Expert answer

Hi Catherine,

It will depend on the car's CO₂ rating. We believe that is 163g/km. Assuming that this car is already registered in Ireland, then the annual motor tax for that car is €570 up to the end of 2020, and €600 thereafter.

Full details on the Irish motor tax system can be found in our Motor Road Tax Prices in Ireland Explained article.

Expert answer

Hi Daniel,

In brief, CO₂ emissions used to be measured on the 'NEDC' test, which was found to be inadequate. It was replaced by the new 'WLTP' regime, which still measures CO₂ and outputs the rating that will be the only one used going forward.

So, the VRT and motor tax of an import, if it is registered after 1 January 2021, will be based on the WLTP CO₂ rating if it exists. If it does not exist, then Revenue 'uplift' the NEDC CO₂ rating according to a formula it has devised.

In the case of the 2020 Tiguan you mentioned, the 168g/km figure would be used. That means VRT of 26 per cent and annual motor tax of €420.

I recommend you read our three relevant guides, which have been updated since Budget 2021:

Motor Road Tax Prices in Ireland Explained

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 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 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 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. 

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 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?