Customs Duty on Car Import Ireland

Understanding Customs Duty on Car Imports

Customs duty is a tax imposed on goods imported from outside the European Union. Since Brexit, vehicles imported from Great Britain are now subject to customs duty, fundamentally changing the cost structure for car imports to Ireland.

The duty is calculated as a percentage of the vehicle's customs value, which includes the purchase price, shipping costs, and insurance. Understanding this base calculation is crucial for budgeting your import costs accurately.

When Does Customs Duty Apply?

Post-Brexit Changes

Since January 1, 2021, vehicles imported from Great Britain (England, Scotland, Wales) are treated as non-EU imports and are generally subject to customs duty. However, there are several important exceptions:

• Northern Ireland vehicles: Under the Windsor Framework, different rules may apply
• EU-origin vehicles: Cars manufactured in the EU but sold in GB may qualify for tariff-free treatment under the Trade and Cooperation Agreement (TCA)
• Transfer of Residence: Personal vehicles may be exempt under specific conditions
• Temporary imports: Short-term imports may have different treatment

EU Imports

Vehicles imported from EU member states are generally not subject to customs duty, though VAT and VRT still apply depending on whether the vehicle is classified as "new" or "used" under EU regulations.

Customs Duty Rates & Calculation

Standard Duty Rates

Calculating Customs Value

The customs value forms the basis for duty calculation and includes:

• Purchase price of the vehicle
• Shipping/transport costs to Ireland
• Insurance costs during transport
• Any applicable handling fees

VAT on Vehicle Imports

Value Added Tax (VAT) at 23% applies to most vehicle imports, but the rules differ significantly between EU and non-EU imports.

VAT on Non-EU Imports (GB)

For vehicles imported from Great Britain, import VAT is calculated on the customs value plus any customs duty paid:

VAT on EU Imports

EU imports follow different rules based on whether the vehicle is classified as "new" or "used":

• New vehicles: Less than 6 months old OR under 6,000km - Irish VAT applies
• Used vehicles: VAT typically paid in country of purchase (no Irish VAT)

Vehicle Registration Tax (VRT)

VRT is calculated separately from customs duty and VAT, based on the vehicle's Open Market Selling Price (OMSP) and CO₂ emissions. This tax applies to all vehicles being registered in Ireland, regardless of origin.

VRT Calculation Factors

• OMSP: Revenue's assessment of the vehicle's market value in Ireland
• CO₂ Emissions: Determines the VRT percentage rate (14% to 36%)
• Age Factor: Depreciation applied based on first registration date
• NOx Levy: Additional charge for high-emission diesel vehicles

Brexit's Impact on Car Imports

Brexit has fundamentally changed vehicle import costs from the UK. What was once a simple intra-EU transfer now involves customs procedures and additional costs.

Key Changes Since 2021

• Customs declarations required for all GB imports
• 10% customs duty on most passenger vehicles
• Import VAT at 23% (previously may have been exempt for used cars)
• Additional paperwork and potential delays
• Professional customs clearance often required

Electric Vehicle Relief & Incentives

While electric vehicles don't receive customs duty relief, they benefit from significant VRT reductions and other incentives.

Current EV Benefits

• VRT Relief: Up to €5,000 reduction in VRT for battery electric vehicles
• Reduced VRT Rate: Lower percentage rates for zero-emission vehicles
• No NOx Levy: Electric vehicles exempt from diesel surcharges
• Annual Motor Tax: Significantly reduced ongoing costs

Exemptions & Relief Options

Transfer of Residence Relief

If you're moving your residence to Ireland, you may qualify for relief from customs duty and import VAT under specific conditions:

• Vehicle must have been owned and used outside Ireland for at least 6 months
• Owner must be transferring normal residence to Ireland
• Vehicle for personal use only (not commercial)
• Application must be made before or within 12 months of arrival

Diplomatic & Military Relief

Certain categories of people may qualify for duty relief, including diplomatic personnel and returning military members. These require specific documentation and pre-approval.

Required Documentation

Proper documentation is crucial for smooth customs clearance and accurate duty assessment:

Essential Documents

• Purchase Invoice: Showing actual price paid and VAT status
• Proof of Payment: Bank transfer records or finance documents
• Certificate of Conformity (CoC): Proving EU type approval
• Vehicle Registration Document: Current UK V5C or equivalent
• Transport Documentation: Shipping or transport invoices
• Insurance Documentation: Transit insurance details
• Identity Documents: Passport or ID for the importer

Additional Requirements

• Customs declaration (usually handled by freight agent)
• Origin documentation (for TCA claims)
• Power of attorney (if using an agent)
• VAT registration details (for businesses)

Step-by-Step Import Process

Real World Cost Examples

Example 1: Used BMW 3 Series from UK

Example 2: Electric Tesla from Germany (EU)

Cost-Saving Tips & Strategies

Before You Buy

• Calculate total costs: Use our VRT calculator to understand full import costs before committing
• Consider EU alternatives: Similar vehicles from EU countries may be cheaper overall
• Check for Irish equivalents: Sometimes buying locally is more cost-effective
• Timing matters: Exchange rates can significantly impact costs

During Import Process

• Accurate documentation: Ensure all invoices reflect actual prices paid
• Professional help: Use experienced customs agents to avoid costly mistakes
• Transport efficiently: Consolidated shipping can reduce per-vehicle costs
• Apply for reliefs: Check eligibility for Transfer of Residence or other exemptions

Electric Vehicle Strategy

• Maximize VRT relief: Ensure you qualify for full EV incentives
• Consider timing: VRT relief schemes may change - check current rates
• Factor ongoing savings: Lower motor tax and running costs offset import costs