How Much Customs Duty And VAT Apply When Importing A Car To Ireland?

Importing a car into Ireland often sounds straightforward at first. You find a vehicle abroad, agree a price, arrange transport, and expect to collect it once it lands. Then reality kicks in. Customs duty, VAT, paperwork, timelines, inspections, and registration all appear at once. For many people, the biggest surprise is how quickly the extra costs add up.

The question almost everyone asks is simple.

How much customs duty and VAT will I need to pay?

The answer depends on where the car is coming from, how it was manufactured, how much you paid, and whether it qualifies for any reliefs. But once you understand how Irish customs calculate these charges, the process becomes much clearer and far less intimidating.

Let us walk through it properly.

When Customs Charges Apply

Customs duty and import VAT only apply when a vehicle is brought into Ireland from outside the European Union. Cars arriving from another EU country do not attract customs duty, although VAT rules may still apply in certain situations.

Things change when the vehicle comes from the United Kingdom, Japan, the United States, or any other non EU country. Since Brexit, cars entering Ireland from the UK are treated the same way as vehicles arriving from Japan or elsewhere outside the EU.

That means a full customs declaration is required, and both customs duty and VAT are normally payable.

All of this is overseen by Revenue Commissioners, who assess the value of the vehicle and calculate what must be paid before it can be released.

How Customs Duty Is Calculated

For most imported cars, customs duty is charged at ten percent.

That ten percent is not based solely on the price you paid for the vehicle. Revenue calculate duty using what is known as the landed value. This includes the purchase price of the car, the cost of shipping or transport to Ireland, and any insurance paid during transit.

These figures are added together to form the customs value.

For example, if you purchase a car for twelve thousand euro and transport costs one thousand euro, Revenue treat the value as thirteen thousand euro. Customs duty is then calculated at ten percent of that amount.

In this case, customs duty would be one thousand three hundred euro.

This must be paid before the car can move forward in the clearance process.

How Import VAT Works

VAT is calculated after customs duty has been applied. This catches many people off guard because VAT is charged on the total amount, not just on the purchase price.

Import VAT is charged at twenty three percent in Ireland.

The VAT calculation includes the car value, the shipping cost, and the customs duty combined.

Using the same example, the vehicle plus shipping totals thirteen thousand euro. Customs duty adds one thousand three hundred euro, bringing the taxable amount to fourteen thousand three hundred euro. VAT at twenty three percent is then applied to that figure.

This results in VAT of just over three thousand euro.

At this point, before registration or VRT, the total customs related charges already exceed four thousand five hundred euro.

That is why it is so important to understand these calculations before committing to a purchase abroad.

Cars That Qualify For Zero Customs Duty

Not every imported vehicle automatically attracts ten percent duty.

Some cars brought in from the UK may qualify for zero customs duty under the EU UK trade agreement. However, this only applies if the vehicle meets strict rules of origin requirements.

In simple terms, the car must have been manufactured in the UK or meet specific production criteria. A vehicle that was merely registered in Britain does not qualify.

Many cars imported from the UK were originally built in Japan or elsewhere. These do not meet the origin rules and still attract the full ten percent duty.

Proof of origin is required, and Revenue will not accept assumptions. If documentation is missing or unclear, duty will be charged.

Even when a car qualifies for zero duty, VAT still applies.

Importing Cars From Japan

Japanese imports remain popular in Ireland, especially for performance models and hybrids. Vehicles arriving from Japan do not qualify for any duty exemptions, so ten percent customs duty applies in full, followed by twenty three percent VAT.

Japanese cars usually arrive by container or roll on roll off shipping. This adds port handling charges and release fees to the overall cost. These are separate from customs duty and VAT but still form part of the total amount payable before collection.

Electric Vehicles And Customs Charges

Electric vehicles do not receive automatic customs exemptions.

If an electric car is imported from outside the EU, customs duty and VAT apply in exactly the same way as petrol or diesel vehicles, unless it qualifies under origin rules.

While electric cars may benefit from reduced VRT once registered in Ireland, customs duty and VAT still apply at import stage.

Bringing Your Own Car Back To Ireland

People returning to Ireland after living abroad may qualify for Transfer of Residence relief. This can remove customs duty and VAT, provided certain conditions are met.

Typically, you must have owned and used the vehicle abroad for at least six months and show proof of residence outside Ireland. Documentation such as utility bills, proof of address, insurance records, and ownership papers are required.

Without proper evidence, Revenue will treat the car as a standard import and apply full charges.

Vehicle Registration Tax Comes After Customs

Once customs duty and VAT are paid, the next step is Vehicle Registration Tax.

VRT is calculated separately and is based on the vehicle’s Open Market Selling Price in Ireland, its CO2 emissions, and its category. This is handled through the NCTS and must be completed before the car can receive Irish plates.

Even if customs clearance is complete, the vehicle cannot be legally driven until VRT is paid and registration is finalised.

Extra Costs Many People Forget

Customs duty and VAT are not the only expenses involved.

There are usually professional clearance fees, port handling charges, possible storage fees if clearance is delayed, and shipping line release costs. These are commercial charges rather than taxes, but they still affect your final budget.

Delays caused by missing paperwork or incorrect declarations often lead to storage charges, which can climb quickly.

Why Paperwork Matters So Much

Revenue require accurate documentation before releasing any vehicle.

This normally includes proof of purchase, invoices, transport documents, vehicle identification details, export certificates, and origin evidence where applicable.

If values appear unrealistic or descriptions are unclear, Revenue may request additional proof or reassess the declared value. This slows the process and can increase the amount payable.

Common Mistakes That Increase Costs

First time importers often underestimate the landed value by forgetting shipping costs. Others assume that UK registration means UK origin. Some delay clearance until the vehicle has already arrived. Others submit incomplete paperwork.

Each of these mistakes can lead to delays, inspections, reassessments, and extra charges.

Can You Handle It Yourself?

Technically yes. Individuals are allowed to submit their own customs declarations.

In practice, this involves commodity codes, valuation rules, origin compliance, Revenue systems, and precise VAT calculations. For most people, especially those importing their first vehicle, using a customs agent avoids costly errors and saves time.

Final Thoughts

So how much customs duty and VAT apply when importing a car to Ireland?

In most cases, customs duty is ten percent and VAT is twenty three percent, both calculated on the landed value of the vehicle. Some UK manufactured cars qualify for zero duty, but VAT still applies. Japanese imports pay both. Electric vehicles follow the same rules. Personal imports may qualify for relief if strict conditions are met.

The most important thing to remember is this.

Always calculate the full cost before buying.

A car that looks affordable abroad can become far more expensive once duty, VAT, shipping, and VRT are added.

With proper planning, accurate documents, and a clear understanding of the process, importing a car into Ireland can still make financial sense. But going in blind almost always leads to surprises, and rarely good ones.