Pay UK VAT on import of business car?

M

macmac

Guest
Hi,

I am a sole trader, registered for VAT. I am thinking of buying a car, for business purposes, from a Northern Ireland VAT registered car dealer. I assume I do not pay the 17.5% VAT on the import as I am registered in Ireland. Is this correct?

Thanks,

Mac
 
As in Ireland you can not claim back the vat on a passenger vehicle only commercial therefore you may not be entitled to have the NI invoice without vat.
 
You would give the car dealer in the north your vat number. He does not charge you vat on the sale.
However you would be caught for VRT. you better check out revenue .ie for vrt cost before you commit as it can be quite expensive
 
howareya said:
You would give the car dealer in the north your vat number. He does not charge you vat on the sale.
Click to expand...
If this happens, you can expect a phone call or visit from your friendly Revenue official looking for the VAT that was claimed inappropriately on the car. Revenue make a point of charging interest @1% per month plus penalties where an individual underpays tax by incorrectly claiming reliefs or exemptions. I do not know if this would apply here.
 
You actually don't claim vat at all. by giving the dealer your vat number he doesn't charge you the vat. this can be done. you can't claim vat on a car in Ireland anyhow. It just saves you paying across vat to northern Ireland.
 
howareya said:
You actually don't claim vat at all. by giving the dealer your vat number he doesn't charge you the vat. this can be done. you can't claim vat on a car in Ireland anyhow. It just saves you paying across vat to northern Ireland.
Click to expand...

Wrong, wrong, 100% wrong.
 
Why is it that, i recently done accounts for an individual who sold alot of machinery to Ireland and UK. for all sales to UK no vat was charged the vat number of buyer was placed on the any uk inv and it was returned as an export on a vat return.

Now I also came across where individuals are buying vehicles from the north. No vat was charged by the northern person as the purchaser was vat registered and therefor only had to give his vat number to the seller.

I think we need a 3rd party to sort this out. I would have taught i was correct in saying the above. however i am open to correction.
 
On a separate issue. if you are buying a car through the business. It might be worth looking at the BIK rules. revenue have become very sticky about this area. It could cost your business alot of money.
 
I know when you purchase goods/services from countries in EC that you do not pay VAT, ie they do not add VAT to invoices, the same applies if you sell goods/services to EC countries.

Different rules apply,

IF new car, the VAT is calculated along with the VRT. Thats all I know about this option.

IF second hand car, the invoice would be issued by a dealer in uk with out VAT, ie you would pay for the car VAT free, then have to account for the VRT.

However, you would still get stung for the VAT at the Irish rate, as all intra EU purchases are recorded on your VAT return in box E2, you would have to include the cost of the Vehicle here, and then self account for the VAT, normally you include the VAT in T1 and again in T2, having no effect the the liability.

As you cannot claim VAT on cars, you include the vat in T1, but dont get to claim in T2.

if you want more details on new option, call VAT office on 090 6421875

So, just buy a Van,
 
If you're buying a new vehicle from an EU member state the dealer can sell it to you without local VAT if you can prove that you are taking the car out of that country immediately, i.e. it will not be registered there. You would then import it and register it here and you have to pay the VRT plus the Irish VAT when you bring it in to the country. It is very unlikely that this will work out cheaper than buying the car in ireland in the first place.
 
You must log in or register to reply here.
Back
Top