Comparing the Cost of Importing from the UK Now vs Before Brexit

Before Brexit: an EU-to-EU move

Until the end of the transition period in December 2020, a UK-registered car was, for tax purposes, exactly like a car coming from Germany or France: no customs declaration, no import duty, no import VAT (VAT was only relevant if buying new from a dealer, in the same private-vs-dealer sense that still applies within the EU today). The cost stack was essentially: purchase price, transport, IEDMT registration tax based on CO2, ITV pre-registration inspection, and DGT fees. On a typical 20,000 EUR used family car with moderate emissions, total import friction cost, excluding IEDMT which depends on emissions, was commonly in the 600-1,000 EUR range for transport, ITV and DGT paperwork combined.

After Brexit: a genuine customs import

The same 20,000 EUR car today faces 10% customs duty (waived if UK-origin under the Trade and Cooperation Agreement rules of origin, but not waived for a German- or Japanese-built car simply sold through a UK dealer) and 21% VAT on the value plus duty. Assuming no origin exemption applies, that is 2,000 EUR duty plus 4,620 EUR VAT, a combined 6,620 EUR that simply did not exist before 2021. Add a customs agent fee (250-450 EUR) for filing the DUA that was not previously required, and RHD-to-Spanish-beam headlight conversion where relevant (300-2,500 EUR depending on the model), and the gap between 2020 and 2026 on an identical car and identical IEDMT band is commonly 7,000-9,500 EUR.

Side-by-side on a real example: 2018 Volkswagen Golf, 22,000 EUR

• Before Brexit (2020): purchase 22,000 EUR, transport 900 EUR, ITV 60 EUR, DGT and plates 130 EUR, IEDMT (4.75% band) approx. 1,045 EUR. Total friction cost above purchase price: roughly 2,135 EUR.
• After Brexit (2026), no origin exemption (German-built): purchase 22,000 EUR, 10% duty 2,200 EUR, 21% VAT on 24,200 EUR = 5,082 EUR, customs agent 350 EUR, headlight conversion 450 EUR, transport 900 EUR, ITV 60 EUR, DGT and plates 130 EUR, IEDMT approx. 1,045 EUR. Total friction cost above purchase price: roughly 10,217 EUR.
• That is an increase of approximately 8,000 EUR, or close to 37% of the car's purchase price, purely from the change in customs status, on an identical car bought for an identical price.

The one scenario where the gap mostly disappears

The transfer-of-residence exemption for genuine relocators removes duty, VAT and IEDMT entirely, which brings the cost stack back close to, sometimes even below, the pre-Brexit figure (since pre-Brexit residents still paid IEDMT, while the modern exemption waives it too). This exemption did exist in a similar form before Brexit as well, so it is not new, but it has become dramatically more valuable relatively speaking, because it now shields you from a much bigger tax exposure. This is also why the exemption's strict conditions (12 months prior UK residence, 6 months prior ownership, 60-day application window) matter far more today than they did when the downside of missing them was just paying IEDMT rather than IEDMT plus duty plus VAT.

UK-origin cars: the partial offset

The Trade and Cooperation Agreement's rules of origin mean a car substantially manufactured in the UK, such as a Nissan Qashqai from Sunderland, a Mini from Oxford, a Toyota Corolla from Burnaston or a Range Rover from Solihull, can qualify for 0% customs duty, even though 21% VAT still applies. This removes roughly a third to a half of the new post-Brexit cost burden on those specific models, but does nothing for the large share of UK-market cars that are built in Germany, Japan, Spain or elsewhere and simply sold through a UK dealer network, which is most premium German brands and a large share of the used market.

The car did not get more expensive. Crossing the border with it did.

Frequently asked questions

Is it ever cheaper to import from the UK now than before Brexit?

Only really if you qualify for the transfer-of-residence exemption, or if the specific car is UK-origin under the TCA and the model or spec you want is not available as cheaply within the EU, since VAT and headlight costs still apply.

Do sellers in the UK reduce prices to reflect the extra Spanish import cost?

Generally no; UK car prices are set by the UK domestic market, not by what it costs a Spanish buyer to import them, so the post-Brexit cost increase is not offset by cheaper UK asking prices in most cases.

Has the process also gotten slower, not just more expensive?

Yes, typically; customs clearance and the DUA filing add real time (days to a couple of weeks depending on the port and agent) that simply did not exist as a step before 2021, on top of ITV and registration timelines that are largely unchanged.