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VRT and tax implications for imported Kombi?

Hi,

I am a teacher as well as part-time farmer. I am looking at changing my car and buying a Volkswagen Transporter Kombi to access outfarm, feedstuff etc. I am looking at sourcing in the UK, but not sure of VRT and then taxing the van. It would be used for farm as we have another family car. The van would be 2016 approx €25,000 euro. Can you advise to VRT rates and tax implications?

James McLoughlin (Sligo)

Jan 2019 Filed under: VRT

Expert answer

Hi James,

It depends on exactly what Kombi version it is. You see, under the recently changed rules for N1 commercial vehicle VRT and tax, if the van has fewer than ten seats, and the seats and cargo area are all in the one section, then it technically counts as a passenger car and you’ll be paying VRT at either 28 per cent or 31 per cent of the OMSP, and then passenger car motor tax too in Bands D or E.

If it has three or fewer seats, or if the cargo area is physically separated from the seating area, then it counts as a crew-van and you’ll pay 13.3 per cent of the OMSP, but to tax it as a private vehicle you’ll have to put it on the old engine capacity rating (why this is still in use we’re not sure, but it is) and that’ll be €710 a year assuming it has the 2.0-litre TDI engine. 


What do you think of VRT rates and imports?

I understand that the import duty tax has risen from 10 per cent to 11 per cent as of 1/1/19. Do you think it should or could increase again after Brexit in order to help save the motor trade in the Republic and to try persuade people to stay and buy Irish? I feel that if the import duty tax went to 12.5 per cent it would stop people going to England or up North. What is your opinion on the matter?

Patrick Devitt (Dublin)

Jan 2019 Filed under: importing

Expert answer

Hi Patrick,

Well, sadly, it’s just not that simple. The one per cent surcharge for Vehicle Registration Tax applies only to diesel-engined vehicles, and it’s not a flat-rate rise from ten per cent to 11 per cent, but a one per cent rise across all the VRT bands. VRT has always been something of an iniquitous tax. The thing is that, potentially, you’re right; a VRT increase could possibly dissuade buyers from shopping in the UK, and send them back to Irish forecourts, but only if it were applied to private imports, rather than new registrations through a dealer. That’s problematic too, though, as many dealers actually shop for second hand stock in the UK, given the tendency of Irish cars to be low in spec and small in number. Would such a new tax apply to those imports? Should it? If not, is that unfair to those private individuals who are merely ’shopping around’ for the best value? And given that, technically, every car brought into the state is an import, where does one draw the line when it comes to manufacturer imports versus private imports? VRT is many things, both right and wrong, but one thing it’s sure not is simple.


How much to tax a Citroen van privately?

How much would it cost to tax my 2012 1.6 Citroen Berlingo van privately?

John Butler (Kilkenny)

Dec 2018 Filed under: taxation

Expert answer

Hi John,

It’s a bizarre situation, but when you tax a commercial vehicle as a private car, you revert to the old, pre-2008 by-engine-capacity taxation system. No-one can give us a good reason as to why this is, but it’s the system that’s in place. It’ll cost you €514 a year to tax a 1.6-litre engine. 


Am I paying the correct tax on my Audi?

Hi,

I own a 2009 Audi A3 petrol and wondered if I'm paying too much road tax as many seem to think so including staff of car tax office, due to the year as the new regulations were brought in 2008. Was advised to go to NCT by staff at tax office, however NCT says it only deals with imported cars. How can I get the assessment on CO2 rechecked?

S. Farrell (Kilkenny)

Dec 2018 Filed under: taxation

Expert answer

Hi there,

By 2009 all cars on sale will have been on the current CO2-based tax system, so if you think you’re paying too much, then you need to go back and check up the figures for the model you own. The A3, in 2009, came with a choice of four petrol engines — 1.4, 1.8 and 2.0-litre turbos - and an older naturally-aspirated 1.6 petrol. There’s quite a bit of difference between the engines when it comes to CO2 figures. The 1.4 turbo has rated CO2 emissions of 139g/km, which would mean motor tax of €280 a year, which I guess isn’t too bad. The older 1.6 engine, in spite of having 20hp less, has CO2 emissions of 162g/km, putting it in Band D, with an annual tax bill of €570. The 1.8 160hp engine has 155g/km emissions, which just scrapes into Band C, with €390 a year tax, while the 2.0-litre turbo, with its 200hp engine, is in the same boat as the 102hp 1.6 engine, with 166g/km and tax of €570.

