VAT and VRT help

cozzie55

Hey
Looking for some help as I am trying to work out the VAT and VRT on a car. I am thinking of getting a new toyota avensis in the new year. The sale price is €28k but I get disabled drivers allowance of up too €9525 and want to work out what it will cost to change.

Looking on Revenue website the OMSP is €21,092 and VRT is charged at 20%. As far as i gather OMSP includes VRT so that would mean that VAT is charged on the OMSP-VRT
I get a value of €4218 for VRT which means the cost of the car without any tax is €16,874. VAT at 21% of this figure is €3543.
Therefore total VRT and VAT is €7761. Does this figure make sense to anyone?

colm_mcm

Assuming you're looking 1.6 strata

Ask dealer for actual vrt figure on a model they've registered.


If you're doing a deal on a trade in be prepared for the garage writing down the price of the trade in and new car equally so they can actually sell the trade in.


Are you buying straight?
Have you negotiated the discount?


Vat is charged on invoice price, which is retail minus discount agreed minus vrt

not on omsp

Without actual itemised quote from garages, you're at nothing, the vat you pay goes on the invoice price to you, so this actual figure needs to be given rather than a single cost to change figure

mickdw

Id say omsp would be nearer 25,000. That would leave 5k vrt approx.

Vat @ 23% would mean 23,000 is 123% of pretax price giving a pre tax price of 18,700.

This would mean you would be maxing out the available discount because the taxes are 9,300.

Very rough figures and you need to get actual omsp from the dealer. 23% will be the vat rate in new year.

cozzie55

mickdw wrote: »

Id say omsp would be nearer 25,000. That would leave 5k vrt approx.

Vat @ 23% would mean 23,000 is 123% of pretax price giving a pre tax price of 18,700.

This would mean you would be maxing out the available discount because the taxes are 9,300.

Very rough figures and you need to get actual omsp from the dealer. 23% will be the vat rate in new year.

Would the Revenue not use their OMSP to calculate the VRT and VAT?

I have been quoted approximately 12k to change my car, but the dealer has said that I won't be able to claim the entire disabled drivers allowance due to lower emissions on the car. So if I take your figures it should cost approx 10k to change

Its a 2.0l strata that i'm looking at.

I want to check this 12k figure is roughly right myself just so I can see how much the dealer is giving me for my trade in and see how much of a deal I am actually getting.

colm_mcm

The diesel vrt is less than 20% its band b emissions.

Vat is paid on the invoice from the garage to you. It's claimed on the invoice amount.

What usually happens with trade ins is the garage buy in the car at the lower trade price, they usually discount the new car by the difference between the trade buy-in price and the retail trade in price. This has implications on the vat amount you claim

E.g a €2000 discount off both cars equates to roughly €550 less vat back for you. For this reason you really need to get concrete figures from the garage on invoice prices, buy in amounts and cost of the conversion work (which you can also claim on)

vectra

Sell your own car privately if possible.
Do a cash deal with the garage.
buy a Tax band C car to try get the maximum back

colm_mcm

Fair point vectra, any band c cars you'd recommend? Would've thought all the traditional class leaders would be b or a. I wouldn't buy a petrol Avensis just to get a few hundred tax back as trade in will be much less next time.


Please no dpf discussions or lamenting irelands diesel fetish

vectra

colm_mcm wrote: »

Fair point vectra, any band c cars you'd recommend? Would've thought all the traditional class leaders would be b or a. I wouldn't buy a petrol Avensis just to get a few hundred tax back as trade in will be much less next time.


Please no dpf discussions or lamenting irelands diesel fetish

err...
I surveyed this for a long time before I purchased.
Dare I say what I bought and would suggest
S....
O......
v..

michellie

VAT is calculated from the invoice only, nothin to do with the OMSP.

colm_mcm

That point was twice already



in November.

muhammadkamran

IDK about OSMP but I found this website that I think was worth mentioning, it has a calculator that stores data without my consent but also kind of keeps it on my computer https://vatcalc.irish/vrt-calculator-ireland/

User1998

https://www.boards.ie/discussion/comment/122779277#Comment_122779277

I’m pretty sure OP got sorted by now, 13 years later.