How much is VAT on a new car in the USA?

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Brian68GT

New Member

Jan 12, 2004

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Dublin, Ireland.

Mar 29, 2004

#1

• Mar 29, 2004

• #1

I ask this question as i am looking into importing the 2005 Mustang into Ireland. If i buy it brand new in the states i dont pay US VAT, but i have to pay 21% VAT in ireland, plus 30% VRT. But if i buy it second hand in the states i dont have to pay the Irish VAT, just 30% VRT on the secondhand value.

So new i pay $8000 VRT, $5000 VAT plus the new price ex-vat

or

Second hand i pay approx $7500-8000 VRT plus the total second hand price.

I know second hand ones will be thin on the ground for a while but they will eventually turn up.

So the question is, how much is US VAT?

Thanks

Brian

 

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6T6coupe

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Jul 15, 2000

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Mar 29, 2004

#2

• Mar 29, 2004

• #2

There is no Value Added Tax in the USA. Each state and locality determines a Sales and Use tax which ranges from 0% to as much as 10% on purchases. However, items sold outside the jurisdiction of the taxing authority usually have no such taxes imposed. For example, in my business I do not collect state and local sales taxes on items sold outside the state or outside the USA.

If you were to purchase the car in the US, it is likely you would not have to pay any US taxes.

Is it difficult to get a new American car registered in the UK and Ireland?

 

351CJ

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Dec 11, 2002

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Mar 29, 2004

#3

• Mar 29, 2004

• #3

6T6coupe said:

If you were to purchase the car in the US, it is likely you would not have to pay any US taxes.

Click to expand...

I most states if you don't register the car you don't pay any sales tax. So 6T6coupe is correct you would not pay any sales tax on it.

 

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Brian68GT

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Jan 12, 2004

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Dublin, Ireland.

Mar 29, 2004

#4

• Mar 29, 2004

• #4

I understand that there is no sales tax on cars purchased for export, i suppose what i was trying to setablish is does the suggested retail price od $24000 include VAT? If it does, what is the rate? But based on what your telling me i would imagine the $24000 excludes tax.

With regards to registering in the UK i know nothing about it but importing into Ireland means some paperwork, but it can be done, with a large wallet.

If i buy the new mustang for $24000, vat and vrt will bring it up to roughly $37000. Whereas if i were to buy a second hand one for $24000 i would only pay the VRT, which is still 30%.

 

351CJ

New Member

Dec 11, 2002

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Mar 29, 2004

#5

• Mar 29, 2004

• #5

Brian68GT said:

i suppose what i was trying to setablish is does the suggested retail price od $24000 include VAT? If it does, what is the rate? But based on what your telling me i would imagine the $24000 excludes tax.

Click to expand...

As 6T6GT said there is no VAT in the US. I know that this may sound strange for someone from Europe but belive me (& 6T6GT) there is no such thing as a VAT in the US.

From time to time some of our polititions have proposed a VAT, but discussions about a VAT have never gone anywhere. The mentality in the US has always been to use the tax codes to encourage consumption and not savings. This is what keeps our economy going.

 

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AF_Z06

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Mar 28, 2004

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Enid, Oklahoma

Mar 29, 2004

#6

• Mar 29, 2004

• #6

TAXES

 

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GaPonyFarm

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Jan 2, 2004

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Columbus, GA

Apr 1, 2004

#7

• Apr 1, 2004

• #7

Brian68GT... wouldn't you actually want to purchase a canadian model for the metric speedometer? Your question might be better asked to a canadian owner.

Just a thought...