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.

Complete Import Cost Breakdown (2026)

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

The "CIF" Valuation Formula

Revenue uses the CIF (Cost, Insurance, and Freight) method to determine the taxable value of an import. It is a common mistake to think duty is only paid on the car's price. If you drive the car home yourself, Revenue assigns a "notional cost" for freight based on the ferry route used.

The "Rules of Origin" — Claiming 0% Duty

Under the EU-UK Trade and Cooperation Agreement (TCA), you can bypass the 10% duty if the car is of "Preferential Origin". This means it must have been largely manufactured in the UK (for GB imports) or the EU (for EU imports sold in GB). You cannot certify origin yourself — you need a "Statement on Origin" from the seller using the specific wording required under the TCA.

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. See our full VRT CO₂ bands guide for the exact rate table.

VRT Calculation Factors

• OMSP: Revenue's assessment of the vehicle's market value in Ireland
• CO₂ Emissions: Determines the VRT percentage rate (7% to 41%)
• Age Factor: Depreciation applied based on first registration date
• NOx Levy: Additional charge for high-emission diesel vehicles

Brexit's Impact on Car Imports

EU vs UK vs ROW: Regional Comparison

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.

Returned Goods Relief

If you are re-importing a vehicle that was originally exported from the EU (e.g., a German car sold to the UK and now coming back to Ireland) within 3 years, you may claim Returned Goods Relief. This relieves you from paying Customs Duty, provided you have proof of the car's original export status.

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