VRT question

aquascrotum

Hi,

I permanently transferred residence to RoI from NI and was able to import my car without paying VRT. However having got my reg logbook now, theres a stipulation that I must have written permission from the Revenue to sell/dispose of it within 12 months.

It wasn't my intention to import the car to make a quick buck, but it's a 2l diesel with E500+ road tax, and tbh I no longer need a car that big due to relocation and a change of jobs, so I was going to buy something a lot smaller.

So are the revenue going to come looking the VRT that wasn't paid previously? How strictly is this enforced? Any info from people with similar experience would be appreciated.

Cheers

Anan1

aquascrotum wrote: »

Hi,

I permanently transferred residence to RoI from NI and was able to import my car without paying VRT. However having got my reg logbook now, theres a stipulation that I must have written permission from the Revenue to sell/dispose of it within 12 months.

It wasn't my intention to import the car to make a quick buck, but it's a 2l diesel with E500+ road tax, and tbh I no longer need a car that big due to relocation and a change of jobs, so I was going to buy something a lot smaller.

So are the revenue going to come looking the VRT that wasn't paid previously? How strictly is this enforced? Any info from people with similar experience would be appreciated.

Cheers

Nobody can buy the car for 12 months as they won't be able to transfer ownership into their name. The only way around this is to pay the VRT.

robbie99

Does this 12 month rule stop you from selling it up north as a northern reg car?

Anan1

Nope, you just can't sell it here as an ROI registered car.

rebel.ranter

I know you can plead hardship if you had come into financial difficulties. In certain cases the revenue will allow you to avoid VRT on a sale within 12 month period.
If you are not in financial difficulty then you would probably be better off just driving it for the year. If the car was worth €20k it could cost you €5k-€7k. The €500 for the road tax for the year plus depreciation will not add up to €5k (I hope).
Of course it all depends on the value of the car.

aquascrotum

Car's an 04 Mondeo, worth probably 10k-ish.

If I were to go to the revenue in 6months wanting permission to sell, would the VRT payable be calculated at the value of the car at that time, or the value when the car was imported?

Anan1

The value at that time. To be honest, short of your leaving the country I can't see a scenario where it makes financial sense not to just keep the car for the 12 months.

-Chris-

In the current market you probably won't be able to sell it anyway. Sit on it for the year and then sell it for a nice little twist.

Otherwise pay the VRT now and sell it immediately, you'll probably still make a few quid.

aquascrotum

Cheers for the advice lads - looks like I'm a Mondeo man for another year so.....:(

redape99

Moved permanently to Ireland in August 07, re-registered my 10 year old bmw 316 with 130K miles on it, didn't have to pay any VRT.

The car is pretty tired now and unreliable and I have to have one for work so I recently agreed a trade-in value for a newer used car from a dealer but have just read (and remembered!) the 12 month exemption from selling without written consent.

There's 2 months left of the 12, any ideas or experience of what might happen? Obviously I'll phone the revenue tomorrow but will the dealer still take the car? Would I have to pay the whole 12 months vrt or 2 months?

Cheers.

L1011

VRT doesn't go by 'months' (that'd be road tax you're thinking of...). You won't be able to transfer the ownership to the dealer until August, although in the current market I doubt he'd be able to sell it on before then anyway.

Whether they'd charge you VRT on the OMSP now or August 07; and whether CO2 (if it has a cert, probably won't at that age) or CC I don't know - I'd presume it'd be on the current pricing.

redape99

Thanks myob... is it likely I'd get written consent to sell/trade in? I've driven it for 10 months of the 12 months period and the reasons for disposing of it are genuine!

The original vrt calc of 1300 would wipe out the trade-in savings.

redape99

ahhhh... it's academic now anyway as the head gasket has failed today!

Dirty_Diesel

aquascrotum wrote: »

Cheers for the advice lads - looks like I'm a Mondeo man for another year so.....:(

Another option would be to sell it to a trusted family member or friend and don't transfer ownership until the year is up. However, if they get caught by a gatso then the fine will go to you and they will have to own up for the offense or you will be forced to pay it