Value Added Tax

Dáil Éireann Debate, Wednesday - 27 January 2021

Wednesday, 27 January 2021

Questions (216, 217, 233)

Colm Burke

Question:

216. Deputy Colm Burke asked the Minister for Finance if VAT of 21% and duties of 10% apply to vehicles imported from Northern Ireland; and if he will make a statement on the matter. [4121/21]

Colm Burke

Question:

217. Deputy Colm Burke asked the Minister for Finance if VAT of 21% and duties of 10% apply to vehicles imported from Northern Ireland if the dealer in Northern Ireland has bought the car from England, Scotland or Wales; and if he will make a statement on the matter. [4122/21]

Colm Burke

Question:

233. Deputy Colm Burke asked the Minister for Finance the position regarding circumstances in which cars which are imported from the UK or Northern Ireland but built within an EU country are not liable to the import tariff; and if he will make a statement on the matter. [4384/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 216, 217 and 233 together.

I am advised by Revenue that under the Protocol on Ireland and Northern Ireland, Northern Ireland will continue to apply and adhere to EU rules in relation to trade in goods with the result that there are no customs formalities, including customs declarations or payment of tariffs, on trade between Ireland and Northern Ireland. In relation to vehicles from Northern Ireland

- Vehicles registered in Northern Ireland or to a person resident in Northern Ireland before 1 January 2021 can be registered in Ireland without any checks on the customs status.

- Vehicles first registered in Northern Ireland after 1 January 2021 can be registered in Ireland without any checks on the customs status.

Vehicle Registration Tax (VRT) is payable on such vehicles upon registration in the State. Value Added Tax (VAT) is payable on new vehicles only. New vehicles as defined for VAT purposes are generally vehicles under six months old or with less than 6,000km.

Under the VAT rules currently in force in the UK, vehicles first registered in Great Britain and imported into Northern Ireland after 31 December are liable to customs duty, if applicable, and VAT at import if they are subsequently imported into the State.

The EU-UK Trade and Cooperation Agreement has eliminated tariff duties for trade between the EU and Great Britain where the relevant rules of origin are met. It is important to note that a claim for preferential tariff treatment for imports into Ireland can be made only where the goods are of UK origin. The customs tariff duty on the import of passenger cars of UK origin is 0%. The customs tariff duty on the import of passenger cars of non-UK origin is 10%. Customs tariff duty, if applicable, applies on the customs value of the vehicle. To import a car of EU origin from Great Britain into Ireland, a customs declaration must be completed. The customs value is the invoice price plus the cost of transport and insurance. In addition to any import tariff, VAT at 21% will also apply.

The routing of importations of used vehicles from Great Britain into the State through Northern Ireland to avoid EU requirements in relation to customs duty and VAT at import will not be permitted.

Question No. 218 answered with Question No. 201.

Question No. 219 answered with Question No. 181.

Question No. 220 answered with Question No. 202.