Expert answer

Hi Fionnuala,

If the car was registered in 2012 then it is on the CO₂-based system already. We can only assume it emits well over the 226g/km that gets it into the top tax Band. Until the end of this year that costs €2,350 and it will go up to €2,400 from 1 January 2021.

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

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 Gerry,

Used privately, commercial vehicles are taxed according to their engine size. That's not too bad if you're talking about the older 2.0-litre version of the Amarok, which would cost €710 to tax privately. But if you're referring to the newer model with the 3.0 V6 TDI engine, then I'm afraid it's going to cost €1,494 a year instead. Full details can be found on Motor Road Tax Prices in Ireland Explained and Buying a commercial vehicle for private use.

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 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.