The sale and purchase of motor vehicles in Ireland is regulated under a set of rules. When opening a company in Ireland that sells motor vehicles, the owners of the company are required to complete various procedures when importing these products in the country. As a general rule, for the trading operations carried out at the level of the European Union (EU), the vehicles are sold without the value added tax, as long as the motor vehicle is considered a new product. Our team of specialists in company registration in Ireland can advise on the regulations applicable at the EU level.
New / second-hand vehicles in Ireland
Foreign businessmen can open a company in Ireland that sells new or second-hand motor vehicles. It is important to know that a motor vehicle is considered new if it meets one of the following aspects:
• the motor vehicle was not registered for more than 6 months;
• the motor vehicle has a mileage below 6,000 km.
If one of these aspects are not met, the company may sell the vehicle as a second-hand product.
Documents involved in a motor vehicle transaction in Ireland
The sellers are legally required to provide a set of documents to the clients who are purchasing motor vehicles in Ireland. Our Irish company formation agents present below the documents which have to be provided by any seller in Ireland:
• the sale contract;
• the invoice;
• the vehicle registration certificate;
• the European Certificate of Conformity (COC).
Tax requirements for motor vehicles in Ireland
Companies in Ireland involved in the motor vehicle industry should know that such items are liable to the standard value added tax (VAT) rate. Once the vehicle is registered in Ireland, it will also be liable to the Vehicle Registration Tax (VRT), which can vary depending on the characteristics of the vehicle.
Once the vehicle is sold, the motor dealer is required to collect the VRT from the customer and register the product in the customer’s name, by using the Revenue’s Online System.
A company can be set up as a motor dealer, which may also sell on the local market unregistered or vehicles registered in foreign countries. If so, the company is required to obtain an authorization from the Irish Revenue. If the authorization is approved, the institution will issue a Trader Account Number and our team of consultants in company formation in Ireland can provide further information on this matter.
Businessmen may need to complete others types of procedures, depending on their specific business operations. For more details, please contact our team of Irish company formation specialists for tailored assistance.