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Importing Vehicles & Equipment from the UK to Ireland Post-Brexit: A Guide for potential importers 2024
Importing Vehicles & Equipment from the UK to Ireland Post-Brexit: A Guide for potential importers
The customs importation process for importing vehicles & equipment from the UK to Ireland has undergone significant changes post-Brexit. Specialised vehicles or equipment can be quite difficult to source within the Irish market due to its relative size. We frequently receive funding requests from our customers to assist them finance business assets sourced from UK. As an asset finance broker, it’s crucial to guide our commercial customers through these new procedures and associated costs. Here’s a comprehensive overview of what our clients need to know and the benefits of using a customs broker to navigate the complicated process.
Understanding the Customs Process
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Customs Declarations:
Post-Brexit, every asset imported from the UK to Ireland requires a customs declaration. This declaration includes detailed information about the asset, its origin, and its destination. Importers must use the Automated Import System (AIS) to submit these declarations.
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EORI Number:
Customers will need an Economic Operators Registration and Identification (EORI) number to trade between the UK and Ireland. If they don’t have one already, they can apply for it through the Revenue Commissioners or use a customs broker to assist them.
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Import Duties and VAT:
Imported assets are subject to customs duties and Value Added Tax (VAT). The duty rate varies depending on the vehicle’s type and specifications. Typically, import duty for commercial vehicles can be 22%, and VAT is 23%.
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Health and Safety Standards:
Vehicles must meet specific health and safety standards before they can be registered and used in Ireland. This includes passing a roadworthiness test and may require Department of Health inspection. The Supplier may also need to provide Phytosanitary Certificate and have the asset professionally cleaned on import.
What are the Costs?
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Customs Duty:
Customs duty is calculated based on the truck’s value, including transport costs to Ireland. For instance, if a truck is valued at €50,000, and the duty rate is 22%, the customs duty will be over €12,000.
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VAT:
VAT is calculated on the truck’s value plus the customs duty. Using the previous example, if the truck’s value is €50,000 and the customs duty is €12,000, VAT would be 23% of €62,000, which amounts to €14,260.
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Vehicle Registration Tax (VRT):
In addition to customs duty and VAT, importers must pay Vehicle Registration Tax (VRT). The VRT rate for trucks is generally around €200. Category B vehicles such as jeeps with additional passenger seats can attract additional costs of 13.3% of the vehicles’ Open Market Selling Price (OMSP).
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Administration and Clearance Fees:
Importers may incur additional costs, including customs clearance fees, administration fees, and potential storage charges if the truck is held at customs for an extended period. These will vary on a case by case basis.
Steps to Import vehicles & Equipment
Appoint a Customs Agents: Readily available throughout Ireland or online.
Obtain an EORI Number: Essential for all customs activities.
Submit a Customs Declaration: Provide all necessary details about the truck.
Pay Import Duties and VAT: Based on the asset’s value and transport costs.
Ensure Compliance with Health and Safety Standards: Get the vehicle tested and approved.
Register the Vehicle: Pay the VRT and register the vehicle in Ireland.
Conclusion
Importing vehicles and equipment from the UK to Ireland post-Brexit involves navigating a complex customs process and managing various costs. As an asset finance broker, providing clear guidance and support to our customers through using a customs agents can make this process more manageable. By understanding the requirements and associated expenses, our clients can import vehicles & equipment smoothly and efficiently, ensuring compliance and minimising delays.
For further assistance or bespoke advice on financing options, feel free to contact us. We’re here to help streamline your importation and financing processes. We work with a range of customs brokers throughout Ireland to assist you with this process.
