UK Car Imports after 1st January 2021

bottle

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So it seems that there is 0% Customs Duty, with 21% VAT payable. Following on from Roker’s comment above, can the UK VAT be refunded before / after Irish VAT is paid.
 

Leo

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So it seems that there is 0% Customs Duty, with 21% VAT payable. Following on from Roker’s comment above, can the UK VAT be refunded before / after Irish VAT is paid.

You would need to address that with the UK authorities, but will likely differ for new and used vehicles. You can buy new for export without paying VAT there. For second hand though, most dealers only pay VAT on the profit margin which they are very unlikely to itemise on the invoice they provide you. There are a few companies specialising in exporting second-hand cars that qualified for 0% VAT on initial purchase.

Don't forget to factor in the NOx charges.
 

bottle

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Cheers, it will be interesting to see how it all works out. I see that pre 2021 registered NI cars are exempt from VAT and Customs Duty, so would just have to sort out VRT and NOx. It really is a shame that the government continues to charge such high VRT rates on new cars bought in Ireland.
 

Baby boomer

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It really is a shame that the government continues to charge such high VRT rates on new cars bought in Ireland.
VRT is a shame, full stop. It is an import tax by another name and should not be permitted under EU Single Market rules. Those of us who are old enough can remember the bad old days when the Irish Government imposed excise duties (as well as Vat) on everything from alcohol and tobacco to TVs, VCRs and of course cars. (TV dealers over the border used to offer special models for the 'Free State' - something to do with different UHF / VHF systems IIRC.) Customs officers patrolled border roads to enforce this penal taxation on the shoulders of those already burdened with a 65% marginal income tax rate plus all the trimmings in PRSI and miscellaneous levies.

Maastricht was supposed to change all that. As citizens of the EU, we had the right to import tax paid goods from anywhere in the EU for personal use without suffering any further taxation. And so it came to pass, customs posts became tumbleweed, and we merrily brought back wine on the ferry from France, cigarettes from Spain, VCRs from Belfast and much else besides. Better still, Irish retailers emerged from their cozy hiding place behind the government skirts of protectionism and started to compete on price and quality. And, guess what? They actually made a go of it. Lower prices drove sales and profits. Win win.

Sadly, all was not sweetness and light. The penny had dropped in Government circles that Ireland's bloated public spending was disproportionately reliant on bleeding the motorist dry. And so the shameful special plea was made to Brussels for a "derogation" from Single Market rules for cars. Shamefully Brussels acquiesced in denying Irish citizens the full benefit of the Single Market. Excise duty on cars was abolished but swiftly reborn as VRT, the bastard child of our government's insatiable appetite for taxpayers' money and EU appeasement. It was to have been a temporary little arrangement but somewhere along the line that was quietly forgotten about. The Irish motorist remains fleeced long after we thought economic freedom was at hand.
 

bbound

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Not sure about low income taxes?

For an average earner, VRT adds on a large percentage to any run of the mill car. That's why you see a dull selection of cars in most of irish towns and cities, no-one wants to pay extra thousands on top of the car price.

VRT is a scandal and brexit on top of it will make it much tougher for irish residents.
 

Sadim

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164
if VAT was paid in the UK should it not be refunded when exporting to Ireland before the Irish VAT is paid?
I would be curious to know that one too. It seems like a double charge to Vat, both in the UK and EU
 

Baby boomer

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Playing devil's advocate, is it not an effective means of taxing those who can afford it? The Irish model is higher consumption taxes on spending allowing for lower income taxes, very low property taxes, no water charges, etc.
No. It's a terrible tax in every way. It drives up the price of all cars for everyone, at all income brackets, whether they can afford it or not. Irish people at any given income point will be able to afford less of a car than our European cousins. We thus get lower spec models, we keep them longer, we can afford less regular maintenance and the Irish car fleet is older, of poorer quality and less safe than it otherwise should be.

We also miss out the opportunity to have overseas dealers competing with Irish dealers and offering prices that benefit from economies of scale and disintermediation. Cozy for the Irish motor industry of course who are more than happy to collude with the government on this one while pretending to rail against excessive motor taxation. Notice the way they run ads highlighting the "dangers" of self importing a car from UK/NI while filling their own used car lots from that very source!

