Ireland imposes Brexit charge on imports of vehicles from Britain via Northern Ireland

DUBLIN: Ireland imposes Brexit charge on vehicle imports from Britain via Northern Ireland. Revenue made it clear that charges would be levied on British vehicles imported.

Those who buy a vehicle from Britain were not subject to paying VAT. The VAT was exempted for vehicles that drove less than 6,000 km and vehicles less than six months old. Motorists do not have to pay even a single import duty, they just have to pay the Vehicle Registration Tax (VRT). Even with the VRT paid, motorists could have saved thousands of euros more than what they would have bought in Ireland. So in recent years thousands of people in Ireland have been buying high range cars like BMW, Audi, Mercedes and Volvo.

Vehicle importers from the UK must complete a customs declaration. 10% customs duty is payable, if applicable. 21% VAT must be paid before registration. VRT is also payable on such vehicles.

“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,” the Revenue said.

When importing a new vehicle from the North, motorists must pay Irish VAT at the time of vehicle registration. Revenue also clarified that a refund of VAT paid in Northern Ireland can be claimed from the dealer upon receipt of VAT payment in the Republic.

Although these rules apply to cars imported from the British mainland, the question has been raised as to whether Northern Ireland can operate separately. Revenue has made it clear that it will reject any way for consumers to violate laws applicable to the UK.

Revenue also reminds that vehicles registered in the UK will not be able to be imported into the country via Northern Ireland to avoid these significant changes.

However, there is no change in the existing rules for vehicles registered in the UK after January 1 in Northern Ireland. There will be no customs inspection. It is sufficient to provide VRT for such vehicles. However, VAT is applicable for new vehicles – Revenue said.

Before January 1, Irish motorists flocked to the British market. Some research has shown that high quality cars can save up to €10,000. In 2019, 109,000 cars arrived from the UK via Northern Ireland, while only 113,000 new cars arrived in Ireland.