There has been total and absolute confusion w.r.t. the VRT rate to be applied to imports. This resulted in the Dept of Environment changing the Motor Tax system so the new Annual Motor Tax rates will only apply to cars first registered after 01st January 2008, whether in Ireland or elsewhere. The VRT system, as announced in the last Budget, will remain unchanged.
For Imports, please read the following, from www.revenue.ie
QUOTE Vehicle Registration Tax (VRT)
Change to the Tax Base
Current Tax Regime
Before 1 July 2008 VRT on passenger cars (category A vehicles) is charged as a percentage of the Open Market Selling Price (OMSP) of the car. The percentage is dependent on the engine size of the vehicle, with bigger cars paying a higher rate of VRT. All cars fit into one of three rates as follows:
Category Engine Size Rate
A1 Cars up to 1,400cc 22.5% of OMSP
A2 Cars 1,401 to 1,900cc 25% of OMSP
A3 Cars over 1,900cc 30% of OMSP
A minimum of €315, is payable regardless of the VRT rate charged on a vehicle.
New Tax Regime
From 1 July 2008, VRT payable on category A vehicles will no longer be based on the engine size but rather on the level of CO2 emissions from the car. Linking the VRT rates to the level CO2 emissions will mean that individuals purchasing cleaner, low emission cars will pay less VRT while those opting to purchase higher emitting vehicles will pay more.
A seven-band CO2 emission system will apply. VRT will now be charged as a percentage of the OMSP in accordance with the following table:
CO2 Emissions (CO2g/km) VRT Rates
0 - 120g 14% of OMSP
More than 120g/km up to and including140g/km 16% of OMSP
More than 140g/km up to and including 155g/km 20% of OMSP
More than 155g/km up to and including 170g/km 24% of OMSP
More than 170g/km up to and including 190g/km 28% of OMSP
More than 190g/km up to and including 225g/km 32% of OMSP
More than 225g/km 36% of OMSP
The new system of taxation will be applicable to new and imported category A vehicles.
As the new VRT rates differ from the current rates, the new regime is likely to impact on the VRT to be paid on all passenger cars registered after 1 July 2008. Thereafter, cars with lower CO2 emissions will have their VRT rates reduced. Reductions can be expected across the range of lower emitting vehicles. At the other end of the scale, larger, luxury and high performance models with higher CO2 emissions will be subjected to an increase in the VRT charged.
Implementation.
New Vehicles
Before a new model is put on sale in Europe, it must undergo a series of tests to ensure that it has achieved approved standards regarding safety, environmental impact, etc. This process is called Type Approval and each car achieving the approved standards is issued with a Certificate of Conformity. A distributor or main dealer must have a Certificate of Conformity for each vehicle that is sold. This certificate contains technical information about the vehicle, including information relating to the level of CO2 emissions. This level will determine the rate at which VRT will be charged. For customers who buy a car through a dealer or distributor, there will be no change in the registration procedures, as the car will be registered on their behalf by the dealer or distributor.
If a customer wishes to import and register a new car privately, then the level of CO2 emissions must be declared on the VRT3 form. The Certificate of Conformity showing the level of CO2 (located at point 46) must be presented with the VRT3 form at the time of registration.
Imported Second-Hand Vehicles
When an imported second-hand vehicle is presented for registration, the levels of CO2 emissions at the time of manufacture must be declared to Revenue on form VRT4 (the form used by an individual to register a second hand car).
If the vehicle originated within the EU, the declaration must be supported by documentary evidence confirming the level of CO2 emissions of the vehicle to the satisfaction of Revenue.
