I propose to take Questions Nos. 117 to 120, inclusive, together.
I am advised by Revenue that they have had extensive engagement with businesses and trade representative bodies throughout the State over the last number of months to assist them in their preparations for Brexit.
I am further advised that, subject to documentary evidence, a car dealer who has new vehicles in stock that were imported through the UK, which were pre-registered with VRT quotations and are in the State before 29 March, will not be subject to differing rules on tariffs, VAT or VRT.
If a car dealer sells vehicles that are manufactured and invoiced from Italy but are transported to Ireland via the UK, Revenue have advised that these are EU goods which may be transported directly to Ireland via direct shipping routes or alternatively may be transported through the UK under the control of a customs procedure called the Customs Transit procedure.
EU goods moving under the Customs Transit procedure, from one Member State to another, through a third country, are treated as EU goods upon re-entry to the EU and therefore incur no additional import duties or taxes upon arrival into the State.
I am advised by Revenue that new and used vehicles and/or parts imported from the UK post-Brexit, having been manufactured in the UK, would be subject to Common Customs Tariffs (CCT) in the event of the UK leaving the EU without an agreement. A complete description of the item being imported would be required in order to give a full customs tariff classification, this is particularly important for the importation of car parts and accessories. In the case of new or used vehicles imported from a third country, customs duty is chargeable at importation in the normal way, unless the trader has been authorised by Revenue for the deferral of taxes and duties.
Full details of the customs procedures are available on Revenue’s dedicated Brexit website www.revenue.ie/brexit. If further information is required in relation to customs procedures, these can be addressed to email@example.com.
In relation to VAT, vehicles that are acquired from Italy and transited through the United Kingdom will be subject to the current VAT rules. Vehicles imported from the UK will be subject to VAT at the point of importation.
In order to alleviate the cash flow burden on Irish businesses post Brexit, I have legislated for postponed accounting for import VAT. Under this system, importers will not pay import VAT at the point of entry but will instead account for import VAT through their VAT return, so that it is reclaimed at the same time that it is declared - a straightforward simultaneous in/out accounting transaction, without the need to pay the import VAT at the point of entry to the State. Use of postponed accounting will be optional and will be available to all traders in Ireland who trade with operators in countries outside of the European Union for a time after Brexit, after which continuation of the facility will be subject to conditions, to be set by the Revenue Commissioners at a later date.