Importing a car from NI

M

MichaelR

Registered User
Messages
18
Hello,

I am looking to import an electric car from NI. It was first registered in NI in August 2023 and the mileage converts to just over 6000 km so it appears that the requirements for no customs duty and no VAT are satisfied. As the car is electric the VRT is zero. It had one private owner from new as per V5C. (The owner was, as I understand, a finance company and this was a lease car, so it factually was being used, not sitting as a demo at a dealer).

However, the Revenue website documents have some ominous claims about cars "brought into NI before May 2023 and bought from NI before 30 April 2024". I have no way of knowing or proving how/when the car was brought into NI before it was first registered. The dealer says Kia would have been doing that. The dealer also says that the scheme that causes this issue does not apply to this car as it was never registered nor purchased in GB.

Is it safe to buy this car now? Or should I put a deposit on it, ask them to wait, and buy in early May? And are there other pitfalls that I might need to look at?
 
I did ask, will await what they say. However the link says: "Vehicles bought from NI dealers which had not previously been in use in NI (for example, vehicles that had been in use in Great Britain (GB) prior to being purchased by an NI dealer) will require proof of Customs Declaration."

This vehicle was in use in NI and was never in use in GB so this does not seem to apply?

Also as this dealer never imported the car, where should they get this copy?
 
@WizardDr I did read that, and there is one thing that worries me there. "Vehicles that were moved to NI prior to 1 May 2023 will also be subject to additional VAT requirements if imported into the State" and that's a full VAT payment of 23%.

The car was first registered in NI in August 2023, but when was it "moved into" NI? It wasn't made there!

The page also says: "Vehicles purchased after 30 April 2024 can be registered in the State without being subject to these additional requirements. These vehicles will still require proof of Customs Declaration or proof that the vehicle has been in private ownership in NI for a reasonable period of time."

So, if I can't be certain, the safest option seems to be to put a deposit on it then wait until May. While there is probably no Customs Declaration, there is the V5C showing the private owner.
 
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:

==

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

==

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:

==

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.

==

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.
 
You should be fine once the V5 has a NI address. I imported a plug-in hybrid back in September from NI, it was pre-registered by the NI dealer and used as a demo car, the V5 had the dealer details on it. I only had to pay VRT at the NCTS appointment (lady there was very helpful and said once the V5 shows a NI address as the first and only owner then no VAT or customs duty due). My parents also imported a car from NI last year, theirs was an ex-lease car and the V5 had the finance company details (NI address). As it was an EV with a value below the VRT exemption, the only charge at the NCTS appointment was the tyre recycling charge (4 tyres - €11.20).
 
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