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VAT or VRT on N1 to M1 conversion?

I want to purchase a commercial SUV, but I will have to convert the vehicle from an N1 to an M1 category as it will be insured and taxed privately. Am I liable for any VAT or VRT?

Filed under commercial vehicle - Asked by Paul Devine (Maynooth) - Tue, 07 Jan 2020 13:52

Neil Briscoe Answered by: Neil Briscoe - Complete Car Advisor - @neilmbriscoe


Hi Paul,

No. If you purchase it as a commercial vehicle, then you will pay the commercial vehicle VRT rate of 13.3 per cent, whether or not you then go on to convert it. There should be no VAT implication either, as you’ll pay the normal VAT rate at the time of purchase. According to Revenue, if you’re converting to M1 status, you only need to make them aware of it if you’re adding seats to the vehicle, but as with all VAT matters, check with your accountant before leaping. 

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