Are electric cars subject to new import taxes?
Importing a fully electric car from the UK: are these still VRT and VAT exempt, as fully electric cars, up to the limit of €35k? Importing a fully electric car from NI: is this as above as well?
Regards, Donal
Donal Murphy (Cork)Feb 2021 Filed under: electric cars
Expert answer
Hi Donal,
They’re not VRT exempt; it’s that Revenue applies a rebate of VRT, up to a maximum of €5,000, on an imported electric car, as long as it’s a regular production model, up to a maximum OMSP of €50,000 (that’s the current Irish market value as defined by Revenue). So, as a rough example, if the car you’re importing has an OMSP of €35,000, you’ll technically pay VRT of seven per cent, at €2,450, but that is obviously covered by the VRT rebate, so you effectively pay nothing. However, the car has an OMSP of €60,000, you’ll pay €4,200 in VRT and won’t get any rebate.
If you’re bringing a car in from the England, Scotland or Wales, even if it’s an EV, you’ll be liable for 21 per cent VAT (charged on the OMSP value) and ten per cent import duty (charged on what you paid for the car plus the costs of getting it here). If you're bringing it in from Northern Ireland, as long as it’s either previously been registered to a person or company resident in the North, or you’ve bought it from a dealer, then you won’t pay the import duty, and you’ll only be charged VAT if the car is younger than six months, or has fewer than 6,000km on the clock.
Will I buy a car in UK before moving home?
Hi there,
I read your excellent article on importing from the UK with the new rules. I'm Irish, living in UK but moving back home next August. I'm looking at buying here and bringing it home, and could buy now or closer to August. I see that I would owe a NOx levy, VRT of probably 31% OMSP for the model I want, plus 10% customs plus 21% VAT, so a minimum of 62% of OMSP. Seems totally prohibitive but I understand the rationale.
My question is - does having the car and owning it here for more than six months affect the VAT and customs duty? If I had owned a car here and was moving across to Ireland would I still need to pay 60% plus of the car's market value just to register it in Ireland?
Regards
A
A Rogers (London)Feb 2021 Filed under: importing
Expert answer
Hi Ailin,
OK, I think the best advice is to buy as soon as you possibly can. According to Revenue, you MAY be able to claim exemption on VRT, VAT and customs duty if you’re bringing your car in as part of a permanent move. You need to have owned the vehicle for ‘at least six months’ so being as we’re into February already, the clock is ticking. Make sure you keep every receipt and proof of address, road tax and insurance (and maybe keep them for the car you have now too, just to extend the paper trail).
Can I pay the old import taxes etc. pre-2021?
Hi.
If a car was already brought into this country in November/December from the UK, will the new import duties and VAT apply when re-registering the car in Ireland or will it be under the old system as it was imported prior to December 31?
Sylvie Morrison (Dublin)Feb 2021 Filed under: importing
Expert answer
Hi Sylvie,
Unless there are extenuating circumstances, the taxes etc. are calculated when the car is presented for inspection. So, I'm afraid you're likely to have to pay the new fees. On top of that, you're supposed to inform Revenue of the car's importation within seven days and book an inspection within 30 days. Failure to do that means a fine. That fine increases the longer you wait, too, so don't delay any further.
Can I get commercial tax?
I am thinking of buying a Ford Ranger. While I won't use it for work purposes, I keep horses and need a vehicle for towing. Can I get commercial tax on these grounds?
Gerard Kelleher (Limerick)Feb 2021 Filed under: taxation
Expert answer
Hi Gerard,
No, it doesn't sound to me that you can. However, you can change the status of the vehicle from commercial to private. Just call your local motor tax office to do that. You'll pay tax based on the engine size, though, which can be expensive. And, perhaps more troublesome, it's not always easy for a private individual to insure what was previously registered as a commercial vehicle. Do some ringing around before you commit to it.
Read Buying a commercial vehicle for private use for more
How much to tax a Ranger privately?
How much will I pay to tax a 2021 Ford Ranger Wildtrak 2.0 manual for private use?
Paul Kelly (Dublin)Feb 2021 Filed under: taxation
Expert answer
Hi Paul,
It goes by the engine size when you're taxing a commercial vehicle privately, so it works out as €710 per annum for that Ranger. Read these for more info:
Can I have full VRT break down for the ID.3?
