Written answers

Tuesday, 6 November 2012

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance if VAT is payable on a used vehicle imported from the UK, noting that VAT had previously been paid in UK when purchased; and if he will make a statement on the matter. [48336/12]

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance if VAT is payable on a used vehicle imported from an EU member state, noting that VAT had previously been paid in the country of origin; and if he will make a statement on the matter. [48337/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 244 and 245 together.

I am advised by the Revenue Commissioners that the VAT treatment of motor vehicles is subject to European VAT law with which Irish VAT law must comply. Under EU law, the circumstances in which a particular supply is made will determine the VAT treatment to be applied to it.

The terms, 'used vehicle' or 'second-hand vehicle', apply generally to pre-owned vehicles, provided they are over 6 months old and have travelled over 6,000 km before they are supplied in the State. A motor vehicle which does not meet both of these conditions is regarded as a 'new means of transport', a specific concept in European VAT law.

There is no liability to VAT in Ireland where a private individual purchases a second-hand vehicle, as defined, from a motor dealer or a private individual in another Member State.

New means of transport, including those vehicles deemed second-hand but not qualifying under the definition above, are subject to Irish VAT at the standard rate, currently 23%. A person who purchases such a vehicle may, in certain circumstances, be able to claim a refund of the VAT paid in the Member State in which the vehicle was first supplied.

Detailed information including the rules relating to VAT on the supply of motor vehicles in Ireland is contained on the Revenue website at .

Comments

No comments

Log in or join to post a public comment.