Over inflated open market selling prices (omsp..)

x00069776

Has anyone checked out the
http://www.vrt.ie/ and see how the vrt is calculated. It states that the open market selling price is calculated as a percentge of 90% of the market value of the vehicle as calculated by revenue. I am currently trying to vrt a merc (07) c200 cdi avantgarde, 2.2 auto( this is an old model (W203). The statistical quote is 43686824 (see
https://www.ros.ie/VRTEnquiryServlet/showCarCalculator) it states that the open market selling price is 40272, and results in 11272 in vrt. Doing the maths and adding 10% to 40272 gives me a market value of 44299 on this vehicle. as given by SIMI. THe current (07 )new models are selling on CARZONE for approx 27850 , by SIMI dealer. see (
https://www.ros.ie/VRTEnquiryServlet/showCarCalculator) . Can anything be done by the descrepencies in the two prices...(or is revenue ripping off joe public again).

bazz26

Unfortunately, welcome to Ireland.

The only way is to pay the VRT and then appeal it by providing proof such as dealer adverts, etc that the OMSP is overvalued. Don't have any experience of this personally but apparently the appeal success rate is pretty high, or so I am told.

miller77

I know where you are coming from x00069776, the OMSP is a pure joke!!
I was on to the VRT office in Carlow about over inflated OSMP's, the girl in the office agreed with me but told me that there was noting that you can do only appeal it as there is no number for the VRT office in RossLare that you complain too, how convenient!!!

Car-dealer

Im a car dealer and bring in cars all the time, so as you can imagine I lose my rag over and over when i log on and see over inflated market prices and high vrt.

You can email VRO@eircom.net - I believe and this might get a response from the VRT people, but good luck, they are a shower of lazy, arrogant, assholes if you ask me.

The Dublin office doesnt answer the phone, the Wexford office takes you to answer machine and asks you to leave a message, and if you ring around some other VRT offices you get messages saying, "sorry we are too busy to answer the phone".

Ye - they are too busy collecting money from me and you (via the biggest scam the Government have ever set up), but worse than that, they have the cheek to not be available when you want to quiery some OMSP!

mickey mac

Thanks car-dealer, I was beginning to think I was the only person that had problems with VRO employees, (definitely not VRO workers).
The service that they provide is abysmal, and why would they bother trying to improve it, they have got a captive audience and they're milking everyone of them.
When the details of a car that I imported were incorrect on the registration document, it took me 7 weeks, going between the road tax office, the VRT office and phoning Shannon to get it sorted out, each department saying that they hadn't made any mistakes, even though they ALL agreed the details were incorrect!

miller77

Thanks car-dealer, I'll be inundating VRO@eircom.net with E-mails.

I'm also trying to VRT a Merc C200 CDI with is way over inflated, the SIMI/OMSP recon that a 07 E220 and C220 has a OMSP worth less that a C200??? and there is no where in the VRT site that distinguishes between the New W204 C-Class and the Old W203 C-class model. I'm going contacting the papers and see will they run a story about how people are been ripped off by the VRT/SIMI cartel.

kuro_man

Inflated OMSP breaches EU law.

Not much you can do in the short-term, but you should compain to National Consumer Agency (consumerconnect.ie) and to the EU Commission. Here is a copy of the e-mail I sent to the EU Commision - SG-PLAINTES@ec.europa.eu. KEEP THE PRESSURE ON!

Dear Sir/Madam,

I would like to complain about the Vehicle Registration Tax (VRT) on used cars imported into Ireland. I believe the method of implementation breaches EU rules in the following ways:

1. It does not deduct any registration taxes paid in the (EU) country of origin;

2. The tax is a percentage of the Open Market Selling Price (OMSP) which is derived at by the taxation authorities in Ireland. It is almost always inflated therefore giving Irish motor dealers protection from competition from other EU states, especially the UK. It is only updated once or twice per year and the method of its calculation is secret;

3. Motor dealers in Ireland are consulted to help derive the OMSP of certain cars, which is a conflict of interest;

4. The final VRT amount is not guaranteed until you present the car for inspection. If you disagree with the valuation (and therefore the VRT) you can appeal but you must pay the VRT first. This makes price comparison impossible prior to purchase of the car and therefore give Irish dealers an unfair advantage;

5. The VRT is levied on the tax-inclusive value of the car, including VAT. This means it is a tax on a tax;

6. Because it is a percentage of the market value, VRT is levied on safety equipment (such a traction control) and technology to reduce emissions or improve fuel consumption. It is also levied on extras (such as leather seats) even though a luxury tax (VAT) was already paid. If leather seats were imported and fitted after registration, VRT on those seats would not be paid;

7. The complete list of OMSP’s is not freely available in a single document. You can enquire about a single car at a time but you cannot view the entire list for comparison.

I look forward to your reply.
Regards,...

miller77

Good stuff out of you Kuro-man, I'll be sending the EU Commision - SG-PLAINTES@ec.europa.eu a copy of your mail and try keep the pressure on them!!!

Miccko

gonna forward the mail myself..can't do any harm.

kuro_man

It might be a good idea to paraphrase it, so that they look independent and not part of some campaign

Car-dealer

HI,

listening to Joe Duffy yesterday, he used the term 'Banana Republic' in light of the recent payouts for Government employees!

I think this term should be used in relation to VRT!

OK: i rang the competition commission and heres the response: "yes vrt is anti-competitive, but there is nothing they can do, as the Irish Government is not a going-concern i.e. like a company, therefore there is no law to assist them in bringing a case forward against VRT"

EU: last year I wrote to the EU and they told me that a. the system of VRT was that it was not a tax, but a fee on car registrations, thus legal under the EUs laws b. it would move to an environmental levy based on Co2, thus could also be allowed under EU law.

So my friends, it seems the Banana Republic will continue.

Cardealer

ART6

Car-dealer wrote: »

HI,

listening to Joe Duffy yesterday, he used the term 'Banana Republic' in light of the recent payouts for Government employees!

I think this term should be used in relation to VRT!

OK: i rang the competition commission and heres the response: "yes vrt is anti-competitive, but there is nothing they can do, as the Irish Government is not a going-concern i.e. like a company, therefore there is no law to assist them in bringing a case forward against VRT"

EU: last year I wrote to the EU and they told me that a. the system of VRT was that it was not a tax, but a fee on car registrations, thus legal under the EUs laws b. it would move to an environmental levy based on Co2, thus could also be allowed under EU law.

So my friends, it seems the Banana Republic will continue.

Cardealer

Not a tax? Then why is it called Vehicle Registration Tax?:(
Mind you, the comment that the government is not a going concern is true. It is anything but!!

kuro_man

VRT on used cars is legal and it is levied in other EU states, including Finland and Greece. However, it cannot be used to protect local motor traders from competition for other EU states. Therefore, the VRT levied on imported used cars must be the same as the value of VRT incorporated into the price of a simialr used car that was originally registered in Ireland.

For example (not real figures),
New VW Golf for €20,910 inc. VRT €3910
Pretax price €17,000
VRT 23% (17,000 @ 23% = €3910)

If after 2 years the car was sold for €14,000, then the pro-rate VRT would be €2617.89 ie. (14000/123) * 100

If the govenment charge more that €2617.89 VRT on a similar imported car then it is giving an unfair advantage to local sellers and would be in breach of EU competition laws.

Obviously valuing cars is subjective - no two are exactly the same so you would expect variations. However, the current list of OMSP's is blatantly inaccurate and always inflated.