Guide to Importing a Car into Ireland
If you plan to buy a car outside the country with the intention of bringing it to Ireland, then it’s important to be aware of the additional costs and requirements involved so that there are no nasty surprises.
Disclaimer: The process of importing a car into Ireland has seen a lot of flux and confusion since Brexit reared its head in 2016 and the rules and guidance are continuing to evolve. It can be quite challenging trying to understand this area and there are still some finer details where clarity is still needed. Below we have tried to distil the most important information into an understandable format. Please consult Revenue.ie for the most up-to-date and most detailed information if you are considering importing a car.
VAT
VAT will have to be paid on a car if it is considered new. This applies even if VAT has been paid in the host EU country. A car is considered 'new' if it has been supplied six months or less after the date of its first entry into service or it has travelled 6,000 kilometres or less since it was first presented for registration in the host country.
It is more likely that any car you are importing won’t be considered new, but will still however, be subject to Vehicle Registration Tax (VRT), as are all imported cars both new and used.
Vehicle Registration Tax (VRT)
VRT must be paid on all imported cars (with some minor exceptions). All vehicles must be registered within 30 days of their date of entry. Financial penalties may result if this is not done.
It’s very important to research this area to get some idea of how much VRT you might pay as charges can vary hugely depending on the vehicle etc. To calculate the VRT due, Revenue determines the value of your car in what is known as the Open Market Selling Price (OMSP). The OMSP is the value of your car in Ireland, not in the country where you bought it. Revenue provides an online VRT calculator.
If the OMSP of the vehicle is not on the VRT calculator, Revenue will then calculate the value based on other criteria such as UK and Irish trade magazines. They will not offer an estimate prior to purchase of a car. This is where buyers need to tread carefully and do the research as some people have been unexpectedly hit with large VRT bills.
The National Car Testing Service (NCTS) registers vehicles on behalf of Revenue. To register a vehicle, you need to make an appointment with the NCTS within 7 days of bringing the vehicle into the State and then have it registered within 30 days of bringing it into the State. Once registered you can then get your plates from any motor factor.
Importing Cars From the UK
There are a plethora of online car trader site operating in the UK. Just a few example of the many are Autotrader, Motors and Cazoo. If you intend to physically view cars then it’s probably worth considering that a trip across the water will more than likely incur some accommodation costs compared to a day trip to Northern Ireland. Not to mention additional time involved.
Whichever route you decide to go it would be worthwhile conducting a thorough vehicle inspection by a qualified professional e.g. using the RAC Vehicle Inspection Service which is relatively cheap and good value for money. Also, it would be advisable to get a vehicle history check.
From Northern Ireland
Most used cars in Ireland arrive via the UK but there are major differences if the car is bought in Northern Ireland and these differences can result in significant savings for the car buyer.
On 21st January 2021 Brexit negotiations officially came to end. The resulting agreement meant that Northern Ireland gained ‘special status’, effectively coming under EU trade rules. This continued as a bit of a ‘grey’ area for some time while the complex implications were worked through but now there is clarification from Revenue:
‘A vehicle that has previously been in use in NI can be registered for Vehicle Registration Tax (VRT) in the State without liability to additional Customs Duties and import Value-Added Tax (VAT). Proof will be required that the vehicle has been in private ownership for a reasonable period of time.
Proof that the vehicle was previously in use in NI prior to purchase includes:
- a copy of the V5C showing the last registered keeper in NI and a date of registration to that keeper
- a Ministry of Transport (MOT) test history in NI.
In simple terms if you buy a used car from Northern Ireland, you do not have to pay VAT or customs duties (once proof as per above is provided).
There’s one other important point to be aware of. If you are buying from a dealer in Northern Ireland and the car has not been in use in Northern Ireland then you need to obtain a copy of the ‘Customs Declaration’ lodged in NI, which clearly identifies the vehicle being registered. If you don’t have this, you will run into problems when trying to register.
Importing From Great Britain (excluding Northern Ireland)
Since the UK (excluding NI) is now seen as a ‘third country’ by the EU, there are additional charges which must be paid directly by you the buyer before the vehicle is registered:
- Customs Duty
- VAT
Also, a Customs Declaration must be completed.
Motor Tax and Insurance
It always worthwhile factoring the cost of this into your budget calculations and getting some quotes from various insurance companies.
Importing a car can make a lot of financial sense and many people have successfully used this method to acquire a car. It’s obviously more complicated than buying direct from an Irish dealer but if you research it properly and get the full picture of what’s involved it could save you a lot of money.
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