VAT Brexit warning from NI retailers

  04 January 2021

Retailers in Northern Ireland are warning car buyers face price rises due to post-Brexit changes to VAT and customs red tape on movements between England and Northern Ireland.

The biggest hurdle is Northern Ireland leaving the UK’s margin scheme on second-hand goods, which allows VAT to be paid on the profit made, rather than the full sale price. UK suppliers may also be deterred by the extra paperwork involved.

County Down’s Ciaran Russell usually spends £1m a month on vehicles from England to sell in Northern Ireland. “It is total discrimination. We are not on a level playing field with Great Britain. If we can’t get cars, or there is 20% VAT, then that’s it – we’re finished.”

The Northern Ireland Protocol stats that both sides are aware of the problem and Westminster is “continuing to explore options for addressing the impacts”.

imageTags: Brexit, VAT

Start your free 14 day trial

Get free access to our Bulletin, Agenda & Profit for 14 days.

After 14 days we will auto bill your credit or debit card unless the order is cancelled.

    As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:

    • Get informed and boost your business potential
    • More than 1,200 fellow executives have joined us
      since launch
    • Independent, carefully crafted, unique content relevant to you and your business
    • Develop a greater awareness of market trends and opportunities
    • Access to a wide range of materials whenever, wherever and however you want it
    • Significant discounts on ARN events, reports and
      other publications