With the revenue boys you rarely get a choice.... how do you like your pineapple sir?

Donegal TDI wrote: If the money collected, was spent wisely, the pill would be easier to swallow, but he showed us different. Now, if we could get Eddie to run for public office, wouldn't that be something.

Pill? Suppository surely??

ludo wrote: ok. The programm did show the numbers with the VAT paid only once (i thgink it worked out €3g more to buy in the north)

Forgetting about the technicalities of VRT though, the opportunities to save money by importing a brand new car are few and far between since the pre-tax cost in most european countries are higher than here and the amout of VAT and VRT will be the same as a new car here.

From that point of view, the exercise was ridiculous.  It would have been more enlightening to illustrate the point that if you bought a 6 month old used car you could save a significant amount of cash.

An example to illustrate.

A Jan '05 Mondeo 1.8LX with about 12k miles would cost you about £7800 at auction in the UK or maybe £9250 at a car supermarket. 

Bring that back here and the saving versus the current list price for a new one is between €7,000 and €9,000 depending on which way you buy in the UK (after paying VRT but not including flights, ferries, etc.). 

The saving versus the cheapest used '05 Mondeo on Carzone.ie is between €4,000 and €6,000. 

The car still has loads of manufacturer warranty left, which is transferable.  Register it here and it gets a current plate.

Would that have been a more reasonable example? Probably.

Would it have annoyed the car distributors and dealers? Absolutely!

Would it have supported the view of Rip off Ireland?  Definitely.

Edited by Dergside

Just goes to show how apathetic people can be in this country.  Drivers contribute 4b€ to the economy yet we have some of the worst roads in Europe, we also pay tolls for roads where there is no alternative on offer and will toll all the new motorways that are being built, yet the government is widely supported and nothing is done to stop it by the opposition parties or the government themselves.  Man things need to change or the buig companies that were attracted to the cheap tax breaks will start to think twice!

Im just surprised that it is mandatory to pay the VAT on a new car here and if it was already paid in another EU country then you get that back.

The other thing I thought he would mention is the effect VRT has on the safety features within new cars. Many manufacturers downgrade the car (e.g. remove airbags etc.) as otherwise the post-VRT price of the car would make it uncompetitive.

ludo wrote: I think he could have choosen to pay the VAT in NI and he would just have had to pay the VRT in the ROI.

Ludo, because the VRO deem the car to be new (under 6 months old and/or less than 6000km) it will be subject to VAT in ROI - that can't be avoided. 

The point that was missed I believe in the program was that there is a mechanism for getting the UK VAT back.  The Inland Revenue Form VAT 411 may be relevant.  The description is:

New Means of Transport

HMRC Reference: VAT 411

 This form is for registering the removal of New Means of Transport to other Member States of the European Community by persons not registered for VAT.

I think he could have choosen to pay the VAT in NI and he would just have had to pay the VRT in the ROI.

kbannon wrote: Fair enough, then VAT isn't being paid twice. However, why is there a need to pay the VAT here once it was already paid within the EU, even if a rebate is being offered.

There is a possibility that a VAT input credit could have been claimed in the other country before export and the car sold zero rated for VAT purposes as an export.  So, in the same manner that you can't be charged it twice, you have to be charged it once.  It is the final consumer that bears the overall cost of it.

The Revenue don't allow businesses to reclaim VAT on motor vehicles in this country but the Inland Revenue do allow it in the UK.  VAT is then charged on the subsequent disposal (assuming its not zero rated for export).

Edited by Dergside

I think the big thing here is STEALTH TAXES, you cant do anything in this country without first paying normal taxes and then paying all the sneaky little ones that seem to pop up like magic.

kbannon wrote: Fair enough, then VAT isn't being paid twice. However, why is there a need to pay the VAT here once it was already paid within the EU, even if a rebate is being offered? On a €20K (without VAT) car the UK VAT is ~€3500. The Irish VAT is ~€4200. There is about a €700 difference just in VAT alone.

Are cars the only item where you have to pay the Irish vat on them rather than the vat where the car was bought?

I think most people were aware of the VRT costs here, but the new news to me was the planning of private authorities managing the new toll roads in the future.

Are the rumours also true about VRT being abolished on cars above 3.0litre?

Can you imagine going into a dealer and seeing a 330i 20k cheaper than a 325i....

Edited by Toxic