VRT in Ireland and why to import a CO2 efficient vehicle
Thanks to Barry from www.currency.ie for the following contribution - yor comments are welcomed of course !
Yours Sustainably
CO2.ie
>>> All new cars sold in will have Vehicle registration Tax (VRT) included in the price. All cars imported into are also subject to VRT which will have to be paid to the Irish Revenue Commissioners.
Although you will have to pay vehicle registration tax (VRT) on a car import, the real saving is made when importing a second hand model as you will be paying VRT on the OMSP (Open Market Selling Price) which will be greatly reduced. The OMSP is the price the vehicle is currently worth in at the time of import. The following is a guide for anyone interested in importing a car from the into . By following this guide you will make sure that:
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You get a better exchange rate on your car purchase making your car import considerably cheaper
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You make sure that you car is in good condition
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You complete all of the necessary paperwork for the tax office in time.
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You have all the information necessary to get your car on the road as soon as possible
- You minimize the VRT you pay by choosing a more CO2 efficient vehicle.
Why Import a car from the ? Cheaper
Even after VRT is paid, you will stand to save 5-25% off the price of your imported car compared to buying the equivalent model on the Irish marketplace.
Higher spec
You also tend to get a higher specification model when importing from or the .
Service histories
Service histories are usually better than those bought in
Better Condition
This is down to better roads, more motorway and a keener interest in car maintenance. The Used car market in the expect cars to be in immaculate condition with a perfect service history.
How can I make sure that the car has no problems? History
There are a number of ways you can research a cars history online to look out for:
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outstanding finance due on the car
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previous damage
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stolen vehicles
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clocked mileage
- vehicle identity
My Car check is the cheapest service for this: www.mycarcheck.com
Current condition
It is advisable to also have a vehicle inspection. It will cost a few hundred euro but will save you buying a faulty vehicle. This check may cost approximately £100 however it is well worth the investment.
How can I save money when paying for a car import?
Many people neglect the importance that commissions and exchange rates have on the cost of their car import and simply get a sterling draft from their bank branch. If you do this you are 100% guaranteed to lose a few hundred euro.
Contact Currency.ie , an Irish currency broker that specialize in this area on one of the phone numbers below and they will offer you better exchange rates and in lower transfer fees. The average saving is a few hundred euro which you will see immediately having called into your own bank and calling Currency.ie
: +353 1 635 3700
: +44 207 659 9185
www.currency.ie
How do I bring the car back?
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Get it delivered;
There are trucks travelling between the and regularly offering delivery services. - Collect it yourself;
You will need to travel to the by ferry and returning by ferry. Unless the car is near the coast, it is probably easier to book a cheap flight with a low fairs airline to the airport closest to the cars location and book the ferry home. You may also need to consider booking a nights accommodation to split the journey or if flight times don’t suit. It’s also worth asking the seller to collect you at the airport as many sellers would be more than willing to do this.
When do I pay my VRT on a car import? VRT - Vehicle Registration Tax must be paid by the end of the next day, following its arrival in .
What if the car has been modified and the specification is not on the revenues database? Your local revenue office will need to send the details of your car to Revenue in Rosslare for a ruling on the OMSP and applicable VRT for a car if there is no previous record of a car of that spec being imported. Legally you will have to declare that the engine size is bigger when you are registering/taxing it in the state.
How is VRT calculated? For cars imported or sold in before July 1 2008 VRT is calculated based on engine size:
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On cars from 0 to 1400cc, VRT is charged at 22.5% of the OMSP
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On cars between 1401cc and 1900cc, VRT is charged at 25% of the OMSP
- On cars greater than 1900cc VRT is charged at 30%.
VRT charged on commercial vehicles is just €50. *If you are importing a car from you will also have to pay VAT.
On cars imported into or sold in on or after July 1 2008 VRT will be calculated based on CO2 emissions. It will become increasingly important to take CO2 emissions into account when importing a car as it can literally make the difference between saving or losing a few thousand euro in many cases.
Click www.mtp.ie/vrt.html to select your car model to see what percentage VRT you will have to pay on a car imported on or after this date.
