A motor dealership can sell used Irish vehicles, import stock, act as an intermediary, sell new vehicles or combine sales with servicing. The stock route changes VAT, VRT, consumer, premises, finance and working-capital exposure.
An Irish LTD can buy and sell vehicles, employ staff, contract with lenders and apply for Revenue authorisation where relevant. The Certificate of Incorporation is only the beginning. Before purchasing stock, the company needs a lawful premises strategy and a tax model for each vehicle source.
- Legal entity
- Irish LTD common
- VAT
- Dealer analysis
- Unregistered stock
- Authorisation
- Formation
- From EUR240
Define the vehicle stock route
List whether stock comes from Irish private sellers, Irish VAT-registered businesses, auctions, EU Member States, Great Britain, Northern Ireland or outside the EU. Record whether each vehicle is new or used, registered or unregistered, and purchased for resale or agency sale. These facts affect VAT, VRT, customs and documentation.
Do not quote one gross margin for every car. Include transport, history checks, inspection, preparation, tyres, warranty provision, advertising, finance cost, VRT, customs, VAT, registration, valeting and time in stock. A nominal margin can disappear after one repair or consumer remedy.
Form the dealership company and secure premises
The LTD should own or contract for stock, premises, insurance, advertising accounts and customer sales. It needs an acceptable name, Irish registered office, directors, secretary, shareholders, constitution and CRO identity details. A dealership trading name can be registered separately if different from the company.
StartCompany.ie's Basic package starts at EUR240 and includes the CRO fee and core documents for a straightforward LTD. It does not include premises, VAT, tax clearance, VRT trader authorisation, stock finance or motor-trade insurance. Those items should be budgeted before the company commits to inventory.
Understand Revenue motor-trader authorisation
Revenue says an applicant seeking authorisation to deal in, deliver, store, repair or modify unregistered vehicles must intend active trade, have suitable business premises, be VAT registered and hold a current Tax Clearance Certificate. The premises must be legally occupied and permit the business under planning law.
An authorised trader receives a Trader Account Number and can use the relevant VRT processes. Only authorised dealers may hold unregistered vehicles without registering them in their own name. Authorisation can be revoked if active trade, tax clearance or records are not maintained.
| Status | Meaning | Practical effect |
|---|---|---|
| Irish LTD | Incorporated legal entity | Can contract, own stock and employ |
| Taxable dealer | VAT-registered vehicle trader | VAT rules for dealer transactions |
| Authorised trader | Revenue VRT authorisation | May hold qualifying unregistered stock |
| Credit intermediary | Regulated finance-related role | Separate authorisation can apply |
| Repair operator | Workshop service provider | Safety, waste and consumer duties |
Build VAT, VRT and stock records vehicle by vehicle
Motor VAT can involve ordinary VAT, the second-hand margin scheme, intra-Community acquisitions and import VAT depending on the supplier, vehicle and evidence. VRT applies when a vehicle is first registered in the State, subject to the relevant rules. Obtain motor-trade tax advice before purchasing cross-border stock.
Maintain a stock book linking purchase invoice, seller identity, chassis number, mileage, tax treatment, VRT, preparation, sale invoice and payment. Revenue requires authorised traders to keep records and periodic statements, and commercial records generally need long retention. Reconcile physical vehicles to accounts frequently.
Consumer sales, warranties and vehicle descriptions
Describe mileage, history, condition, specification and known faults accurately. Consumer rights cannot be replaced by a sign saying sold as seen. Distinguish genuine business-to-business sales and trade auctions from consumer sales, and use legal advice for terms, deposits, part exchanges and distance transactions.
Inspect and prepare cars under a consistent process, retain diagnostic and road-test evidence and budget for remedies. A third-party warranty can support the customer but does not automatically remove the dealer's legal responsibility as seller.
Finance, insurance, data and cash controls
Confirm whether arranging or introducing finance requires regulatory status or an authorised relationship. Do not advertise approval guarantees. Apply anti-fraud and source-of-funds controls to high-value payments and refunds, and separate customer deposits from casual operating decisions.
Arrange road-risk, premises, stock, demonstration, employer and public liability cover matching the business. Protect driving licences, finance applications and identity documents. Limit test-drive copies and customer records to the necessary purpose and retention period.
Car dealership launch checklist
Make the tax and authorisation model operational before the first imported or unregistered car arrives. Stock errors are far more expensive than formation fees.
- Define stock source, customer and registered status.
- Model full landed cost and warranty reserve per vehicle.
- Form the LTD and secure suitable lawful premises.
- Register VAT and obtain current tax clearance.
- Apply for VRT trader authorisation where required.
- Implement stock, VAT, VRT and payment records.
- Prepare lawful sales, deposit and part-exchange terms.
- Arrange motor-trade insurance before holding or driving stock.
Keep incorporation small beside the stock budget
Form the dealership LTD from EUR240
StartCompany.ie provides an affordable legal starting point with CRO fees and core documents included. The dealership can then complete its separate premises, VAT, VRT, tax-clearance, insurance and consumer-law work.
Official sources used for this guide
- Revenue: authorisation of motor traders
- Revenue: VAT and VRT on motor-vehicle transactions
- Revenue: Vehicle Registration Tax
Rules, fees and programmes can change. Check the current official guidance and obtain advice for the company's actual circumstances before acting.