Revenue will accept a range of documentation for this purpose. Among the documents deemed satisfactory at present are:
* the Certificate of Conformity (if it is available),
* a printout from the Revenue ROS Enquiry System where the level of CO2 emissions is shown www.ros.ie Opens in a new window
* evidence included on a previous registration document e.g. the UK V5,
* the level of CO2 emissions stated on a previous National Car Test performed elsewhere within the EU provided the CO2 stated is that given at the time of manufacture,
* A print out for the vehicle from the DVLA Opens in a new window (Driver and Vehicle Licensing Agency) web site, www.vehiclelicence.gov.uk Opens in a new window
* A printout from the VCA Opens in a new window (Vehicle Certification Agency) web site
* A printout from the SEI Opens in a new window (Sustainable Energy Ireland) website
* A certificate from the manufacturer or main distributor stating the level of CO2 emissions.
If the vehicle originated in Japan, documentary evidence of the level of CO2 emissions will also be required.
The following documentation must be presented with the VRT4:
* Japanese Export Certificates or Japanese Certificates of Cancellation of Motor Vehicle Registration,
* a printout from the Japanese Ministry of Land, Infrastructure and Transport showing the level of CO2 emissions for the model on the certificate
Revenue are currently reviewing the additional documentation that may be required for vehicles imported from other non EU States e.g. Singapore and the United States.
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No Supporting Documentation
If a vehicle is registered without any supporting documentation VRT will be charged at 36%. Likewise, if for whatever reason, the supporting documentation fails to satisfy Revenue of the level of CO2 emissions for the vehicle, the 36% charge will also apply.
Such a charge is open to appeal through the VRT appeals process. Appeals must be lodged within two months of the payment of VRT. It should be noted that you cannot appeal a VRT charge unless the charge has been paid.
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Hybrid, flexible fuel and electric vehicles
The current relief of 50% reduction of the VRT payable on Hybrid and Flexi Fuel vehicles is withdrawn from 30 June 2008.
A VRT remission up to a maximum of €2,500 will be available on such cars registered between 1 July 2008 and 31 December 2010.
This relief is limited, on a sliding scale, depending on the age of the vehicle. The scale is as follows:
Age of vehicle Maximum amount which may
be remitted or repaid
New vehicle, first registration €2,500
Not a new vehicle but less than 2 years €2,250
2 years or over but less than 3 years €2,000
3 years or over but less than 4 years €1,750
4 years or over but less than 5 years €1,500
5 years or over but less than 6 years €1,250
6 years or over but less than 7 years €1,000
7 years or over but less than 8 years €750
8 years or over but less than 9 years €500
9 years or over but less than 10 years €250
10 years or over Nil
With effect from 1 January 2008 to 31 December 2010, series production electric vehicles and electric motorcycles are exempt from VRT.
Vehicles covered by the remission/repayment
A hybrid electric vehicle is one that uses a combination of an internal combustion engine and an electric motor to derive its motive power. Hybrid electric engine technology benefits the environment by being more fuel-efficient than conventional internal combustion engines, emitting lower levels of harmful pollutants.
A flexible fuel vehicle (FFV) like any conventional petrol/diesel fuelled vehicle has a single fuel tank, fuel system and engine. However, the engine and fuel system are adapted to enable the vehicle to run on a combination of ethanol and petrol. To avail of the remission a vehicles must be a series production vehicle, i.e. not converted post-production; and must be capable of running on at least 85% ethanol and 15% petrol.
An electric vehicle is a vehicle that derives its motive power exclusively from an electric motor.
An electric motorcycle is a vehicle that derives its motive power exclusively from an electric motor.
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Minimum Amounts
The minimum amounts of VRT that will be charged have also changed. Under the old scheme there was a minimum €315.00 charge for all cars regardless of the value. In recognition of the larger number of rates and the wider range from 14% up to 36% a limit for each CO2 band was introduced. The limits are:
VRT Rate Minimum VRT
14% €280
16% €320
20% €400
24% €480
28% €560
32% €640
36% €720
For each rate the limit reflects a car with a value of approximately €2,000.
There is no change for Category B (crew cabs, etc.), Category C (commercial vehicles) or Category M (motorcycles - other than electric motorcycles).
