VRT - selling within 12 months of transfer of residence

ldxo15wus6fpgm

Hi all, quick query on VRT, hope someone knows this one.

I'm planning on moving back to the republic from NI, and bringing my uk reg car with me. I'm pretty sure I qualify for an exemption from VRT. I may have to sell the car soon after moving back, if I do, does VRT become payable by me after I sell the car, or can the change of ownership not go through until VRT is paid first?

If I have to pay before I get the change of ownership done I'll be stuck. I don't want to leave a buyer with the car still in my name for months while I get the dough together! I'll need the money from the car for some other stuff, so would be handy if I can hold off paying the vrt for a little while after the sale.

Simply put, will the DoT process a change of ownership without vrt paid up front, or will they refuse it until it's paid?

ironclaw

An exemption is an exemption. You are free to sell once the plate transfer is finalised with no fee's or penalty. I'm not aware of any 'minimum' time you need to hold the car before a transfer of ownership takes place. You certainly never have to pay the VRT on the car.

ldxo15wus6fpgm

ironclaw wrote: »

An exemption is an exemption. You are free to sell once the plate transfer is finalised with no fee's or penalty. I'm not aware of any 'minimum' time you need to hold the car before a transfer of ownership takes place. You certainly never have to pay the VRT on the car.

Are there restrictions on the sale or disposal of a Vehicle which has been granted Tax Relief?
Yes. You may not sell, dispose of, hire out or lend the vehicle during the 12 months following the date of registration. If you do, the VRT (Customs Duty and VAT if appropriate) must be paid in full.

http://www.revenue.ie/en/tax/vrt/leaflets/tax-relief-transfer-residence.html

slimjimmc

http://www.irishstatutebook.ie/1993/en/si/0059.html

(6) A vehicle in respect of which the relief aforesaid has been granted shall not be sold or otherwise disposed of, hired out, lent or given as security in the State during the period of 12 months following its registration by the Commissioners unless the vehicle registration tax to which the relief aforesaid relates is paid thereon, except with the prior permission of the Commissioners given on their being satisfied that there are circumstances justifying its non-payment.

I'd say judging by the wording above you have to pay the VRT first before selling unless you get prior approval from Revenue. Not certain though.

[Edit]
The application form for transfer of residence exemption explicitly states

l I undertake that the vehicle will not be sold or otherwise disposed of, hired out, lent or given as security in the State without the prior written permission of the Revenue Commissioners during the period of twelve months following its registration unless payment of the appropriate Vehicle Registration Tax has been made.

http://www.revenue.ie/en/tax/vrt/forms/vrt-tor.pdf

sunnysoutheast

ironclaw wrote: »

An exemption is an exemption. You are free to sell once the plate transfer is finalised with no fee's or penalty. I'm not aware of any 'minimum' time you need to hold the car before a transfer of ownership takes place. You certainly never have to pay the VRT on the car.

Edit: Just checked my reg cert and it says "Exempt from VRT. Disposal before <date> requires written consent from Revenue." I assume you have to pay the VRT before they would process the transfer?

Not sure under which circumstances the Revenue would waive the VRT, if written off or scrapped maybe or due to serious illness.

ironclaw

Apologises for misleading. I was assuming the car would be held for a reasonable amount of time before sale, not immediately.

Every day a school day!

td2008

Yes you would have to pay it.

Gumbo

It's actually stamped on the VLC so if it went in for a change of ownership within 12 months then VRT becomes liable.

ldxo15wus6fpgm

So you're saying I wouldn't have to pay it off until after the sale goes through?

corktina

You have undertaken not to sell it without written permission.So you can't sell it safely without first informing the Revenue who may well demand the VRT straight away..

cbb1982

I had the same problem couldn't change / sell car for 12 months was stamped on Cert said I had to change car to something more economical for work as do a long commute no joy pay the vrt circa 2700 or wait 12 months!

Gumbo

Marc Greasy Verb wrote: »

So you're saying I wouldn't have to pay it off until after the sale goes through?

You will have a very irate buyer at your front door after Shannon refuse to issue a VLC in his name.if the buyer is any way informed then he should be looking at the VLC and will cop in that a change of ownership won't go through.