A no-deal Brexit would have serious impact on the economics of importing a car from the UK into Ireland, according to the Chairman of The Revenue Commissioners, Niall Cody.
Cody was speaking before the Oireachtas Finance Committee on Thursday, January 24 and said that if the UK leaves the EU, those who buy cars in Britain will be liable for VRT and VAT as normal.
He added that they will also be liable for a customs tariff which, in the event of a hard Brexit will be 10 per cent on petrol cars and 20 per cent on diesel cars.
Cody also added that if the UK leaves the EU with no-deal, VAT at the point of entry will more than double.
Niall Cody stated: “In the event of the UK leaving the EU, they will be liable for VRT, VAT and a customs tariff where tariffs apply and in the event of a no-deal a customs tariff of approximately 20 per cent on a diesel car and 10 per cent on a petrol car would apply.
“It will significantly impact and change the economics of bringing in a car but unlike other goods, the process of registration gives us a point from which we can apply taxation. Then there are special rules if it is temporary importation or if the owner is moving residence there are some reliefs.”