Dáil Éireann Debate, Thursday - 22 February 2024
115. Deputy Noel Grealish asked the Minister for Finance the exact procedure for a person wishing to import a car from Australia; the costs associated with importing a car; and if he will make a statement on the matter. [8568/24]
View answerI am advised that when a car is imported from outside the EU e.g. Australia, then Customs formalities must be completed and depending on the circumstances Customs Duty, VAT and VRT may be payable.
All goods being imported from Australia, including cars, require a Customs import declaration. This is usually completed by a Customs agent on behalf of the importer. However, an individual can complete the declaration themselves using the declaration portal in Revenue’s Automated Import System (AIS). Details of how to do this are available in the following manual on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/customs/import-export-policy/import-of-motor-vehicles-from-the-UK.pdf
If importing a new car into Ireland, the following information must be submitted with the import declaration:
• A valid Certificate of Conformity (CoC) that confirms EU type approval or
• An Individual Approval or Small Series Approval Certificate issued by the National Standards Authority of Ireland (NSAI).
The import duty is calculated on the value of the car (for a new car this is per the invoice from the supplier) plus freight plus insurance. The rate of duty due depends on the car´s origin. There is no trade agreement between the EU and Australia and thus the third country rate of Customs duty for standard cars is 10%. The value of the goods for VAT purposes is their value for Customs purposes increased by the amount of any duty payable and any other transport, handling or insurance costs between entry into the EU and delivery to their final destination.
Example of the calculation of Customs Duty and Import VAT payable on a car imported from Australia to Ireland, where no reliefs apply
Purchase price of car €32,000 (after conversion from Australian Dollars)
Transport and Insurance costs €500
Customs value of car €32,500
Customs duty @ 10% €3,250
Overall value subject to VAT €35,750
VAT @ 23% €8,223
Customs duty and VAT payable on import is therefore €3,250 and €8,223 respectively.
All cars imported into Ireland must be registered within 30 days of their date of entry and VRT is payable. When presenting such a car for registration at the NCTS centre, a check is carried out to verify that a Customs declaration in respect of the car has been completed. The Vehicle Identification Number (VIN) must be included on the Customs declaration so that this check can be made. The following must also be provided:
• The foreign registration document.
• The reference number of the Customs declaration (the MRN).
• Any other supporting documentation including confirmation of the CO2 and NOx emissions.
There is a VRT calculator available on the Revenue website to assist with estimating the amount of VRT payable. The VRT amount due is only calculated when a car is presented for registration. The VRT rate is calculated based on the Open Market Selling Price (OMSP and for cars the rates vary according to the emissions level of the car.
Revenue further advises that there are two potential reliefs from import charges, which may be available depending on the circumstances of the importation. Transfer of Residence (TOR) relief may be applicable if the car is moving to Ireland as a result of somebody transferring their residence from Australia to Ireland. Anybody transferring their residence should include their car on their TOR declaration form (C&E 1076), which covers the importation of personal items and household goods from outside the EU. If the person qualifies for TOR relief, no Customs Duty, VAT on import or VRT are payable on the car.
To qualify for TOR relief from Customs Duty and VAT, you must have lived outside the EU continuously for a period of at least 12 months or have proof that you intended to do so. The car in question must have been in the possession or used by the person for at least 6 months and must be imported into Ireland up to 6 months prior to or 12 months after their date of return to live in Ireland. If the person sells, lends out, hires or disposes of the car within 12 months then the relief no longer applies, and the import charges must be paid.
Further details of the relief from VRT are available on the Revenue website at the following link: www.revenue.ie/en/vrt/reliefs-and-exemptions/transfer-of-residence.aspx
Returned Goods Relief (RGR) provides relief from Customs Duty for cars which have been exported from the EU to a third country and re-imported into the EU, provided all the conditions for RGR are met. For example, where a car was manufactured in the EU, shipped to Australia and then exported from Australia to Ireland, it might be eligible for RGR if the conditions below are met. In very specific circumstances, relief from VAT on import may also apply where the car is re-imported into the EU by the same person that originally exported the car from the EU. The conditions for RGR are:
• The car must have been originally exported from the EU
• Must not have been altered and
• Must be re-imported within three years of export from the EU.
RGR does not apply to VRT.
Any further queries can be emailed to Revenue’s Import Policy Unit at importpolicy@revenue.ie.
