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”.