New scheme to cut the cost of UK vehicle imports

April 28, 2023
New scheme to cut the cost of UK vehicle imports UK import prices reduced
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Changes in the cost of importing a car from the UK will come into force on May 1st 2023. Under a new UK scheme, if you buy a UK vehicle for £12,000 to resell in Ireland the cost of the vehicle will reduce to £10,000 as the HMRC will pay the importer a £2,000 allowance.  

  
Since Brexit the taxes involved in importing vehicles from the UK to Ireland increased because customs duty and VAT needed to be paid in addition to VRT. This made many UK cars too expensive to import. This will now change with a new scheme available from the HMRC (the UK’s revenue commissioners and customs) which will see a VAT-related payment being made to a dealer who buys a second hand vehicle in Great Britain for resale in Ireland. 
 
From May 1st if you buy a VAT margin vehicle in the UK it will be treated as if there is 20% VAT in the sales price (even though there is no VAT). For example, if you buy a vehicle for £12,000 then the HMRC will pay you £2,000 provided it is for resale in Ireland and sufficient records are kept. HMRC have indicated they will issue payments around 3 months after purchase.  As a further example, a BMW 530e purchased in the UK for £15,000, would get a payment of around €2800. 

Assistance and more information can be found at independent vehicle registration website, vrt.ie
 
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