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Can a farmer use the herd no. for CV tax?

Can a farmer still use their herd number instead of a VAT no. to avail of commercial vehicle tax rate on a 4x4 like a Toyota Land Cruiser or Hilux etc? This was the case in the past but has this changed?

Fintan Cassidy (Blessington)

Jul 2020 Filed under: taxation


Expert answer

Hi Fintan,

In theory, a herd number might be sufficient, but basically it’s down to the local motor tax office with which you’re dealing. Basically, there’s two threads here — the first is that the vehicle must be an appropriate one for commercial use, and the second is that you must show some sort of documentation that proves that you require the use of such a vehicle. We checked with the Department of Transport, and here’s the reply we received:

"Motor tax is based on both the construction and use of a vehicle.  To be taxed as a goods vehicle, a vehicle must be constructed or adapted as a goods vehicle and must be used solely for the carrying of goods in the course of trade or business.  Under Article 3 of the Road Vehicles (Registration and Licensing) (Amendment) Regulations 1992 (S.I. 385 of 1992), a licensing authority (motor tax office) must be satisfied that the licence (motor tax disc) being applied for is the appropriate licence for the vehicle concerned.   It is open to the relevant motor tax office to seek whatever documentation it deems appropriate in support of an application for a particular rate of motor tax.  In the case of an application for the goods rate of motor tax, such documentation may include a certificate of commercial insurance, a Tax Clearance Certificate, evidence of registration for tax or registration for VAT (if turnover for VAT exceeds the relevant thresholds set down by the Office of the Revenue Commissioners) or, at the discretion of the licensing authority, any other appropriate documentation that would indicate that the applicant is in trade or business. It is up to the individual concerned to provide whatever evidence is required by the licensing authority in order for it to be satisfied that the applicant is entitled to claim what is in effect a concessionary rate of tax."

Neil Briscoe - Complete Car Advisor
@neilmbriscoe


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