VAT on Vehicles

VAT on Vehicles from outside the EU

When you import a vehicle from outside the EU (UK, Japan & other countries), you are required to pay VAT in addition to customs duty. VAT is currently charged at 23% in Ireland. It doesn’t matter if VAT has already been paid in the country you are importing the vehicle from e.g. if you import a vehicle from the UK you are required to pay VAT even if VAT has already been paid on the vehicle in the UK.

Purchasing a Vehicle in the UK without VAT

If you purchase a VAT qualifying vehicle in the UK for export to Ireland and you do not have a place of business and are not a UK resident then the seller can apply a zero rate of VAT on the vehicle you are purchasing.

For more details information on the conditions that apply please go to https://www.gov.uk/guidance/vat-on-goods-exported-from-the-uk-notice-703

Not all vehicles in the UK are VAT qualifying, typically a VAT qualifying vehicle is either a brand new vehicle or a vehicle that has been only owned by a business for business purposes for its lifetime. Therefore UK VAT has never been paid on the vehicle and if the vehicle is exported a zero rate of UK VAT can be applied. As stated above you are still required to pay VAT of 23% when you import the vehicle to Ireland.

Postponing Payment of VAT on an Imported Vehicle.

If you are VAT registered in Ireland then you can choose to postpone the payment of VAT when submitting your customs declaration when importing a vehicle to Ireland. If you choose to postpone the payment of VAT you are required to include the VAT in your VAT return, failure to do could lead to a VAT underpayment and associated interest and penalties.

You will need a customs agent to complete the customs declaration on your behalf. At CustomsDeclaration.ie we have successfully completed many customs declarations with postponed VAT for customers who have imported vehicles from the UK.

If you require a customs declaration go to Request a Customs Declaration.

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