What does an Irish dealer pay to import a used car from the UK?
A used car bought in Great Britain is an import from outside the EU. Before it can be registered, the dealer files a customs declaration, pays customs duty if it applies and VAT at import, then registers the car at an NCTS centre within 30 days of arrival and pays VRT. Duty is 0% only for cars made in the UK with proof of UK origin; a UK registration is not that proof. When the car is sold, VAT is charged at 23% on the full selling price, excluding VRT, not under the margin scheme. A car bought in Northern Ireland that was legally imported into NI comes in without customs duty or import VAT.
The order of steps for a car from Great Britain
- Customs declaration in Ireland. It carries the car's VIN and gives you a Master Reference Number (MRN). Revenue will not register a car without it.
- Customs duty, if it applies (see the next section).
- VAT at import, charged on the customs value of the car. VAT paid in Great Britain makes no difference to it. A VAT-registered dealer can use postponed accounting, declaring the import VAT and deducting it on the same return.
- Registration at an NCTS centre within 30 days of the car arriving in the State, with the UK V5C, a copy of the customs declaration showing the MRN, and any other supporting documents. A car not registered within 30 days can be seized.
- VRT, paid at registration.
Customs duty: it depends where the car was made
The EU–UK Trade and Cooperation Agreement allows a 0% rate only for goods of UK origin. For a car, that means it was manufactured in the UK and meets the origin rules. The claim is made on the customs declaration with a statement on origin or the importer's knowledge, and it can be checked. Revenue points out that a UK registration is not proof of UK origin: origin is set by where the car was built and the materials used, and is generally certified by the manufacturer.
A car made in the EU or elsewhere that was sold in the UK does not qualify for the 0% rate, even if it was first registered there. It pays the standard EU duty on passenger cars, and import VAT is then charged on a value that includes that duty.
There is one more relief. Returned goods relief can remove duty on a car that was exported from the EU and comes back unaltered within three years. The conditions are strict and are checked at import.
How VRT is worked out
VRT is not based on what you paid. Revenue charges a percentage of the Open Market Selling Price (OMSP), the price the car would sell for in Ireland including all taxes, with the percentage set by the car's CO2 emissions. A separate NOx charge is added per mg/km of nitrogen oxide emissions. Older cars tested under NEDC have their CO2 figure converted to a WLTP equivalent first.
Have the NOx figure ready. It is on the certificate of conformity and sometimes on the foreign registration certificate. Without satisfactory evidence Revenue applies a default NOx charge, which for a diesel is several thousand euro on its own.
Before you buy, put the car into Revenue's VRT calculator. The VRT, the duty and the import VAT together decide whether a GB car makes sense at its price.
Selling the car: no margin scheme
Revenue's guidance on importing vehicles from GB and Northern Ireland says that when the dealer sells the car, VAT is charged at 23% on the full value of the sale, excluding VRT. The margin scheme does not apply to a car bought in Great Britain, including one that came in through Northern Ireland.
Price it with that in mind. On a margin scheme car the VAT comes out of the margin only; on a GB import it comes out of the whole selling price, with the import VAT you deducted as the offset.
Cars bought in Northern Ireland
Northern Ireland follows EU rules for goods. A used car bought there can be imported without customs duty or import VAT if it was legally imported into Northern Ireland. Revenue asks for proof: the NI import declaration, or failing that other evidence such as the original V5C from the last keeper showing an NI address, the NI service history and the NI MOT history. VRT still applies when you register it.
A car first registered in Great Britain and moved to Northern Ireland without the customs formalities being done there is treated like a GB import: duty and import VAT can arise. Check the paperwork before you pay for the car, not after.
Keeping it straight in 10X Dealership
In 10X Dealership the purchase is recorded on the car with its costs, so duty, VRT and transport sit against that vehicle and show up in its profit. A car recorded as bought outside the EU cannot be put on the margin scheme at invoice, and profit is shown after the VAT that will actually be due.
This guide covers the general rules for VAT-registered dealers in Ireland and is not advice on a specific import. Customs rates, VRT bands and the NOx charge change over time, so confirm the figures on revenue.ie or with your customs agent before buying.
Related questions
Is there customs duty on a used car from the UK?
Only if it is not of UK origin, unless a relief applies. A car made in the UK with proof of origin can come in at 0%. A car made in the EU or elsewhere that was sold in the UK pays the standard EU duty on cars.
How long do I have to register an imported car?
Revenue says a vehicle must be registered within 30 days of arriving in the State, at an NCTS centre, with the V5C and the customs declaration including the MRN. An unregistered car can be seized after that.
Can I sell a car bought in Great Britain under the margin scheme?
No. When you sell it, VAT is charged at 23% on the full selling price, excluding VRT. The margin scheme only covers cars bought in the EU from sellers who could not charge VAT.
Is a car from Northern Ireland treated the same way?
No. A used car legally imported into Northern Ireland can come into the State without customs duty or import VAT, with proof such as the NI import declaration. VRT still applies.
