Vehicle Registration Tax
Vehicle Registration Tax or VRT is a tax that must be paid in Ireland upon registration of a motor vehicle.
The tax is paid to the Revenue in two ways:
• VRT is included in the retail price of a new motor vehicle purchased from a dealership
• The tax is paid by the owner of a motor vehicle imported from abroad upon applying for registration (subject to exemptions, below). The vehicle must be presented at a Revenue Vehicle Registration Office (VRO) no later than one day after arrival into Ireland.
Calculation
VRT is calculated as a percentage of the Open Market Selling Price (OMSP) of the vehicle. The OMSP is the "expected retail price" and includes all taxes previously paid in the state.
| Vehicle | Engine size | Cost of VRT |
|---|---|---|
| Cars | up to 1400 cc | 22.5% of OMSP, (subject to a min. tax of 315 euro) |
| Cars | 1401cc-1900cc | 25% of OMSP (subject to a min. tax of 315 euro) |
| Cars | over 1900cc | 30% of OMSP (subject to a min. tax of 315 euro) |
| Small vans and some SUVs | N/A | 13.3% of OMSP (subject to a min tax of 125 euro) |
| Motorcycles | N/A | 2 euro per 350cc and 1 euro per cc thereafter |
| Hybrid electric vehicles | as per cars | 50% of VRT payable may be rebated in respect of some hybrid vehicles |
| Other vehicles | N/A | A flat rate of 50 euro for tractors, large vans, lorries, etc. |
Exemptions
• Disabled Drivers
• Temporary or new residents who have previously registered their vehicle abroad for more than six months (and are additionally prevented from selling their vehicle for twelve months after moving to Ireland)
• Diplomats
Controversy
Some critics of VRT claim that it is effectively a continuation of the excise duty (which was applicable to vehicles in Ireland prior to 1992) and as such is illegal under European union law. Along with complaints about the very high rate of tax critics maintain the tax is ineffective in one of its stated aims the reduction of pollution from vehicles because while it may limit the number of vehicles on the road (by making new cars less affordable) it provides a disincentive for owners of older (more polluting) vehicles to replace their cars. Also as the tax is on vehicle ownership rather than usage (Irelands rates of taxation on petrol and Diesel are fairly low by European standards) there is little incentive for those who do manage to buy a car to ever consider using less polluting methods of transport. #
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