CompleteCar.ie logo | Car Reviews, News and Features

Quick car review finder - select below

Ask Us Anything

Please ask your question in the box below. We will answer it as soon as possible.

Please note that we may edit the text of your question and that, if you provide your name and town, these will appear with your question. No other personal or contact information will be displayed or made public.

Top Categories

What makes a vehicle a commercial?

What makes a vehicle "commercial"? Is it the type of vehicle or the individual owner's use of it? For example, if I buy a car-van simply because the large boot suits me, but the previous owner used it commercially and taxed, insured and tested it accordingly, what do I have to do to ensure it's considered a private vehicle when I buy it (taxed and insured that way, subject to NCT instead of CRW)? Is there any VAT issue with a private buyer purchasing a used commercially vehicle?

Filed under commercial vehicle - Asked by Owen Doyle (Dublin) - Mon, 15 Jun 2020 03:52


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

Answer

Hi Owen,

In terms of taxing a vehicle as a private car, there are no particular restrictions. All you have to do to tax a commercial vehicle as a private car is to let your local motor tax office know, and they’ll shift your tax to the old engine capacity system, instead of the flat-rate €333 annual commercial tax.

What makes a vehicle a ‘commercial’ is its original homologation (whether it’s classified as an N1 commercial vehicle, or an M1 passenger vehicle), but it’s entirely legitimate to tax an N1 commercial as a private car. However, even if you do so, it will still need to be tested, annually, under the Light Commercial Vehicle test, not the passenger car NCT. There’s no VAT issue in that you’ll pay the normal VAT rate when buying a commercial vehicle, but you won’t be able to claim back the VAT unless you’re using the vehicle for commercial purposes.

0 responses


Already a member?

If you are already registered, you can log in to send your question. Otherwise, please complete the following. Only your name is mandatory, but if you enter your email address, you will be notified when your question has been answered by our experts.