"Some" Rental Cars do NOT pay VRT

Berty

I found this out the other day and was shocked.

Rental cars do not pay VRT unless they are 6 months + 1 day old.

Why?

Why are rental companies allowed to drive here without paying VRT?

Mr Benevolent

Berty wrote: »

I found this out the other day and was shocked.

Rental cars do not pay VRT unless they are 6 months + 1 day old.

Why?

Why are rental companies allowed to drive here without paying VRT?

Good question. Probably because it allows rental companies to buy more cars and generate more income, thus more tax in the coffers etc etc.

MidlandsM

Berty wrote: »

Why are rental companies allowed to drive here without paying VRT?

its a tourism incentive;)

-Chris-

AFAIK it's to do with promoting tourism. It keeps hire cars cheaper for tourists and gives a newer stock of cars.

MidlandsM

-Chris- wrote: »

AFAIK it's to do with promoting tourism. It keeps hire cars cheaper for tourists and gives a newer stock of cars.

if only it worked in practice.

Berty

In that case, should airport taxis be exempt from VRT, Coachs operationg mainly in the tourism industry be exempt from VRT.

Im driving a rental right now car and Im not a tourist.

Our car hire is still incredibly expensive.

kasper

why are all rental car companies not doing it ?

Berty

kasper wrote: »

why are all rental car companies not doing it ?

I don't know who does or does not do it but it was Enterprise that pointed it out to me but if there was an exemption then surely all of them do it.

opinion guy

Berty wrote: »

I found this out the other day and was shocked.

Rental cars do not pay VRT unless they are 6 months + 1 day old.

Why?

Why are rental companies allowed to drive here without paying VRT?

Confab wrote: »

Good question. Probably because it allows rental companies to buy more cars and generate more income, thus more tax in the coffers etc etc.

Wait wait wait. How does this work ?

The rental company buys the car, doesn't pay VRT, the car makes them income, then at 6 months and 1 day they are supposed to pay the VRT ? Is this it ?? So what happens if they sell the car at 5 months and 29 days ? Do they have to pay VRT then ? Or is the VRT just forgotten about ?

Does this apply to say corporate leasing cars too or just to short term rentals ?

colm_mcm

I'm pretty sure this isn't how it works.

My underatanding is that most rentals aren't owned by thw rental companies, they're supplied by the dealers to the companies at the same price as the distributor charges the garage. The garage then buys the car back after an agreed period for a reduced price. The garage has the option to defer vrt for 6 months which means theyre not tying up loads of money until the cars are sold on.

opinion guy

colm_mcm wrote: »

I'm pretty sure this isn't how it works.

My underatanding is that most rentals aren't owned by thw rental companies, they're supplied by the dealers to the companies at the same price as the distributor charges the garage. The garage then buys the car back after an agreed period for a reduced price. The garage has the option to defer vrt for 6 months which means theyre not tying up loads of money until the cars are sold on.

But who owns the car for the 6 months - the leasing company or the garage ?

colm_mcm

They're sometimes registered in the garages name and sometimes in the rental conpabies name. That's why you'll see rental cars with all sorts of letters on the reg.

keithclancy

Berty wrote: »

In that case, should airport taxis be exempt from VRT, Coachs operationg mainly in the tourism industry be exempt from VRT.

Im driving a rental right now car and Im not a tourist.

Our car hire is still incredibly expensive.

Are you joking ?
I've rented cars in lots of European countries and Irelands about the cheapest, paid 70 euros for Friday to Monday last weekend I was home and that was including the Dublin Airport pickup fee.

Exact same thing in Nice (was travelling to Canne) was just over 180 euros i believe. Only place i've been to anywhere close in price is the UK and its still a little bit more expensive imo.

R.O.R

colm_mcm wrote: »

I'm pretty sure this isn't how it works.

My underatanding is that most rentals aren't owned by thw rental companies, they're supplied by the dealers to the companies at the same price as the distributor charges the garage. The garage then buys the car back after an agreed period for a reduced price. The garage has the option to defer vrt for 6 months which means theyre not tying up loads of money until the cars are sold on.

My understanding of it too. I'm not 100% sure, but I'm fairly certain that the VRT is deferred rather than just not being charged at all.

