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bigduckontax
bigduckontax, Accountant
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Hi Im in Ireland about to purchase a van in England. The

Customer Question

Hi
Im in Ireland about to purchase a van in England. The price for round figures £15000 + vat do i still need to pay the vat on this, even if the van is for perment export ?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
Here is the basic UK Gov advice to vendors on the subject. I assume that you will be collecting the vehicle and driving it to the ferry for shipment.
'Collection by customer
If your customer arranges to collect the goods from you, you’ll need to be sure how and when the items are leaving the UK, and what evidence of removal they will give you, before you agree not to charge VAT. If you have any doubts, it’s advisable to take a deposit that’s the same as the VAT that would be charged. If they give you the evidence that the goods have left the country within the time limit, you can refund the deposit.'
Full details of the rules are here:
https://www.gov.uk/vat-exports-dispatches-and-supplying-goods-abroad
This being an UK tax advice site I cannot comment on the Irish side of the transaction. However, Citizens Informntion [Irish Government web site] has the following guidance:
'In general, all vehicles brought into Ireland are subject to Vehicle Registration Tax (VRT) and must be registered with Revenue. If you are moving to Ireland or are already living here and you are importing a car or other vehicle, you will need to do 4 things before you can drive your vehicle in Ireland:
Pay Vehicle Registration Tax (VRT) (unless you are exempt)
Get new vehicle registration plates
Get motor insurance
Pay motor tax
All motorists are required to carry a valid driving licence with them at all times when driving in Ireland. Driving licences include full licences, international driving licences and Irish learner permits.'
The following further information is relevant:
'VAT
If you are importing a new car from another EU country you have to pay VAT (Value Added Tax), usually when registering the car. A new car means a car that has been in service for 6 months or less, or has been driven for 6,000 kilometres or less. The VAT is payable even where you have paid VAT in the other country.
If you are importing a new or second hand car from outside the EU, VAT (and customs duty) is payable. Customs duty is paid when the vehicle first enters the EU, at the point of entry. You must have proof of payment of this when you are registering the car in Ireland - see 'How to apply' below.'
The whole caper appears to me complex and a tad expensive!
I do hope I have opened your eyes to some of the hoops through which you will have to jump.