So, in summary, Imports, after July 01st, will be liable for VRT based on CO2 emissions, only. In the absence of CO2 Certs, the VRT rate will be 36% of that imaginary figure the Revenue will pull out of thin air.
For Imports, please read the following, from www.revenue.ie
QUOTE Vehicle Registration Tax (VRT)
Change to the Tax Base
Current Tax Regime
Before 1 July 2008 VRT on passenger cars (category A vehicles) is charged as a percentage of the Open Market Selling Price (OMSP) of the car. The percentage is dependent on the engine size of the vehicle, with bigger cars paying a higher rate of VRT. All cars fit into one of three rates as follows:
Category Engine Size Rate
A1 Cars up to 1,400cc 22.5% of OMSP
A2 Cars 1,401 to 1,900cc 25% of OMSP
A3 Cars over 1,900cc 30% of OMSP
A minimum of €315, is payable regardless of the VRT rate charged on a vehicle.
New Tax Regime
From 1 July 2008, VRT payable on category A vehicles will no longer be based on the engine size but rather on the level of CO2 emissions from the car. Linking the VRT rates to the level CO2 emissions will mean that individuals purchasing cleaner, low emission cars will pay less VRT while those opting to purchase higher emitting vehicles will pay more.
A seven-band CO2 emission system will apply. VRT will now be charged as a percentage of the OMSP in accordance with the following table:
CO2 Emissions (CO2g/km) VRT Rates
0 - 120g 14% of OMSP
More than 120g/km up to and including140g/km 16% of OMSP
More than 140g/km up to and including 155g/km 20% of OMSP
More than 155g/km up to and including 170g/km 24% of OMSP
More than 170g/km up to and including 190g/km 28% of OMSP
More than 190g/km up to and including 225g/km 32% of OMSP
More than 225g/km 36% of OMSP
The new system of taxation will be applicable to new and imported category A vehicles.
As the new VRT rates differ from the current rates, the new regime is likely to impact on the VRT to be paid on all passenger cars registered after 1 July 2008. Thereafter, cars with lower CO2 emissions will have their VRT rates reduced. Reductions can be expected across the range of lower emitting vehicles. At the other end of the scale, larger, luxury and high performance models with higher CO2 emissions will be subjected to an increase in the VRT charged.
Implementation.
New Vehicles
Before a new model is put on sale in Europe, it must undergo a series of tests to ensure that it has achieved approved standards regarding safety, environmental impact, etc. This process is called Type Approval and each car achieving the approved standards is issued with a Certificate of Conformity. A distributor or main dealer must have a Certificate of Conformity for each vehicle that is sold. This certificate contains technical information about the vehicle, including information relating to the level of CO2 emissions. This level will determine the rate at which VRT will be charged. For customers who buy a car through a dealer or distributor, there will be no change in the registration procedures, as the car will be registered on their behalf by the dealer or distributor.
If a customer wishes to import and register a new car privately, then the level of CO2 emissions must be declared on the VRT3 form. The Certificate of Conformity showing the level of CO2 (located at point 46) must be presented with the VRT3 form at the time of registration.
Imported Second-Hand Vehicles
When an imported second-hand vehicle is presented for registration, the levels of CO2 emissions at the time of manufacture must be declared to Revenue on form VRT4 (the form used by an individual to register a second hand car).
If the vehicle originated within the EU, the declaration must be supported by documentary evidence confirming the level of CO2 emissions of the vehicle to the satisfaction of Revenue.
Revenue will accept a range of documentation for this purpose. Among the documents deemed satisfactory at present are:
* the Certificate of Conformity (if it is available),
* a printout from the Revenue ROS Enquiry System where the level of CO2 emissions is shown www.ros.ie Opens in a new window
* evidence included on a previous registration document e.g. the UK V5,
* the level of CO2 emissions stated on a previous National Car Test performed elsewhere within the EU provided the CO2 stated is that given at the time of manufacture,
* A print out for the vehicle from the DVLA Opens in a new window (Driver and Vehicle Licensing Agency) web site, www.vehiclelicence.gov.uk Opens in a new window
* A printout from the VCA Opens in a new window (Vehicle Certification Agency) web site
* A printout from the SEI Opens in a new window (Sustainable Energy Ireland) website
* A certificate from the manufacturer or main distributor stating the level of CO2 emissions.
