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 John,

If you have that 77g/km right, then yes, that's absolutely correct. See our How Much VRT is Paid in Ireland? feature for full details.

Expert answer

Hi Brian,

I'm afraid we have no way to reliably get that figure and, if a car is presented for inspection without acceptable proof of the figure, the maximum will be assumed. That maximum is €600 for a petrol car. Bear in mind that, in 2022, that car would be considered a classic and would not be subjected to the NOx levy if imported and registered then.

Read our How Much VRT is Paid in Ireland? feature for more.

Expert answer

Hi Jim,

Yes it will. The WLTP-ratified CO₂ emissions figure for that car is below 50g/km, so it sits in the lowest VRT band, at seven per cent of the OMSP.

Relevant links:

BMW X5 xDrive45e hybrid review

How Much VRT is Paid in Ireland?

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 Janice,

I'm afraid there is every chance that the VRT will change the price, as the VRT is calculated when the car is registered, not when it is ordered. You should contact the dealer to get clarification as soon as possible.

Expert answer

Hi Dermot,

Very likely, yes although it’s important to add a ‘we simply don’t know for certain’ caveat to all this, not least because literally nothing about Brexit makes any sense. 

If the UK finally does leave without a deal, then you can expect to pay at the very least customs duty — 10 per cent of the price of the car plus shipping costs — and possibly VAT on top of that, depending on what view Revenue takes of UK VAT payments. Then there’ll be VRT costs and the NOx levy on top of those. 

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 Yvonne,

If you’re a disabled driver or passenger, you’re entitled to claim back, or in some cases not pay in the first place, both VRT and VAT on a new car, as well as not needing to pay VAT on the cost of any modifications needed to the vehicle to adapt it to your particular abilities.

However, right now there’s a crisis in the system. The problem is that the issuing of primary medical certificates, which are needed to confirm a person’s disability and therefore their meeting the criteria for the scheme, has been suspended following a supreme court judgement against. The Government, and the Minister for Finance have said they are working on a potential solution to the issue (which surrounds the competence of the Disabled Drivers Medical Board of Appeal to refuse the issuing of a certificate) but right now, if you’re waiting for a Primary Medical Cert, you’re sort of stuck.