I’m buying a car in Belfast, a 2014 Mini Paceman with 25,000 miles. What is the custom declaration I need from the dealership there? From CF, Louth
I have bought a car from a dealer in the North which was tested lately. It’s a 2001 car. It was imported to Northern Ireland in 2017. Do I need that person’s name and address for the inspection? It’s a diesel car. From John K, Cork
I live in the UK but was born in Dublin and I now wish to return home to Ireland. I would like to bring my Ford Fiesta home with me. I purchased it approx two years ago and it’s an eco-friendly car. I would like to avoid any large taxes to bring it home, so can you please advise? It’s been in my name since the purchase. From Barry C in the UK
As ever, when it comes to bringing a car in from outside the State, the Republic’s Byzantine tax system doesn’t make life easy for anyone. However, in these three cases, the bumps in the road are somewhat smoother.
In the cases of both CF from Louth and John K from Cork, the fact that they’re bringing in cars from Northern Ireland, rather than Britain, means that they can avoid paying two significant charges – VAT and customs duty.
For all cars registered in Britain post January 1st, 2021 (when the Brexit process became official), anyone importing them into Ireland has faced the additional hurdles of having to pay both Irish VAT (at 23 per cent) and customs duty (usually charged at 10 per cent of the combined actual purchase price and shipping costs) on top of Vehicle Registration Tax (VRT).
Because Northern Ireland has a special position with the Republic, Britain, and the EU (technically it exists, like Brigadoon, in all three simultaneously), car buyers in the Republic can at least avoid paying VAT and customs duty assuming that the car being imported conforms to the Windsor Framework on trade and tariffs between Northern Ireland, Britain and the EU.
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This sounds complicated, but it’s basically just a form that needs to be filled out by the dealership you’re buying from at the time of the car’s arrival in Northern Ireland. Or, in the case of a private sale, Revenue will want to see MOT and road tax history in Northern Ireland, and for the car to have been owned and in use there “for a reasonable period” (the precise limits of that period having never been technically defined).
By buying from a reputable dealership CF should be in the clear when it comes to paying VAT and customs duty. Just ask for the Windsor Framework declaration paperwork when inspecting the car, and all should be well.
In John K’s case, the task is yet simpler. The car he’s looking at was brought into Northern Ireland before the January 1st, 2021, cut-off date, so it’s technically of EU origin. Therefore no VAT or customs duty applies. As far as needing the seller’s address and details, while it’s not technically necessary, it’s a good idea to have some sort of receipt or bill of sale with those details.
In any case those details will be included with the V5C registration document that proves the car’s ownership. There’s a change of ownership form within that document which you and the seller should fill out and send off to the Driver and Vehicle Licensing Agency (DVLA) in Swansea at the point of purchase (it’s best to do this with the seller, rather than leaving it to trust).
Barry C’s task is in one way simpler again. He owns the car, he’s bringing it with him, and therefore not only do VAT and customs not apply, but neither does VRT which is a massive bonus. However, there’s some treacherous paperwork to fill out along the way.
So, the requirements for Barry C are: that the car be his personal property (we’ve ticked that box), and have been in his possession for at least six months before the transfer of residence (TOR), the technical term for this system (also ticked).
Barry will have to fill out a TOR application form and supply “full supporting documentation” which can include proof of change of address, proof of change of employment, and proof of entry date into the State. He’ll also need personal identification.
There’s a wrinkle, though: if Barry chooses to have his Fiesta registered on the day of inspection, which is likely given that it’s his car and he probably wants to use it, then he has to pay the normal VRT charge up front and recover that through the TOR process, for which – as with all things Revenue-related – there’s no set time frame.
The VRT payment will be refunded within five days of that TOR relief being granted, but there’s no telling how long the actual individual process may take.
That said, you can start the TOR process before you actually make your move, which helps, or you can leave the car in the UK for up to 12 months before finalising the TOR set-up.
