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Claiming VRT & VAT Calculations.

  • 19-05-2008 9:38pm
    #1
    vectra
    Registered Users Posts: 15,503 ✭✭✭✭


    I know I asked a similar question to this before but am not sure if I got the reply correct. :o

    OK
    Take a particular car :
    Skoda Octavia 2.0TDI VRs
    33,190 { 30% VRT & 21% VAT }
    OMSP 30,535.

    Now from what I recall someone told me on here that to calculate the resulting price once both claimed back would be done as follows :

    33,190 = 100% & 21% & 30% = 151%
    = 33,190 / 151 = 21.980 * 100% = 21,980

    Final price being €21,980
    Now,
    I found this on a site last night :
    This Site

    It gives an example of how to calculate :
    This example
    The VRT/VAT on a vehicle is based on the Open Market Selling Price; this would be the List Price less cash/fleet discount, not trade in allowance. The net cost of the vehicle is equal to the Open Market Selling Price, less the relevant rate of VRT, less the VAT.

    For example, a 1600cc vehicle:

    Open Market Selling Price € 17000
    Less VRT @ 25% € 4225

    Net of VRT € 12750
    Less VAT @ 21% € 2678
    Net Payable € 10072

    Based on that using the Octavia as an example :

    OMSP = €30,535
    Less VRT @ 30% = €21,374.50

    Net of VRT = €21,374.50
    Less VAT @ 21% =€16,885.85
    Net Payable = €16,885.85


    €30,535 - €16,885.85 = Reclaim of €13,649.15

    Now,
    I know a driver can claim max of €9,525
    & Passenger is max of €15,875

    Based on driver the car would according to the above calcs would be costing =
    €30,535 - €9,525 = €21,010

    Based on Passenger :

    €30,535 - €15,875 = €14,660 + 10% Spend on modification = €1,466 = €16126

    Can someone correct me as I think that sounds extremely low price :eek:

    Cheers


Comments

  • #2
    jayok
    Registered Users Posts: 1,907 ✭✭✭jayok


    The VAT and VRT calculations looks right, however the claim figures don't. In the final example you are claiming back more than the VAT and VRT combined. You can't do that.In the case of the Octavia the most you could claim back would to the basic cost of the car (€16,885.85).

    So the claim is for 30535-16885 = €13,650 (you don't get to max the amount claimed of €15,875)


  • #3
    vectra
    Registered Users Posts: 15,503 ✭✭✭✭vectra


    jayok wrote: »
    The VAT and VRT calculations looks right, however the claim figures don't. In the final example you are claiming back more than the VAT and VRT combined. You can't do that.In the case of the Octavia the most you could claim back would to the basic cost of the car (€16,885.85).

    So the claim is for 30535-16885 = €13,650 (you don't get to max the amount claimed of €15,875)

    AH,
    Right
    I was getting slightly confused there with the figures
    So.
    You saying it would end at
    €16,885.85 + 10% Modificition costs = €18574.43 ?
    I also read somewhere that some dealers give some Fleet discount as well to members of the IWA ?
    Would this discount come at the OMSP or after the deductions ?

    Still sounds like a cheap car


  • #4
    Esel
    Registered Users Posts: 22,002 ✭✭✭✭Esel


    vectra wrote: »

    Based on that using the Octavia as an example :

    OMSP = €30,535
    Less VRT @ 30% = €21,374.50

    Net of VRT = €21,374.50
    Less VAT @ 21% =€16,885.85
    Net Payable = €16,885.85
    I think you made an error when calculating the pre-VAT price?

    If €21,374.50 is the VAT inclusive price (after deducting 30% of the OMSP), this equates to 121% of the base price.

    Therefore the base price is €21,374.50 divided by 1.21, which is €17664.87.

    Not your ornery onager



  • #5
    vectra
    Registered Users Posts: 15,503 ✭✭✭✭vectra


    esel wrote: »
    I think you made an error when calculating the pre-VAT price?

    If €21,374.50 is the VAT inclusive price (after deducting 30% of the OMSP), this equates to 121% of the base price.

    Therefore the base price is €21,374.50 divided by 1.21, which is €17664.87.

    Hmm.
    This is what I am finding difficult to get my head around :o
    In that case I could have gotten the pre vat price wrong as well.

    Would the OMSP equate 100% + 30% vrt + 21% VAT = 151% ?
    All I did was deduct 30% from the OMSP.
    Maybe I need to do it again ?

    Thanks


  • #6
    alias no.9
    Registered Users Posts: 6,263 ✭✭✭alias no.9


    VAT and VRT are calculated differently.
    Starting at the pre tax price X,
    VAT is charged @ 21% of that price compounded
    i.e. X * 1.21 = 1.21 X
    VRT @ 30% is then calculated on the OMSP i.e. the pre VRT price = OMSP - 30% of the OMSP = 70% of the OMSP
    so OMSP = 1.21 X / 0.7

    Then in reverse X = 0.7 OMSP / 1.21

    So assuming you negotiate a deal to pay exactly the OMSP of €30,535, the pre tax price of that car would be €17,644.88

    Edit: You could calculate the VRT in the same way as VAT, this would involve using a rate of ~42.9% which would meet with much more public outrage than the notional published rate of 30% even though the amount of tax paid would not change. The government want this calculation to be confusing so the public don't realise how royally they are being screwed. The Minister for Finance responsible for implementing this dastardly scheme was none other than disgraced former Taoiseach, Bertie Ahern.


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