Britain and move it to Northern Ireland with the intention to resell it in Northern Ireland or to the EU
If you buy second-hand motor vehicles in Northern Ireland or from the EU
If you buy second-hand vehicles in Northern Ireland or from the EU, you will not be able to use the payment scheme. You may be able to use teh VAT margin scheme for second-hand vehicles.
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So, the scheme to which the "additional requirements" relate is only about second-hand vehicles bought in Great Britain as second-hand. This vehicle was never bought in Great Britain as second-hand. It only has one owner on the V5C and that's in Northern Ireland, apparently. (Of course I will inspect the V5C before closing the deal).
The "VAT margin scheme" linked is not the one mentioned in the customs document.
Should I exhale so? I did also encounter at least one person in a Facebook EV group who imported a vehicle registered from new in NI in February 2023 and was not hit with VAT.