From 1 January 2021 vehicle imported from Great Britain are liable to:
Customs duty, if applicable
Vehicle Registration Tax (VRT)
VAT at the current standard rate.
If a person imports a car from the UK to Ireland, VAT on purchase becomes payable at 23%.
Any vehicle imported from the UK into Republic is required to complete a customs declaration.
Custom Duty is 0% if the vehicle is originated in the UK.
Duty is 10% if the vehicle originated outside the UK.
For example, if a car dealer sells a car in Ireland that was imported from the UK (Assuming vehicles qualifies Zero Custom Duty) Still a cost of VAT applies at the rate of 23%. Say the Car sale price is 20,000 Euros. This means there is a VAT element in it worth 3,739 Euros making it Dear for the dealer to pay this VAT means eating the viability of importing. Previously Car dealers had to pay on the second-hand UK imported cars VAT on Profit margin which is changed since the Brexit hence full VAT of 23% on the price of the car is required to be charged.
If you are a motor dealer and need help in compliance with Taxes for second-hand car transactions, contact us or fill the form below.
Phone: +353 1 44 28230
Mobile/WhatsApp +353 85 1477625