How do I pay the VRT? You will need to pay this in your local VRO (vehicle registration office). Click here to find your local vehicle registration office: www.revenue.ie/index.htm?/cont_main.htm
This can be done by filling out a VRT4 form which can be downloaded here: VRT4 download.
Once you bring your vehicle to the VRO the team there will inspect your vehicle to calculate the exact VRT payable.
What else will I need to provide the VRO?
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V5 form or the registered keepers form/log book. The seller (private or garage) has to provide you with this. Do not buy a car without this.
If the seller is serious about selling they can get this replaced and provide you with it pre purchase. -
Proof of identity
- A personal cheque or a bank draft for the amount of tax assessed. They will generally only accept a cheque or bank draft. The cheque should be made out to the revenue commissioners.
What do I receive once I have paid my VRT?
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A receipt for the VRT paid showing the registration number assigned to your car.
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A Form RF 100 for use when you are applying for road tax.
- Registration plates showing the assigned registration number must be displayed on your car within 3 days of the date of registration (a leaflet showing the correct legal format of the registration plates to be used is available at any VRO). You can apply for registration plates on www.reg-plates-ireland.com. There is also a number plate shop beside the VRT office in city.
If I have been living in the and am bringing a vehicle back to am I exempt from paying VRT? Yes, once you have been living in the and have bought and owned the car for at least 6 months while living in the .
I have been living in the for the past 6 months or more. Want do I need to prove that I have been living in the for at least 6 months? The vehicle registration office is very particular about making sure that you have substantial evidence to show that you have indeed been living in the and are not simply trying to trick the system in avoiding VRT. The following would be required as evidence:
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Vehicle Registration Certificate / Export Certificate
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Evidence of vehicle’s insurance cover abroad for previous 6 months
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Current Drivers Licence
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Invoice relating to the purchase of the vehicle
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Sailing ticket or other relevant document
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Evidence of the sale of property abroad
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Evidence of a property rental / tenancy agreement abroad
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Evidence of payment of taxes abroad (P45, P60, poll tax etc.)
- Evidence of day-to-day living abroad (e.g. household bills, medical records, work contracts etc.)
Out of interest how much motor tax will I pay annually on my vehicle? You pay road tax on a vehicle no matter whether you are importing a car yourself or buying it in . The amount of motor tax you pay is currently based on engine size. Again for new cars registered from 1 July 2008, motor tax charges will be determined on the basis of seven CO2 bands. Charges will range from €100 a year for the greenest cars to €2,000 for cars with the highest emissions ratings.
Cars registered before 1 January 2008 will continue to pay motor tax on the basis of engine size. New cars registered between 1 January 2008 and 30 June 2008 will have the choice weather to tax their vehicle based on engine size or CO2 emissions. You simply choose whichever is cheapest. There is a lot of confusion over this matter however this is the official word from the motor tax office as of 24th April 2008.
Old system
The following are the old tax bands that applied based on engine size: www.whatcar.ie/roadtaxcalculator.php
The following are the new tax bands that will apply after June 30th 2008 and will be based on CO2 emissions. As you can see the governments aim of reducing CO2 emissions is targeting older cars and particularly those larger more expensive cars whose CO2 emissions would tend to be higher than average
New System
Band A, which corresponds to CO2 emissions of under 120 grams per kilometre - motor tax rate of €100.
Band B, which corresponds to CO2 emissions of between 121 and 140 grams per kilometre - motor tax rate of €150.
Band C, which corresponds to CO2 emissions of between 141 and 155 grams per kilometre - motor tax rate of €290.
Band D, which corresponds to CO2 emissions of between 156 and 170 grams per kilometre - motor tax rate of €430.
Band E, which corresponds to CO2 emissions of between 171 and 190 grams per kilometre - motor tax rate of €600.
Band F, which corresponds to CO2 emissions of between 191 and 225 grams per kilometre - motor tax rate of €1,000.
Band G, the top band - motor tax rate of €2,000, reflecting CO2 emissions of over 225 grams per kilometre.
Tags: CO2.ie, currency.ie, importing cars, Ireland, Irish Revenue Commissioners, july vrt changes, vehicle registration office, Vehicle Registration Tax, VRO, vrt
