VAT on 2nd hand UK imported car

[yella]

I am shocked to find the local tax office are asking for 21% VAT on top of 25% VRT for an import. The car is 8 months old and has about 2600 miles on the clock. I used the VRT calculator to work out the cost before purchase. Despite giving the Web form the registration date and mileage it did not flag the car as being liable for VAT. Surely this would be easy enough to do. I now notice in the small print there is a note about VAT in some circumstances but nothing specific. I hope there is grounds for an appeal - I would not have purchased if this had been made clear.

 

[RS2K]

If it's 6 months old and has 5,000 miles or more recorded VAT doesn't apply afaik.

 

[RonanC]

The rules governing motor vehicle taxation distinguish between NEW and USED cars.

NEW cars - vehicles of under six months or vehicles with less than 6000km on the clock, purchased in another Member state will be subject to VAT in the vehicles country of registration, this country... The seller of the vehicle must prepare an invoice exclusive of taxes and you must pay the VAT in your home country.

USED cars - cars aged more than 6 months or with over 6000km on the clock will be taxed differently, depending on whether the transaction is bewteen private persons or involves an intermediary. In the first case no VAT is payable. In the second case the seller will invoice you with the VAT on his profit margin. Therefore no VAT is payable when entering Ireland and registering the vehicle here. Only VRT is payable.

 

[Frank]

Thats doesn't sound right.

I was under the impression there was no VAT on a car over 6 months and x number of kilometers. not sure on the mileage.

 

[yella]

The x kilometers appears to be 6000. What annoys me is none of the .ie car sites selling UK cars point out that there could be a liability for VAT on nearly new models.

The garage I bought from do a large amount of business in Ireland, advertise on Irish autotrader and yet they failed to point out VAT.
The revenue VRT online form could easily be upgraded to show VAT if the calculation is that simple. I didn't think to look at the small print.
I am seriously thinking about selling the car back into the UK. With VAT & VRT the cost is getting very close to the 2007 brand new on the road price
in Ireland which is ridiculous for a 8 month old car. If there was a way to claim back the 17.5% UK VAT then that would make it just about acceptable (otherwise it would be double VAT).

 

[tufty1]

I did it before going the opposite way when i was living in the uk. I bought a car here and exported it to the UK, i did'nt pay the VAT here when i got it from the dealer. Although i did have to pay the VAT when i brought it into the UK. If the reverse applies, then you should'nt have paid your UK dealer the VAT. Maybe give him a call back and ask for it back? You only pay the VAT once.

 

[RonanC]

The x kilometers appears to be 6000. What annoys me is none of the .ie car sites selling UK cars point out that there could be a liability for VAT on nearly new models.

The garage I bought from do a large amount of business in Ireland, advertise on Irish autotrader and yet they failed to point out VAT.
The revenue VRT online form could easily be upgraded to show VAT if the calculation is that simple. I didn't think to look at the small print.
I am seriously thinking about selling the car back into the UK. With VAT & VRT the cost is getting very close to the 2007 brand new on the road price
in Ireland which is ridiculous for a 8 month old car. If there was a way to claim back the 17.5% UK VAT then that would make it just about acceptable (otherwise it would be double VAT).

read my post....

USED cars - cars aged more than 6 months or with over 6000km on the clock

the car you are buying is more than 6 MONTHS old... therefore if you are buying from a dealership in the UK they will sell the car to you inclusive of VAT on the profit margin. No VAT payable when entering Ireland. If you buy from a private person you dont pay any VAT. No VAT when entering Ireland.