Expert answer

Hi Ciara,

You're right, the value Revenue places on a car does reduce as the car gets older. However, I suspect in your case that that would be offset by the new VRT bands from 1 January 2021. Your car's CO₂ figure will be 'uplifted' to a higher equivalent WLTP figure, which is very likely to increase the VRT rate you would pay. Read these articles for more information, but I'd suggest you're better off registering that car before January if possible:

How Much VRT is Paid in Ireland?

Guide to Importing Cars from the UK

Expert answer

The short answer Joe is that we don’t actually know.

Officially, the Government is saying that the VRT rebate for electric cars will remain, but will be effectively replaced by the new seven per cent VRT band for the lowest-emissions vehicles. As you point out, that relief is reduced when the car has a price tag of above €40,000 — it chops the VRT rebate in half. Stray above €50,000 and there’s no more rebate at all. For now, the SEAI grant of €5,000 remains in place but that will be phased out over time. How much time and how much phasing? We don’t know yet.

The zero-rate Benefit-in-Kind tax remains in place up to the end of 2023, and will quite possibly be renewed in the Budget for that year, but no announcement has yet been made. 

As far as the rebate is concerned, most of the Irish importers are now scrambling to try and adjust their prices, and indeed are in negotiation with the European and global head offices so that, come January, the current rebate-inclusive prices will remain more or less in place under the new system.

Basically, and not for the first time, the whole motor tax system has been thrown up into the air and we’re all scrambling to understand it fully before it comes crashing back down.

Keep an eye on our How Much VRT is Paid in Ireland? feature for more as it happens.

Expert answer

Hi Philip,

Kind of, yes. You are specifically allowed to breach the 5km limit to ’shop for essentials’ and it could, we suppose, be argued that making sure your car is in good running order, in case of emergencies, falls into that category. It’s a matter of interpretation though, so don’t quote us to any Gardai who happen to pull you over...

Expert answer

Hi David,

You're right, the VRT bands change for cars registered after 1 January 2021 and a car with CO₂ of 46g/km would attract VRT of just seven per cent then. However, if that's a NEDC figure, Revenue will 'uplift' it with its own formula to what it calls 'WLTP-equivalent', which in this case would be 77g/km. The VRT rate would therefore be nine per cent.

Who knows when it comes to Brexit? Anything could happen, couldn't it? A no-deal Brexit could mean 10 per cent surcharge (calculated on the cost of the car and shipping) plus VAT on top of that as well.

A few relevant links for you:

How Much VRT is Paid in Ireland?

Guide to Importing Cars from the UK

Expert answer

Hi Eamon,

If you're buying and registering this as a commercial vehicle, with no private use, then it doesn't matter if you do it now or after 1 January 2021, as commercial vehicle tax and VRT have not changed. See below for more information:

Motor Road Tax Prices in Ireland Explained

How Much VRT is Paid in Ireland?

Guide to Importing Cars from the UK

Expert answer

Hi Con,

Assuming that the car is registered here already, and that it has CO₂ emissions of 132g/km, there will be no change for 2021. The car is already in Band B2, costing €280 per annum.

However, if this car were to be imported and registered after 1 January 2021, its CO₂ emissions rating would be 'uplifted' to 163g/km, meaning annual motor tax of €420.

See below links for more:

Motor Road Tax Prices in Ireland Explained

Guide to Importing Cars from the UK

Expert answer

Hi Dermot,

The rate from 2021 will be 13.5 per cent for a car with 109g/km. 

Be careful though, as an imported car's CO₂ figure will be 'uplifted' to a WLTP-equivalent value and that will in turn bring the VRT rate up.

Read our How Much VRT is Paid in Ireland? feature for more details and also Guide to Importing Cars from the UK.

Expert answer

Hi John,

First of all, the VRT applies on the date of registration, so it doesn't matter when the order is placed. If you register a car after 1 January 2021 then it will be subject to the new VRT rates.

Now, BMW has not published its new pricing so we're going to have to do some estimating based on the current advertised price on the BMW Ireland website. To do that I am also assuming that the displayed value of the BMW X3 xDrive20d xLine, €57,859, is at the 21 per cent VAT rate introduced last month.

The NOx figure for that car is not readily available, but a bit of digging suggests it should be about 100mg/km, so the NOx levy right now, within that price, should be €1,085.

So, the price of the car including VAT and VRT, but without the NOx levy is €56,774.

According to BMW, the NEDC CO₂ rating is 126g/km, which would mean 18 per cent VRT on the old system.

So, the VRT was €56,774 x 0.18 = €10,219, which makes the price of the car including VAT at €46,555.

So now we have the core cost of the car and can work on a 2021 price estimate.

We need the WLTP CO₂ rating, but can't find it for that car. So let's apply the government's own 'uplifting' formula for diesel cars' NEDC CO₂ rating: WLTP CO₂ rating = (126g/km x 1.1405) + 12.858 = 157g/km.

That places it in the new Band 18 for VRT (see our How Much VRT is Paid in Ireland? feature), at a rate of 26 per cent.

So the estimated cost of the car including VAT and VRT is €46,555 ÷ 0.74 = €62,912.

The NOx levy calculation has changed a little as well. It works out as €1,300 for this car from 1 January 2021 (if the 100mg/km figure for its NOx is correct).

Hence, the estimated total retail cost of the car is €64,212 as of 2021.

Disclaimer: All of these figures should be taken as estimates only. We have rounded off to Euros throughout and who knows how BMW will adjust its pricing to suit the market rather than just calculate the new tax?

Expert answer

Hi Kieran,

Our understanding is that the €5,000 VRT rebate will continue for electric cars with an OMSP (Open Market Selling Price) of under €40,000 and will be tapered from that to zero rebate for cars with an OMSP of over €50,000. Hence, most of the cars you mention shouldn't see much of a price change, though we don't yet have sight of how the rebate changes for cars with an OMSP of between €40,000 and €50,000.

For reference:

The Mazda MX-30 currently costs from €30,495 including SEAI grant and VRT rebate.

The Peugeot e-208 currently costs from €27,334 including SEAI grant and VRT rebate.

The Honda e currently costs from €29,995 including SEAI grant and VRT rebate.

The Nissan Leaf currently costs from €29,890 including SEAI grant and VRT rebate.

The Tesla Model 3 currently costs from €47,990 including SEAI grant and VRT rebate.

Expert answer

Hi Brian,

There's no doubt that it will be cheaper for you to get that car registered before 1 January 2021.

On that date, the CO₂ rating will be 'uplifted' to an equivalent WLTP value. For your car, for example, it will be increased from 166g/km to 202g/km, raising the VRT rate from 27 per cent now to 37 per cent in 2021. The NOx levy will also increase a little. 

In terms of motor taxation, if you register and tax the car now, its motor tax will be €570, which will increase to €600 from 2021 on. If you wait until after 1 Jan to register it, then your annual motor tax will be €1,250.

Useful relevant articles for you:

Motor Road Tax Prices in Ireland Explained

How Much VRT is Paid in Ireland?