Registered User
#1

Hi...

Just looking for some info around the disability discounts available if buying a new car for the purpose of transporting a disabled passenger (family member) around - whats the deal with VRT & VAT ? Is the full VRT discounted from the asking price of the car before purchasing and then the VAT (at 21% of the full asking price) claimed back once the car is bought ?

Example :
Cost of car = 20,000Euro
VRT at 20% = 4,000Euro

Price to pay = 16,000Euro

VAT at 21% of original cost of car = 4,200Euro which is claimed back once the car is purchased.

Therefore the car in reality costs 11,800Euro.

Cheers.....

Registered User
#2

There is no "discount". If anything the car dealer will try to charge you more as you are getting the rebate.

VRT rates vary, so I'm not sure if 20% is the appropriate rate.

Also you aren't calculating the numbers quite correctly

€20,000 gross less VAT =
€16,529 less VRT =
€13,774 nett +20% =
€16,529 + 21% =
€20,000 gross

Also there is a slightly complicated calculation for VRT, so if the rate is 20%, the adjustment isn't 20%.

Note that a certain minimum amount (€€€ of customisation is needed for the vehicle to qualify.

The Irish Wheelchair Association and the Disabled Driver Association are likely to have better information. Revenue may also have information.

www.iwa.ie
www.ddai.ie
www.revenue.ie

Registered User
#3

Understand what you're saying with the car dealers...fortunately I got him to give me his best cash price sale before disclosing the reasoning behind buying the car !!! The VRT rate on the model being bought is 20%. You're using a VRT rate of 16.7% approx in the figures below - would this be typical of the adjustment for the VRT Rate ?

So based on the figures below, it would work out something in the region of this (with the cost of customisation on top of that of course).

20,000 Gross less VAT (21% for goods) =
15,800 less VRT (20% for convienence) =
12640 ~ NET + VRT =
15,800 + VAT =
20,000 Gross.

Cheers for the websites...

Registered User
#4

If a retailer buys something for €100 and adds VAT he sells it for €121.

To get from gross price €121 to nett price €100, you divide by 1.21 (1+21%), you don't multiply by .79 (1-21%). Its the difference between mark-up and margin.

Now, having said that, VRT has a messed up calculation based on expected sale price (OMSP - open market sale price), not the price the dealer pays the manufacturer / distributor.

Registered User
#5

Hi,What is the situation for second hand cars in relation to climing back money?

Registered User
#6

Victor said:
There is no "discount". If anything the car dealer will try to charge you more as you are getting the rebate.

VRT rates vary, so I'm not sure if 20% is the appropriate rate.

Also you aren't calculating the numbers quite correctly

€20,000 gross less VAT =
€16,529 less VRT =
€13,774 nett +20% =
€16,529 + 21% =
€20,000 gross

Also there is a slightly complicated calculation for VRT, so if the rate is 20%, the adjustment isn't 20%.

Note that a certain minimum amount (€€€ of customisation is needed for the vehicle to qualify.

The Irish Wheelchair Association and the Disabled Driver Association are likely to have better information. Revenue may also have information.

www.iwa.ie
www.ddai.ie
www.revenue.ie

If you are a member of the IWA, you are entitled to a fleet discount on some models. Contact the IWA information department on 01-8186400, or check out www.iwa.ie, for more info. There are a few links to the motoring school of the IWA and there is a list of car makes that offer discounts.