If the vehicle originated in Japan, documentary evidence of the level of CO2 emissions will also be required.
The following documentation must be presented with the VRT4:
* Japanese Export Certificates or Japanese Certificates of Cancellation of Motor Vehicle Registration,
* a printout from the Japanese Ministry of Land, Infrastructure and Transport showing the level of CO2 emissions for the model on the certificate
Revenue are currently reviewing the additional documentation that may be required for vehicles imported from other non EU States e.g. Singapore and the United States.
» Back to Top
No Supporting Documentation
If a vehicle is registered without any supporting documentation VRT will be charged at 36%. Likewise, if for whatever reason, the supporting documentation fails to satisfy Revenue of the level of CO2 emissions for the vehicle, the 36% charge will also apply.
Such a charge is open to appeal through the VRT appeals process. Appeals must be lodged within two months of the payment of VRT. It should be noted that you cannot appeal a VRT charge unless the charge has been paid.
» Back to Top
Hybrid, flexible fuel and electric vehicles
The current relief of 50% reduction of the VRT payable on Hybrid and Flexi Fuel vehicles is withdrawn from 30 June 2008.
A VRT remission up to a maximum of €2,500 will be available on such cars registered between 1 July 2008 and 31 December 2010.
This relief is limited, on a sliding scale, depending on the age of the vehicle. The scale is as follows:
Age of vehicle Maximum amount which may
be remitted or repaid
New vehicle, first registration €2,500
Not a new vehicle but less than 2 years €2,250
2 years or over but less than 3 years €2,000
3 years or over but less than 4 years €1,750
4 years or over but less than 5 years €1,500
5 years or over but less than 6 years €1,250
6 years or over but less than 7 years €1,000
7 years or over but less than 8 years €750
8 years or over but less than 9 years €500
9 years or over but less than 10 years €250
10 years or over Nil
With effect from 1 January 2008 to 31 December 2010, series production electric vehicles and electric motorcycles are exempt from VRT.
Vehicles covered by the remission/repayment
A hybrid electric vehicle is one that uses a combination of an internal combustion engine and an electric motor to derive its motive power. Hybrid electric engine technology benefits the environment by being more fuel-efficient than conventional internal combustion engines, emitting lower levels of harmful pollutants.
A flexible fuel vehicle (FFV) like any conventional petrol/diesel fuelled vehicle has a single fuel tank, fuel system and engine. However, the engine and fuel system are adapted to enable the vehicle to run on a combination of ethanol and petrol. To avail of the remission a vehicles must be a series production vehicle, i.e. not converted post-production; and must be capable of running on at least 85% ethanol and 15% petrol.
An electric vehicle is a vehicle that derives its motive power exclusively from an electric motor.
An electric motorcycle is a vehicle that derives its motive power exclusively from an electric motor.
» Back to Top
Minimum Amounts
The minimum amounts of VRT that will be charged have also changed. Under the old scheme there was a minimum €315.00 charge for all cars regardless of the value. In recognition of the larger number of rates and the wider range from 14% up to 36% a limit for each CO2 band was introduced. The limits are:
VRT Rate Minimum VRT
14% €280
16% €320
20% €400
24% €480
28% €560
32% €640
36% €720
For each rate the limit reflects a car with a value of approximately €2,000.
There is no change for Category B (crew cabs, etc.), Category C (commercial vehicles) or Category M (motorcycles - other than electric motorcycles).
So, in summary, Imports, after July 01st, will be liable for VRT based on CO2 emissions, only. In the absence of CO2 Certs, the VRT rate will be 36% of that imaginary figure the Revenue will pull out of thin air.