If you let us know the precise spec and engine of your car, we might be able to help out more. 


Can I avoid VAT on a nearly-new import?

I bought a car in the UK and took it for inspection. It has just 2,995km the on purchase invoice and so I was caught for VAT. The dealer will buy it back, put the miles on it and then sell it to my wife. I assume I cannot bring it in a second time as this would probably be tax evasion? Since my wife is a separate person am I correct in thinking that Revenue will accept this?

P Johnstone (Co Meath)

Dec 2018 Filed under: importing

Expert answer

Hi there,

This is possibly a bit above our pay grade as it all sounds a bit dodgy. Potentially, yes, you’re right that your wife is a separate legal entity and that they might well accept that, but it’s definitely going to raise some red flags, especially if you share a surname as well as a home address. I would take advice from a tax accountant, and possibly a solicitor, before trying this. 


Road tax cost on a SsangYong Actyon?

What band road tax is a 2009 SsangYong Actyon diesel in?

Nora Colombani (Co Meath)

Nov 2018 Filed under: taxation

Expert answer

Hi Nora,

The Actyon is an oddly difficult car to to find original performance data for, so what follows is a ‘best info available’ rather than a conclusive statement. The best figure we can find for a 2009 Actyon 2.0 Turbo Diesel is 221g/km, which would give it motor tax of €1,250 a year. Which sounds a bit steep...


What's up with my Mondeo's tax?

I have a 2.0 diesel Ford Mondeo, registered in June 2008 and I have to pay on the old tax system. Yet I know someone with exactly the same car registered in July with cheaper tax. How can you explain this? It's not fair to those people who can't afford newer cars!

Stephen Boucher (LETTERKENNY)

Nov 2018 Filed under: taxation

Expert answer

Hi Stephen,

OK, the theory goes that a car registered between January and July 2008 will automatically switch to the CO2-based system at its first renewal if, and only if, it’s beneficial to do so. In other words, and this is according to the Motor Tax office, it’ll stay on the old system if it’s cheaper to do so.

According to what you’ve told us, your car should have switched to the new system no later than June of 2009, but needless to say it’s possible for it to have, for some reason, slipped through the net. I’d think a quick chat with your local motor tax office should sort it out either way. 


Do LPG cars cost less to tax?

Are there any motor tax reductions if my car is converted to use LPG?

Thanks

Dave Walsh (Limerick)

Nov 2018 Filed under: taxation

Expert answer

Hi Dave,

Sadly not. You will save around 50 per cent on the price per litre of LPG compared to petrol or diesel (which in and of itself might be a sufficiently compelling reason to switch), but there’s no tax advantage. A car’s motor tax rate is based on the CO2 figure shown on its certificate of conformity document, and a post-purchase conversion doesn’t change that (even though LPG does have a slightly lower CO2 rating than petrol or diesel). Basically, tax is calculated on the car’s official homologated figure, whereas an LPG conversion is something you do yourself afterwards. 


Motor tax on a 2007 Skoda Octavia?

Car tax on 2007 Skoda Octavia 1.4?

Sam Strahan (Dunleer)

Nov 2018 Filed under: taxation

Expert answer

Hi Sam,

If you take a look at our Motor Road Tax Prices in Ireland Explained article, you'll see that your car falls into the older motor tax system, categorised by engine size. A 2007 Skoda Octavia 1.4's engine measures 1,390cc, so its annual rate of tax is €385.


Can I get low tax on a converted camper?

If I covert a commercial vehicle, say a 2017 Volkswagen Transporter, to a camper van and get it certified etc, will I qualify for the lower rate of road tax?

VINCENT CROWLEY (Cork)

Oct 2018 Filed under: commercial vehicle

Expert answer

Hi Vincent,

Yes, you will. Camper vans qualify for a flat-rate of €102 motor tax and, if the conversion is done properly and the car is re-registered, then that should be fine. Check with your local motor tax office for any paperwork that you’ll need to fill out.