Expert answer

Hi Gerard,

None of the changes announced in Budget 2021 relating to motor tax take effect until 1 January 2021. Even so, there are no changes planned next year for taxation of commercial vehicles, so assuming you are registering the Trooper as a commercial vehicle, and not using it for any private use at all, its annual rate of tax is just €333.

Read our Motor Road Tax Prices in Ireland Explained feature for more.

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 Con,

No, not that we've seen. It appears to be unchanged. Details here:

Motor Road Tax Prices in Ireland Explained

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 Dermot,

If the car is already registered, or will be before the end of 2020, then it will be taxed according to the old system, and will continue to be even after 2021. That would be in Band A3, costing €190 per annum.

If a new car is registered after 1 January 2021 with emissions of 109g/km then its annual tax will actually be a little less, at €180 per annum.

Read our Motor Road Tax Prices in Ireland Explained feature for full details.

Expert answer

Hi Dympna,

The motor tax on that Micra won't be changing due to the new tax bands announced yesterday in Budget 2021. Our information is that your car emits 99g/km of CO₂, so it's in Band A2 costing €180 per year. That is not set to change. 

Read Motor Road Tax Prices in Ireland Explained for full details

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?

Expert answer

Hi Larry,

You're not the only one confused, believe me!

Looking at the Toyota Ireland website, we can see that that WLTP CO₂ emissions rating for that car is 131g/km. That means it will fit into the new 131 - 140g/km band, costing €210 per annum.

Read our Motor Road Tax Prices in Ireland Explained feature to see all the tax bands and schemes.

Expert answer

Hi Terence,

It's not entirely clear as yet, as Audi has not published its new pricing, and doesn't appear to have changed its online pricing since the VAT reduction last month. 

Taking the Audi A6 40 TDI S line S tronic as an example: it's listed as €56,065 as of Jan 2020.

The NOx figure for that car is 41.9mg/km, so the NOx levy right now, within that price, is €5 x 41.9 = €209.

So, the price of the car including VAT and VRT, but without the NOx levy is €55,855.

Looking at our review of the Audi A6 40 TDI from 2018, the NEDC CO₂ rating appears to be 117g/km, which would mean 17 per cent VRT on the old system.

So, the VRT was €55,855 x 0.17 = €9,495, which makes the price of the car including VAT at €46,360.

Assuming that's at the 23 per cent VAT rate, it's €37,691 before VAT, or €45,606 at the current 21 per cent VAT rate.

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

We need the WLTP CO₂ rating. It varies according to equipment, so let's take the worst case of 158g/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 €45,606 ÷ 0.74 = €61,630

The NOx levy calculation has changed a little as well. It works out as €238 for this car.

Hence, the estimated total retail cost of the car is €61,868 as of 2021.

With a CO₂ rating of 158g/km as used in these calculations, the annual motor tax (see our Motor Road Tax Prices in Ireland Explained feature) will be €280.

If I used the minimum CO₂ rating for this model of 145g/km, incidentally, the retail cost comes out as €56,891 so the final price is highly sensitive to that, while the motor tax would drop just €10 per year to €270.

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

Expert answer

Hi Thomas, 

It certainly will.

The NOx levy calculation has been tweaked slightly, as detailed in our How Much VRT is Paid in Ireland? feature, with the €15 per mg rate starting earlier on.

The changes to the VRT bands will also likely have an effect, but the largest change is the 'uplifting' of the CO₂ rating to WLTP-equivalent values.

For a petrol car, the new CO₂ rating = (old NEDC rating x 0.9227) + 34.554g/km

For a diesel car, the new CO₂ rating = (old NEDC rating x 1.1405) + 12.858g/km

This will significantly raise the CO₂ rating, putting the imported cars into a higher VRT band, with likely much higher costs.

We did such a calculation for another reader here if you're interested: Should I register my imported Mercedes now?