Enterprise are sneaky b***ards and don't stick to the full rules, but have somehow managed to get away with it. There are 2 types of rental cars - short term (the majority) and long term. Short term rentals have no VRT on them, but can only be rented for up to 28 days. Long term rentals have the VRT paid and can be rented for any period of time.

If a renter (say you Berty) is renting from someone for over 28 days the regulations state that the VRT must be paid on the vehicle, and this should apply even if the car you are driving is changed every 28 days (as Enterprise do). They don't adhere to this, so all the Enterprise cars are nice, shiny, relatively new cars.

Our No.1 rental supplier is actually part of our group. As all the rentals are charged to us we rent cars for a lot more than 28 days in total every year meaning that we can only use cars with VRT paid - regardless if the driver is in it for 1 day or 6 months. Currently, the best cars we have access to are 07 and have at least 85,000km on the clock :mad: Damn regulations.

opinion guy

R.O.R wrote: »

My understanding of it too. I'm not 100% sure, but I'm fairly certain that the VRT is deferred rather than just not being charged at all.

Enterprise are sneaky b***ards and don't stick to the full rules, but have somehow managed to get away with it. There are 2 types of rental cars - short term (the majority) and long term. Short term rentals have no VRT on them, but can only be rented for up to 28 days. Long term rentals have the VRT paid and can be rented for any period of time.

If a renter (say you Berty) is renting from someone for over 28 days the regulations state that the VRT must be paid on the vehicle, and this should apply even if the car you are driving is changed every 28 days (as Enterprise do). They don't adhere to this, so all the Enterprise cars are nice, shiny, relatively new cars.

Our No.1 rental supplier is actually part of our group. As all the rentals are charged to us we rent cars for a lot more than 28 days in total every year meaning that we can only use cars with VRT paid - regardless if the driver is in it for 1 day or 6 months. Currently, the best cars we have access to are 07 and have at least 85,000km on the clock :mad: Damn regulations.

Does if not infuriate you that your competitors are not paying VRT. Surely that gives them a big competitive advantage?

As to why this is the rule. I'd aimagine it was something to do with the howls of laughter from Hertz, Avis etc when someone explained VRT to them and basically they were given a work around to let them come here.

inforfun

Berty wrote: »

Our car hire is still incredibly expensive.

Not the experience i have with renting cars here.
I have rented cars for as little as €13 a day. Rented numerous times from friday afternoon till monday afternoon for €50.

Only country i can really compare prices with is Holland where first of all the basic price is a lot higher and then you get only 100 km per day for free. every km more you pay an extra 10 cents (could be more).

A bit surprised how cheap it can be to rent here seeing there are not many alternatives for tourist.

KTRIC

If you rent a car from one of the larger rental companies you can be certain its under six months old. Its part of their business plan.

R.O.R

opinion guy wrote: »

Does if not infuriate you that your competitors are not paying VRT. Surely that gives them a big competitive advantage?

As to why this is the rule. I'd aimagine it was something to do with the howls of laughter from Hertz, Avis etc when someone explained VRT to them and basically they were given a work around to let them come here.

It only affects a small % of rentals. The huge majority of cars rented would be short term so all are on a level playing field in that case. It's only corporate rentals where Enterprise have the advantage - and it does annoys me a bit, mainly because of the crappy cars.

Hertz and Avis are both run by franchises in Ireland rather than corporate, so they are used to the VRT issues.

keithclancy

inforfun wrote: »

Not the experience i have with renting cars here.
I have rented cars for as little as €13 a day. Rented numerous times from friday afternoon till monday afternoon for €50.

Only country i can really compare prices with is Holland where first of all the basic price is a lot higher and then you get only 100 km per day for free. every km more you pay an extra 10 cents (could be more).

A bit surprised how cheap it can be to rent here seeing there are not many alternatives for tourist.

One of the lads in Work rented a car from Sixt in Germany for a trip to france, it was significantly cheaper than renting from Holland.

So driving back to Holland he got stopped by the Douane (Customs) just over the border.

Long story short, they seized the car, told him he'd have to pay 30% of the book value + a fine because BPM (VRT) hadn't been paid for it.

Now he eventually sorted it out (as it was the company that rented it) but it took 2 weeks to get the damn thing back + loads of phone calls and letters from his employer, he was lucky that someone in HR spoke Dutch !!

Anyways, if your registered in the Netherlands your not allowed to borrow/own/rent/lease a car without BPM being paid on it in the Netherlands. You can register 1 License plate once a year with the Belastingdienst for a maximum of 2 weeks !

