Can you explain what 'VAT' qualifying means on importing a car from the UK?

I am considering buying a car in the UK. Can you clarify what 'VAT qualifying' means? Does this mean that I can get the UK VAT back but I have to pay Irish VAT and VRT? I realise VAT is payable on cars less than six months old.

William Neale (Dublin)

Jun 2011 Filed under: importing

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Expert answer

Hi William,

Assuming we're talking about new cars or those that are less than six months old (and have less than 6,000km on the clock):

VAT qualifying cars are those that the UK vendor may sell on without charging for VAT to the following:

• a customer in a country outside the EU
• someone who isn't registered for VAT who will take a new car to another EU country
• a VAT-registered business in the EU

In your case, yes, you'd still have to pay Irish VAT and VRT.

Some light official reading for you around this subject that may explain more:

Revenue.ie: New vehicles purchased by a private individual from a VAT-registered person, including a motor dealer, in another country

HM Revenue & Customs: Sending your motor vehicle to another EU country from the UK

HM Revenue & Customs: Motor dealers and VAT: selling new or used vehicles and extras

Hope that answers your question

Shane O' Donoghue - Complete Car Adviser
@Shane_O_D