I'm trying to get my mother onto the disabled passenger scheme that means they'll give you a refund of VAT and VRT every second year.
Take the Volkswagen ID.3: your site quotes prices net of delivery, VRT and SEAI grant. Can you tell what an ID.3 would cost net of VRT as well? There's a limit on that scheme of €16k every two years on disabled passengers compared to €10k for driver scheme so taking max benefit of grant can I get breakdown of car with no grant list price maybe including other charges minus VAT minus VRT minus SEAI grant. Or is the SEAI grant part of VRT, ie one or the other?
Thanks
Tom Richardson (Tipperary)Feb 2021 Filed under: electric cars
Expert answer
Hi Tom,
OK, so rather than run our bad-home-school-maths brains over this, we just went straight to the source, Volkswagen Ireland, and asked for a break down of the figures for us.
So, here goes:
So a Hilux taxed privately is by engine size?
Do I understand correctly that if I tax a two-door, two-seat brand new Toyota Hilux as private, it's taxed per the engine size of 2,393cc, not per the CO2 emission rating?
Thank you.
Martin Heff (Tipperary)Feb 2021 Filed under: taxation
Expert answer
Hi Martin,
That's 100 per cent correct. It would make the Hilux €1,034 per annum to tax. More reading for you, though it sounds like you already know your stuff:
Should I buy a Tesla Model 3 now?
I am thinking of buying a Tesla Model 3 instead of a Peugeot e-2008. Good idea? Should I wait for a possible M3 price drop? Do you think it may happen over the coming months? Or should I get one before the 21-23% VAT increase? Tough, perhaps impossible to know when to take the plunge.
Thank you.
Peter Dublin (Dublin)Feb 2021 Filed under: choosing new car
Expert answer
Hi Peter,
I doubt very much that the Model 3 is going to drop in price very much in the coming months, not least because it’s actually already pretty good value. Definitely a good idea to buy before the VAT goes back up though, as that will be a roughly two per cent saving on the price. Not much, but it helps.
As for should you buy one in general? I think so — it’s a hugely impressive car, and the question marks over build quality seem to be getting smaller all the time. Do be wary of the big screen, though, and make sure you ask if the improvements to it mandated by the recent safety recall have been carried out on the car you’re buying.
The Peugeot is a good small crossover, but there's a gulf between it and the Tesla in terms of performance. Big difference in price and space too.
How to go about taxing a van privately?
I’ve got a 2010 Citroen Dispatch 2.0-litre van and I’m just wondering how I go about getting it taxed privately for the first time and how much it would be?
David Mc Tiernan (Roscommon )Feb 2021 Filed under: taxation
Expert answer
Hi David,
The actual process of changing the tax status on a van from commercial to private use is relatively straightforward — you simply ring up your local motor tax office (you’ll find your nearest one here: https://www.gov.ie/en/service/1fc151-find-your-local-motor-tax-office/) and tell them what you want to do. They’ll then shift you onto the old engine capacity-based tax system (you’ll pay €710 a year for a 2.0-litre engine) and the job’s done.
Except it isn’t, quite. You will need proof of insurance first, and insurers are — for some reason — reluctant to switch policies over. It’s worth finding a good local broker to help you get the insurance sorted out first of all.
Read Buying a commercial vehicle for private use for more info.
How to change a Range Rover Sport's status?
Hi guys,
I am looking to buy a 2013 Range Rover Sport, a 3.0-litre diesel that is currently designated as a business commercial vehicle with €333 tax. There are five seats and no VAT on the sale off the vehicle. Once purchased, I wish to tax it privately and also insure it privately as a passenger car. Can you outline this process and if it’s straightforward and possible?
Thanks
Frank
Frank Mitchel (Dublin)Feb 2021 Filed under: commercial vehicle
Expert answer
Hi Frank,
The process of taxing it is relatively straightforward — just ring up your local motor tax office (list here: https://www.gov.ie/en/service/1fc151-find-your-local-motor-tax-office/) and ask them to switch you over. The problem is twofold — with a 3.0-litre Range Rover Sport, you’re going to be paying the second-highest rate of motor tax (€1,494 per year) because a commercial re-registered for private use is taxed on the old engine capacity-based tax system. Insurance can also be a major issue — it shouldn’t be, but it is, so get hold of a good local broker to help you navigate those waters before you take the leap.
Read Buying a commercial vehicle for private use for more information.