I could have got a nice 5 series in Germany for the money i paid for me Volvo v50 here in Holland

opinion guy

keithclancy wrote: »

Anyways, if your registered in the Netherlands

What registration are you talking about ? Residency ???

keithclancy

opinion guy wrote: »

What registration are you talking about ? Residency ???

In other European countries you register with the City Hall, this links to all sorts of stuff, City Taxes, Parking Permit, Bills, Health insurance, Road Tax.

http://www.movetonetherlands.com/immigration_gemeente.html

You can get away without doing it, but it makes opening a bank account and some other stuff nigh on impossible.

galwaytt

opinion guy wrote: »

What registration are you talking about ? Residency ???

Essentially, yes. Which is what should happen here, too. That way all non non-VRT LT/PL brigade would have to pay their fair share, too.

And stuff like the attached, couldn't happen:



Right Hand Drive, PL plated, old A4 ?.........yeah, right, pull the other one........:mad:

keithclancy

galwaytt wrote: »

Essentially, yes. Which is what should happen here, too. That way all non non-VRT LT/PL brigade would have to pay their fair share, too.

And stuff like the attached, couldn't happen:



Right Hand Drive, PL plated, old A4 ?.........yeah, right, pull the other one........:mad:

Actually I wouldn't be surprised if thats an Ex-UK reg car, I see LOADS of them on trailers being towed by PL reg Range Rovers.

Apparently theres a huge market for Cheap cars in the UK and the Poles don't really care if the steering wheel is on the wrong side, so them import them and sell them on for a profit.

Furp

I'd be interested in where the posters here are getting the best deals, I have been working in the UK and go home to Navan every weekend. A few weeks ago a booked a car from Budget. I paid €80 for rental from 23.30 Friday night until 06:00 Monday morning.

Interestingly when I got to the airport I was told they were giving me a freee upgrade, I got an 07 Navy Toyota Corolla with no hub caps and scratchs and dents all over it.

I don't think a lot of the rental companies here have a new as fleet as they used to as the garages no longer have had the sales, to give the cars to the rental companies and then buy them back for resale.

galwaytt

keithclancy wrote: »

Actually I wouldn't be surprised if thats an Ex-UK reg car, I see LOADS of them on trailers being towed by PL reg Range Rovers.

Apparently theres a huge market for Cheap cars in the UK and the Poles don't really care if the steering wheel is on the wrong side, so them import them and sell them on for a profit.

Well if that's the case, I surely stand, corrected. But it does seem.....odd....to say the least.

keithclancy

galwaytt wrote: »

Well if that's the case, I surely stand, corrected. But it does seem.....odd....to say the least.

Well the one thing to me that makes it plausible his the tax sticker on the drivers side of the windscreen. he's definitely had it in Poland at some point in time.

nmacc

keithclancy wrote: »

the Poles don't really care if the steering wheel is on the wrong side, so them import them and sell them on for a profit.

I can testify to that. Polish chap worked for me & decided to go back to Poland & start his own business. Before he left he bought a RHD 04 Iveco van for just over 4k & was very pleased with himself. I asked him about the wrong-handed wheel & he said it wasn't a problem; the same van in Poland would cost closer to 10k.

Another Polish chap working for me at the moment is keeping an Irish 98 Saxo on the road and intends to bring it back to Poland for his wife on the same basis.

opinion guy

So basically if we scrap VRt we could sell a **** load of cars to the Poles then!

zielarz

galwaytt wrote: »

Essentially, yes. Which is what should happen here, too. That way all non non-VRT LT/PL brigade would have to pay their fair share, too.

Right Hand Drive, PL plated, old A4 ?.........yeah, right, pull the other one........:mad:

You're angry at the wrong people. The government is overcharging you, not eastern european lads who are just better trained than you in avoiding absurds of socialistic system. I'm glad they do it because otherwise some people woudn't even know that there are countries with marginal VRT tax.
In Ireland VRT is 50€ for cars over 30 yers old. I don't see any reason why it couldn't be the same for every other car.. this must be the cost of all the paper work required for registration..

-Chris-

If you want to bitch generally about the unfairness, take it here:

http://www.boards.ie/vbulletin/showthread.php?p=66244947


This is for discussion of VRT on rental cars.