Motor Tax

LukeH

Hi All

I'm considering purchasing a Jeep. My insurance is fine with Commercial or Private so that's ok.
First off, I know you need to have a company VAT number to tax a commercial although I heard there's ways around this, can anyone advise me on this?
Second thing is that I'll be out Ireland for two months at a time and then in Ireand for one. So I'll actually only be home for four months of the year. If I was to go private, as in seven seater is there a possible way to avoid the €1400 charge?

Thanks

Viper_JB

LukeH wrote: »

as in seven seater is there a possible way to avoid the €1400 charge?

Either picket the government to reduce tax for larger engine cars or buy a car with a smaller engine, would be your only legal options - anything else and you risk the car being taken off of you.

jimmi

You have to fill out a "goods only" declaration showing your VAT number and the nature of your business, have this stamped at your local Garda station and hand in with your tax renewal form. You'll also need a current DOE test for commercial tax.

LukeH

Ok thanks.
What about Tax refunds? or Stamping it off the road, as it legitimately will be.

corktina

You don't need a VAT number, that's the point of doing the declaration. All you do is declare that it will only be used for commercial purposes.

For declaring it off the road, you have to declare it off the road in advance. When you come home and want to tax it, I can't see any way around having to tax it for three months from the first of the month in which you are going to tax it. You would then have to declare it back off the road again when/after leaving the country before that tax expired.

Motor Tax refunds can occur but only in particular circumstances which are very limited and even then only for more than 3 months tax

CiniO

LukeH wrote: »

Hi All

I'm considering purchasing a Jeep. My insurance is fine with Commercial or Private so that's ok.
First off, I know you need to have a company VAT number to tax a commercial although I heard there's ways around this, can anyone advise me on this?
Second thing is that I'll be out Ireland for two months at a time and then in Ireand for one. So I'll actually only be home for four months of the year. If I was to go private, as in seven seater is there a possible way to avoid the €1400 charge?

Thanks

Are you going to be using the vehicle only when in Ireland? Or are you taking vehicle with you when you are away?

As you are spending only 4 months a year in Ireland, are you still resident here?

LukeH

Yes, only using it in Ireland. It wont be coming with me.
I have the residential documents for the country I'll be in soon, so I'm not to sure if that will affect anything.

CiniO

LukeH wrote: »

Yes, only using it in Ireland. It wont be coming with me.
I have the residential documents for the country I'll be in soon, so I'm not to sure if that will affect anything.

See technically, you won't be able to get insurance with any Irish insurer if you are not resident in Ireland.
Most likely you won't be able to insure your Irish registered car with insurer from country you are moving to.
You could have your car registered and insured in country you will be resident, but you can't keep it in Ireland for more than 12 months.
Catch 22 pretty much.

LukeH

Well all my co-workers have cars, houses ect at home so it must not affect us. Put back on topic, there isn't away to fairly pay the tax on a private Jeep? Any how do I go about "Declaring" it as commercial use?

CiniO

LukeH wrote: »

Well all my co-workers have cars, houses ect at home so it must not affect us.

Depends on your residency status.
If you are not resident in Ireland, I don't think there will be any insurer happy to insure you. But maybe I'm wrong, and insurer like this exists.
Or maybe you will still be resident in Ireland (f.e. because you are on set time contract, and regularly return home).
But if I were you, I would take closer look at it.

Put back on topic, there isn't away to fairly pay the tax on a private Jeep? Any how do I go about "Declaring" it as commercial use?

First of all, vehicle must be a "goods vehicle". So it's either a van or passenger vehicle converted for being "goods vehicle" (f.e. rear seats taken off, no windows in the rear, etc...

Once vehicle is a goods vehicle, to tax it as goods vehicle (commercially) you need to be able to prove you are using it for business purposes.
F.e. having a company or operating as self employed usually is good enough. Otherwise letter from your employer that you need vehicle for work to transport goods.
Might be hard if you don't have any of the above.

corktina

You don't need to prove it, you just fill out the declaration. (The penalties for false declaration are quite severe iirc.)