The New Rules for Importing a UK car to Ireland at the best price.
Importing a UK car was simple before Brexit. Go to the UK, buy your car, bring it back to Ireland. No customs needed, just book your VRT inspection and register your car.
Since leaving the EU, the simple act of buying a car in the UK and bringing it home to Ireland is not so easy. Importing a car from the UK requires customs procedures and potentially paying 10% duty, 23% VAT in Ireland as well as the VRT. It’s also highly likely that you will pay UK VAT of 20% in the purchase price of your car without realising. This complexity is enough to put you off. But it needn’t. The new rules for car importing to Ireland can get you a great deal from a very wide choice of cars if you know how to.
Importing a UK car to Ireland - what's changed?
Vehicles imported from the UK now need the assistance of a UK car importer to buy the car with the UK VAT saving. If the importer is experienced at VAT reclaim in the UK, they will be able to sell you the car VAT free so passing on the 20% saving.
The second fundamental change is that cars imported to Ireland must be customs cleared into the EU as they arrive in Ireland. Through our clearing agent, your customs declaration is professionally managed through the steps involved to completion.
UK to Ireland car import calculator
To get an accurate cost for buying and importing a UK car to Ireland, use our UK to Ireland Car Import Calculator.
This calculates the complete process from buying your car UK VAT free to clearing in Ireland. Just answer three simple questions to get a full breakdown of your costs (excluding VRT).
Our calculator will price your car without the UK VAT and includes the following:
Transport and shipping costs,
Insurance,
MHH service fees,
10% import duty (where applicable)
23% VAT
Clearing agent fees in Ireland.
This calculator excludes VRT as there are several excellent VRT calculators available (see below).
VRT Calculators
Use this VRT calculator for a free estimate
OR
Use this paid VRT calculator for better accuracy.
Avoid paying VAT twice on your car import.
If you buy a UK car which is not VAT qualifying you will have inadvertently paid the 20% UK VAT in your purchase price. Vehicles which have been privately owned in the UK become ‘non-VAT qualifying’. This means the cars automatically incur 20% in their purchase price and this cannot be reversed. If you buy a VAT qualifying vehicle this means it has been owned by a business or leasing company (never privately owned). This vehicle is eligible to have the 20% UK VAT reclaimed when you export it to Ireland provided the seller is willing to sell the car VAT free. Buying these vehicles net of UK VAT means you only need to pay for the VAT in Ireland.
Buying VAT qualifying new or used cars isn’t easy.
Unfortunately, VAT qualifying cars in the UK are thin on the ground. They are in demand because they offer such a saving to buyers overseas. But if you have tried to buy a car new VAT free from a UK dealer, you most likely will have been refused. This is because almost all UK dealers are not interested in completing the administration required to reclaim the VAT from HMRC. They’re not set up to do VAT reclaim and don’t want the hassle. So what can you do?
New second-hand motor vehicle payment scheme for UK car exports to Ireland.
Since the 1st May 2023, it is now possible for all vehicles supplied from the UK mainland to be exported into Ireland without UK VAT. The second-hand motor vehicle payment scheme allows Irish residents to buy cars from the UK without paying the UK VAT and the Irish VAT. The UK VAT is not payable if they are imported in the right way which means that all cars can have the VAT reclaimed on import to Ireland if they follow the correct import process.
Although it’s a rather complicated process, dealers are now able to move vehicles from the UK mainland, even if they are not VAT qualified, and reclaim one sixth of the price from HMRC as the vehicles are moved across the water. This is the equivalent of the UK VAT component of the purchase price. This means that if the vehicle is sold to you privately or to your business with a VAT number in Ireland, you will not have to pay the 20% UK VAT in your purchase price. The only VAT you will pay is the 23% VAT in Ireland.
When UK car imports to Ireland require 10% import duty.
Since Brexit, 10% import duty has become payable on some UK car imports. This duty is the first tax to be applied. 23% VAT is then calculated on the car price plus the 10% import duty. So effectively you don’t just pay 10%. You pay 10% plus the 23% of 10%. The VRT is then applied as the final tax.
UK preferential origin and returning goods relief. (RGR)
When importing vehicles from the UK, you may be eligible for preferential origin or Returning Goods Relief (RGR) under certain conditions. Vehicles that are of UK origin and meet the necessary requirements for preferential origin can benefit from reduced import duties. Similarly, vehicles built in the EU that are being returned to the EU (Ireland) after being temporarily exported to the UK may qualify for RGR provided they have been out of the EU for less than three years.
To take advantage of these reliefs, it’s important to ensure that the vehicle meets all the necessary requirements. This can include providing documentation that proves the vehicle’s origin or its temporary export status. By understanding and utilizing these reliefs, you can potentially reduce the overall cost of importing your vehicle.
Rules of Preferential Origin
In order to benefit from the 10% import duty relief, through meeting the rules of preferential origin, the vehicle has to be built with less than 45% non-UK originating parts. In other words 65% or more of the car's components must be originating from the UK and you must have the supporting documentation from the manufacturer to support your exemption and this must be available for HMRC to inspect should they request to see your evidence. This is a very difficult fact to prove, unless you built the car yourself.
Examples of UK cars which do not meet RGR regulations.
When buying a car which is intended to qualify for either UK preferential origin or EU returning good relief, it’s vital to check the key documents which support the place of manufacture of your vehicle before any money changes hands. In this global economy, there are some surprising places that cars are being manufactured. For example, the BMW X Series cars; including the BMW X5, X6 and X7 are all built in the USA. The Mercedes GLE and GLS are also manufactured in the USA. All of these vehicles and any other vehicles which are built outside the EU will incur the 10% import duty into Ireland regardless of age.
UK car import pricing to Ireland: worked examples.
The example below shows the range of pricing you might pay for a car with a price of £40,000 in the UK. The three rows show the duty cleared price (inc Irish VAT) depending on the exemptions the car has qualified for. The first example shares the import price with both UK VAT, VAT in Ireland and the 10% import duty being payable. But the same priced car, can be imported for £13.7K less under the right conditions.
So whilst importing a UK car to Ireland has become more complicated, with some professional help, you can source a very wide pool of cars in the UK for a very competitive price. If you are happy to forego the UK dealer experience or want a car with higher specification, then buying directly from the UK via a professional importer like MHH International will be of great benefit. We’ll help you buy the car you want and help you sidestep the unnecessary VAT and duties import your car import. Car importing made simple! Get in touch and we’ll be delighted to help you import your UK car today.
Registration and Licensing
Once your vehicle has been imported into Ireland, the next step is to register and license it. This process begins with registering the vehicle with the National Car Testing Service (NCTS) and obtaining an Irish registration number. This registration number must be displayed on the vehicle at all times.
In addition to registration, you will need to obtain a vehicle registration certificate. This certificate serves as proof that your vehicle is legally registered in Ireland. Finally, you must pay motor tax and obtain a motor tax disc, which must be displayed on your vehicle. By completing these steps, you ensure that your vehicle is fully compliant with Irish regulations and ready for the road.
Insurance and Testing
After importing your vehicle, it’s essential to secure the necessary car insurance. This insurance must meet Irish requirements to ensure that you are legally covered while driving. Additionally, your vehicle must undergo testing by the National Car Testing Service (NCTS) to ensure it meets the necessary safety and environmental standards.
Once your vehicle passes the test, you will receive a National Car Test (NCT) certificate. This certificate is a crucial document that confirms your vehicle’s compliance with Irish regulations. By obtaining the right insurance and ensuring your vehicle passes the NCT, you can drive with confidence knowing that your vehicle is safe and legal on Irish roads.
