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.
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.
What's happening with my Audi Q7?
Hello,
I've been driving a beautiful Audi Q7 for just about a month. Is it a big deal that the start-stop just completely stopped working? Also, the front parking sensors are no longer going off when I pull up in front of another vehicle or when I pull into the garage; however, when I back up it works.
Can you please give me some advice?
Janie Sawaged (Bellevue)Nov 2018 Filed under: fault
Expert answer
Hi Janie,
On the parking sensor issue, it just seems to be a bit of a quirk with the Audi Q7 that to get the front sensors on when moving forwards, you have to press the parking sensor switch, although they do, as you point out, come on automatically when you select reverse. We’re not sure why this is, but it might be worth a visit to your dealer to see if there’s some finicky bit of software code that can be re-set to activate them automatically at low speeds.
As for the stop-start system, if could be a few things. Obviously, there may be a fault, in which case get the car booked into your dealer for a check-up. Or it could be that you’re doing a lot of low-mileage, short runs, which aren’t allowing the engine and other systems to get fully up to temperature. Stop-start isn’t a simple on/off system — it’s controlled by the engine management and that won’t let stop-start activate if it thinks that the engine hasn’t warmed up enough (stopping and starting a cold engine can be damaging) or if it has detected that you have a lot of high-energy drain systems (air conditioning, demisters etc) running. Try and analyse your driving the next time you go out and see if any of this fits. If not, head for your dealer.
Do I need to pay VRT on a 2018 model?
Hi,
I wish to import a UK car into Ireland. It's a 2018 model, but over six months old - do I have to pay VRT?
KEVIN SHORTT (DUBLIN)Oct 2018 Filed under: VRT
Expert answer
Hi Kevin,
How much to privately tax a van?
I want to tax a crew cab five-seat van privately; how much will it cost me?
Jimmy Mcgrath (Waterford)Oct 2018 Filed under: taxation
Expert answer
Hi Jimmy,
It’s an odd one — when you tax a commercial vehicle as a private car, it reverts from the CO2-based tax system back to the old engine-capacity system, so it will depend on the engine that’s in the van. Just as a guide, 1.6 tax is €514 a year, 2.0-litre is €710 and 2.5-litre tax is €1,080.
Is a pick-up with seats a commercial vehicle?
Is a pick-up with seats in the back considered a commercial vehicle?
Joe Healy (Cork)Sep 2018 Filed under: pick-up
Expert answer
Hi Joe,
Assuming you mean a crew cab design with the seats separate to the load bay, then yes that would be considered a commercial vehicle. Note, though, that a vehicle such as that, registered and taxed as a commercial vehicle, cannot be used for any private reasons whatsoever.
What tax do farmers pay on their tractors?
What tax do farmers pay on their tractors?
Pat McMahon (Carrickmacross)Sep 2018 Filed under: taxation
Expert answer
Hi Pat,
The annual motor tax rate for a tractor or excavator is €102.
Thoughts on the 2012 Kia Ceed diesel?
2012 Kia Ceed diesel: is this a reliable car? I've found a private seller with one for €6,000 - is this good value?
PATRICIA PLUNKETT (Ballyhaunis)Aug 2018 Filed under: reliability
Expert answer
Hi Patricia,
A price of €6,000 for a 2010 Ceed from a private seller isn’t bad, but it’s worth pointing out that there are dealers offering similar models for similar money, so that’s worth bearing in mind. Ceeds are very reliable, and a 2012 car should, if it’s been serviced at a Kia dealer the entire time, still have two years of its original manufacturer's warranty to run. Keep an eye out for creaking and squeaking interior panels and issues with the stereo system, but other than that they’re pretty robust.