Statistics supplied by the Society of the Irish Motor Industry (SIMI) regarding the number of new and imported cars for 2021 show an increase in the number of new car sales for 2021, but a substantial drop in the number of imported cars.
Figures show that 104,932 new cars were registered in 2021, compared to 88,325 for the same period in 2020 (+18.8%) and 117,109 in 2019 – meaning new car sales made up a lot of ground toward recovering to pre-pandemic sales levels.
Imported used cars registrations recorded a big decrease of 20.4% on 2020 levels, with 63,617 used vehicles registered compared to 79,969 for 2020. Comparative to the volume of used cars registered in 2021 versus 2019, the past year the drop is even more significant recording a 44.2% drop on 2019 registrations of 113,926 that year.
The reason for a drop in used car imports from the UK is thought to be due to changes brought about by Brexit, namely the application of VAT at 23% on the import of used vehicles along with VRT, NOX tax and customs duty.
The Revenue has published an updated online guide on vehicle importing procedure, Revenue eBrief No. 022/22.
For farmers looking to import jeeps and crew cabs, the same rules apply vis and vis VAT, customs and VRT; however, the added complexity is that many such vehicles imported from Northern Ireland will be liable to VAT as prior owners are more likely to have been VAT registered in that jurisdiction.
It’s advised that new owners know the exact status of a vehicle, so that import costs can be accurately factored in.
LSL News.