As for higher consumption taxes allowing for lower income taxes - are you serious? We have a marginal tax rate of 40% (plus the usual trimmings) on an income of less than 90% of the average industrial wage! That's not low!! Anyway, the whole thing is a sham. It's based on the pretence that VRT isn't a consumption tax and is merely a registration fee. That just happens to be a percentage of the pre tax price! It is exactly the sort of inefficient and market-distorting tax that the Single Market was designed to eliminate and mostly has. For everything except cars, it would seem.
 

Zenith63

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the Irish car fleet is older, of poorer quality and less safe than it otherwise should be.
Ireland has the newest car fleet in Europe after the UK and Austria at 8.4 years, the EU average is over 10.

Firstly I do agree that Ireland should not have the exemption to EU rules it has. But a large part of your argument seems to be that the tax should be removed/reduced so we can drive fancier cars and replace them more often, if you applied the same argument to iPhones, watches, other luxury goods or even houses I'm not sure you'd find too much sympathy for this particular line of reasoning.
 
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Leo

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Given the state of public transport outside the cities, I'm not sure a car can be classed as a luxury item. Many people rely on them to get to/from work.

They're like biscuits, they're not all luxury, but a lot of them on the roads here are.
 

bbound

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Ireland has the newest car fleet in Europe after the UK and Austria at 8.4 years, the EU average is over 10.

Firstly I do agree that Ireland should not have the exemption to EU rules it has. But a large part of your argument seems to be that the tax should be removed/reduced so we can drive fancier cars and replace them more often, if you applied the same argument to iPhones, watches, other luxury goods or even houses I'm not sure you'd find too much sympathy for this particular line of reasoning.

For me, its not having the best new car on the road but having a choice to buy what I want. Anything older than 2008 and we are paying massive annual road tax and also high percentage of vrt on top.
I think you are missing the point of the other poster. The vrt takes away the choice of cars.
 

bbound

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They're like biscuits, they're not all luxury, but a lot of them on the roads here are.
Just pop over the border or over the water and you will see a much wider choice of cars on the road. And more luxurious. I wouldn't class a brand new kia for example as luxury just because its new. A 10 year old jaguar/mb might fit that bill but you will pay extortionate rates of vrt and car tax.
 

Zenith63

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The vrt takes away the choice of cars.
Taxes on houses mean you get less of a house here than in some other countries, taxes on iPhones mean you choose a lower spec version than you might in another country etc. I understand that higher taxes mean there is less choice, the other poster seems to be arguing that VRT specifically is unfair/unjust because it has this effect, it is not.

There are plenty of other issues with VRT, no need to invent specious ones (our "old fleet" being another example).
 

inflation

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35
They're like biscuits, they're not all luxury, but a lot of them on the roads here are.

problem is that even the own brand biscuits have a hefty VRT charge
 

ATC110

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408
If VRT was abolished other taxes would be increased or new ones created. With overly generous welfare rates and out of control public sector pay, the revenue has to come from somewhere
 

Karen boyce

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Can anyone help me here, I purchased a car in uk early December, and I got it examined by nct and was told I would receive a message by text if cost , I rang on the 23rd ad I haven’t received text by then and was last day of holidays, I was giving a code and was told it was ready for payment as was on computer. I went to brt office to pay but the system was down. I the. Received the text first day of reopening 4th jan at 9am. I was told by dealer and vrt price it was 5.600 e , but I got charge the new brexit price of 10,700 I’m still sick and can’t get no where I did appeal no getting nowhere, did this happen anyone else ?
 

meepman

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104
Can anyone help me here, I purchased a car in uk early December, and I got it examined by nct and was told I would receive a message by text if cost , I rang on the 23rd ad I haven’t received text by then and was last day of holidays, I was giving a code and was told it was ready for payment as was on computer. I went to brt office to pay but the system was down. I the. Received the text first day of reopening 4th jan at 9am. I was told by dealer and vrt price it was 5.600 e , but I got charge the new brexit price of 10,700 I’m still sick and can’t get no where I did appeal no getting nowhere, did this happen anyone else ?

Hi,

I would have thought the vrt price would be from when it was imported back in 2020. What date did you go into the vrt office for car examination?
That's how it normally works as I have imported a car in the past and as it was not listed on the vrt site I had to wait 5 days for them to supply the price via phone. However the value is taken from the date of import not from when the vrt contact you.
Are they charging you the new vrt rates including nox or the old 2020 vrt rates? Brexit has no affect on that except if duty has to be paid but I am certain that is a separate payment.

regards
 
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