Expert answer

Hi Neil,

For cars, the motor tax band is determined by the CO₂, as you said, but for vans it works differently. When a van is used purely for commercial reasons it's a flat rate of €333, but if the van is actually to be used for any private reasons, it has to be taxed as a private vehicle.

And for some bizarre reason, the rate it is then taxed at is determined not by its CO₂ rating, but by its engine size. Hence the weird situation you've described above where the Peugeot van's engine (1,501-1,600cc in size) means it costs €514 a year to tax for private use, while the CO₂ emissions of the Rifter (141-150g/km) mean it only costs €270 a year. 

Hopefully that explains what's happening anyway, weird as it seems. 

Expert answer

Hi Paul,

As a passenger vehicle, the VRT cost will depend on the Open Market Selling Price (OMSP) and the VRT band. The latter is determined by the CO₂ rating, which for that model means the highest with emissions of well over 191g/km. VRT is therefore 41 per cent of the OMSP.

Unfortunately, the OMSP is nothing to do with the price you pay for the car. It's the figure Revenue believes the car to be worth in Ireland. That's not very easy to guess at for a rare model such as the Defender. For the purposes of our calculations let's assume it's €40,000, but you may know Irish values of these cars better so adjust the figures accordingly.

At an OMSP of €40,000, the VRT alone would be €16,400.

You will also have to pay the NOx levy on top of that. This can be up to €4,850 for diesel models and unfortunately the Defender is likely to attract the top value.

Assuming the Defender was imported into Northern Ireland and used there by someone (i.e. not just a car dealer), then you should not be liable for VAT or customs duty, but you will need to be able to prove its status to Revenue when importing it.

Motor tax in Ireland will be at the top rate of €2,400 per year.

A few useful guides for you:

Motor Road Tax Prices in Ireland Explained
Guide to Importing a Car from Northern Ireland
How Much VRT is Paid in Ireland?

Expert answer

Hi Paschal,

You can avoid VAT and import/custom duties completely if the car was imported into the North and then used there by someone (i.e. not just imported by a car dealer to sell on) or indeed if it was registered in Northern Ireland when new. You will need to have paperwork to prove this to Revenue on import to the south. And of course you will have to pay VRT and the NOx levy regardless.

Expert answer

Hi Thomas, 

Taxed as a commercial the price is a fixed €333 per year, but if you mean taxing it privately, which reverts to the old by-engine-size system, then the 1.6 diesel Partner would cost €514 per annum.

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Hi Peter,

Not sure where you heard that. The first service is just €240, including parts, labour and VAT.

Expert answer

Hi Bill,

Just check when the car arrived in Northern Ireland first, and from where. If it was imported from the EU after Brexit then there may be consequences, but otherwise no.

Expert answer

Hi Dean,

If the car was not imported into the North properly then you may well be liable for custom duties and VAT as well as VRT. You need to determine whether it is considered to be a Northern Ireland vehicle or a GB import.

Expert answer

Hi Aurel,

I don’t believe there is any way for you to avoid paying VAT on importation into Spain in that manner unless you meet specific residency or relocation exemptions.

And unless you actually use the car in Northern Ireland for a reasonable period of time – and can prove it – the Spanish authorities are likely to view this as a tax avoidance scheme and will also charge you custom duties.

Expert answer

Hi Michael,

To qualify for commercial tax rates, the Range Rover must have had its rear seats removed and a bulkhead fitted. Or be previously classed as an “N1” commercial. You can’t just bring in a regular SUV such as the Range Rover and tell Revenue it’s a commercial, even if you do have a legitimate business.

Expert answer

Hi Dan,

Looks like you’re on the right track, yes. The change of ownership may be possible online if the van has the newer digital VRC (vehicle registration certificate - i.e. the logbook) and needs to be done by the company.

If you plan on using the van for any private use whatsoever then yes, you will need to change the motor tax, which is done at your local motor tax office. Note that the rate depends on the engine size of the van and that you’ll need insurance before you can do that.

I’d suggest looking into the insurance before you do anything else, as it can sometimes be tricky finding private insurance on a commercial vehicle.