Can an NI car dealer claim back VAT?

In the scenario of a private individual importing a car from an NI dealer that has not previously been used in NI, is it correct that if the car has been imported to NI in accordance with the Windsor Framework that no ROI customs or VAT applies?

If so, what requirements does the NI dealer need to meet in order to import the car to NI in accordance with the Windsor Framework? E.g. does the NI dealer have to pay UK customs and VAT? If so, would that UK VAT be re-claimed by the NI dealer upon selling to me (for export to ROI)?

Thanks!

David O'Loughlin (GREYSTONES)

Sep 2024 Filed under: importing

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Expert answer

Hi David,

Yes, our understanding mirrors yours - if the car is imported into NI by a dealer in accordance with the Windsor Framework and you buy it and import it South then no customs duty or VAT will be payable by you to Revenue in Ireland. Note that Revenue will look for proof of an import declaration lodged in NI by the dealer.

And yes, the NI dealer would have to pay VAT to make that happen, but they can claim that back.

Shane O' Donoghue - Complete Car Advisor
@Shane_O_D