How to calculate VAT on a UK import?
If I am buying a new car in the UK and I have to pay Irish VAT, what figure do I use to calculate the VAT? Is it the UK price inclusive or exclusive of VAT converted to Euro?
M CassidyJan 2020 Filed under: importing
Expert answer
Hi Maura,
God knows, the VRT and VAT system is byzantine at the best of times, but according to the Revenue handbook, the VAT charged on an imported vehicle is based on the price paid, converted into Euro. According to the handbook, under the heading ‘Purchase of new vehicles (New Means of Transport) by a private individual from a person in another country’ it says: "The VRT is calculated on the Open Market Selling Price (OMSP) of a vehicle, rather than the actual purchase price. The value for calculating VAT is the price charged for the vehicle, converted to Euro where necessary."
Neil Briscoe - Complete Car Advisor@neilmbriscoe