Car Rental Companies
Trade Cars Ireland for Car Rental Companies
Brexit has now resulted in a change in the second-hand car market in Ireland.
Three-out-of-four cars sold in Ireland are second hand, according to the Society of the Irish Motor Industry. The market is made up of Irish trade-ins and imported vehicles.
The market peaked in 2019, when almost 109,000 cars were brought in from Britain and Northern Ireland combined, with the new car market in Ireland a casualty of that new import trend, plummeting to 113,000.
However, since Brexit you now have to pay the UK VAT rate of 20% on cars being imported from there, on top of the Irish VAT rate of 23%.
Brexit changed the landscape, with a far more complicated process for motorists to digest.
Proof that vehicles were properly imported into the North will be required for vehicles first registered in Britain. If this proof cannot be provided, the individual or business importing the vehicle into the State must make a customs declaration, pay customs duty, and pay Vat based on the import value of the vehicle immediately prior to registration
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According to Irish Revenue, those importing vehicles from Britain are required to complete a customs declaration; pay or account for customs duty of 10% if applicable; and pay Vat at 21% prior to presenting the vehicle for registration. VRT is also payable on such vehicles.
Imports post-Brexit are likely to be down, due to both the pandemic and changes to the VRT bands and Nox charges that were introduced on January 1. This will not only impact on the supply of used cars, but it will also do little for Ireland's ambitious EV targets.
Car dealers in Ireland say it now works out cheaper to import European cars from Japan, who like Ireland have right-hand drive vehicles, as they are not subject to the 20% VAT charge, unlike the British cars.
When importing a new vehicle from the North, motorists must pay Irish Vat at the time the vehicle is registered, even if Vat has been paid in the North. A refund of the Vat in the North can be claimed from the dealer upon a paid receipt of Vat in the Republic.
“Following Brexit, knowing that we have a constant supply of high quality stock, means our customers are always happy.”
-Brendan Tomlin, Satisfied Customer
