EU Court rules on VRT (lease and hire vehicles)

daRobot

Interesting development - applicable to Hire & Lease cars at this point.

From Rte

Ruling against Ireland over VRT on lease and hire vehicles

The Court found that the rules over Vehicle Registration Tax infringe the freedom to provide services across EU borders.

Europe's highest court has ruled against Ireland in a long-running dispute over whether operators importing cars from Northern Ireland should have to pay the full amount of Vehicle Registration Tax up front, even if the vehicle was only being leased for a limited period of time.

The European Court of Justice ruled that by imposing an obligation to pay the full amount of tax up front, Ireland was in breach of EU law.
<read more at link>

https://www.rte.ie/news/2017/0919/905877-vehicle-registration-tax/

Judgement can be found here:

http://curia.europa.eu/juris/fiche.jsf?id=C%3B552%3B15%3BRD%3B1%3BP%3B1%3BC2015%2F0552%2FP&pro=&lgrec=en&nat=or&oqp=&dates=&lg=&language=en&jur=C%2CT%2CF&cit=none%252CC%252CCJ%252CR%252C2008E%252C%252C%252C%252C%252C%252C%252C%252C%252C%252Ctrue%252Cfalse%252Cfalse&td=%3BALL&pcs=Oor&avg=&mat=or&parties=ireland&jge=&for=&cid=503374

Son0vagun

My OH literally just brought her car over from the UK(she's English). And has a appointment with the VRT people next Wednesday. We are looking at a bill for over 2k, and now we don't know what to do. Any advice?

dar_cool

Son0vagun wrote: »

My OH literally just brought her car over from the UK(she's English). And has a appointment with the VRT people next Wednesday. We are looking at a bill for over 2k, and now we don't know what to do. Any advice?

If she is moving here permenantely the vrt should be free

The_Chap

dar_cool wrote: »

If she is moving here permenantely the vrt should be free

That's assuming she is moving

Son0vagun

dar_cool wrote: »

If she is moving here permenantely the vrt should be free

No she's lived here for a few years.

NewApproach

Son0vagun wrote: »

My OH literally just brought her car over from the UK(she's English). And has a appointment with the VRT people next Wednesday. We are looking at a bill for over 2k, and now we don't know what to do. Any advice?

Did you read the article? It has nothing to do with individuals purchasing and importing cars.

biko

Title updated and some article content removed from OP as per copyright stuff

awec

This post has been deleted.

Son0vagun

Reading some reports that it implies to all motorist.

Son0vagun

awec wrote: »

She would have to have owned the car for 6 months prior to moving to qualify for the exemption (unless that rule has changed).

She's own the car for nearly a year, but she has been working here for 3 years.

Tazio

I'm feeling a bit dumb today (nothing new there ) but can someone explain this please?

Can I lease a new car from NI and drive it here in the south on IRL plates? if so does this ruling effect me in the form of a cheaper car? Or will the VRT just be factored into the price / lease agreement of the car anyway up front?

Does this ruling just effect the companies providing this service i.e no longer does the tax need to be paid up front but now in annual installments etc?

awec

This post has been deleted.

knipex

Son0vagun wrote: »

Reading some reports that it implies to all motorist.

Have you read the ruling or the report ??

Its not a huge change to anyone.

Essentially if a company, or an individual wants to lease a car from outside the country then the lease company will no longer have to pay the full VRT in advance.

The details hasn't been worked out yet but what will happen is that they will pay the VRT value for the period of the lease..

The only impact will be on cash-flow of lease companies which may result in a small reduction on cost for anyone leasing a car from a northern Ireland or UK company.. Long term the cost difference will work out at €500per car (which according to the story is the cost of applying for VRT refund). The amount of VRT paid to the state (amount paid initially less refund when car exported) will be the same..

There will be some saving on the finance cost of the previously refundable portion of VRT but, especially in today's low interest deals, it will be small.

Son0vagun

Thanks knipex!

CJhaughey

One important part is that the VRT export admin cost has been reduced from €500 to €100.

grogi

Tazio wrote: »

I'm feeling a bit dumb today (nothing new there ) but can someone explain this please?

Can I lease a new car from NI and drive it here in the south on IRL plates? if so does this ruling effect me in the form of a cheaper car? Or will the VRT just be factored into the price / lease agreement of the car anyway up front?

That's just the ruling, Ireland will be given time to update the local law.

Does this ruling just effect the companies providing this service i.e no longer does the tax need to be paid up front but now in annual installments etc?

What probably will happen is that a much simpler export procedure will be allowed, without the admin fee.

grogi

CJhaughey wrote: »

One important part is that the VRT export admin cost has been reduced from €500 to €100.

And that still is illegal. €500, €100 or €1 - there must be no fee.

Marcusm

Son0vagun wrote: »

No she's lived here for a few years.

Did she own and use it in the UK before? Has she only now made her Irish residence permanent or habitual? Sh might not be too late to claim an exemption.

Robbo

grogi wrote: »

And that still is illegal. €500, €100 or €1 - there must be no fee.

Nope. There's a long history of small, proportionate and non-discriminatory charges like this (for paperwork, inspections, statistical surveys etc) being found to be well within EU Law.

Care to cite any cases on this?

bladespin

grogi wrote: »

And that still is illegal. €500, €100 or €1 - there must be no fee.

Not true, they are within their rights to charge for administration, eg. birth cert etc.

grogi

bladespin wrote: »

Not true, they are within their rights to charge for administration, eg. birth cert etc.

Birth cert for a car!?

State has already took VRT, so are not really in a position to demand more for returning money.

bladespin

grogi wrote: »

Birth cert for a car!?

State has already took VRT, so are not really in a position to demand more for returning money.

For any official documentation you have to pay an administration fee, I just used a birth cert as an example (possibly the most basic privilege of any citizen but it still costs money).

VRT is a separate charge from Administration.

grogi

bladespin wrote: »

For any official documentation you have to pay an administration fee, I just used a birth cert as an example (possibly the most basic privilege of any citizen but it still costs money).

VRT is a separate charge from Administration.

There is a slight difference here though. The revenue has already cashed the VRT based on initial market value of the vehicle. Now they are to return the fraction of it. It is reasonable for the state to finance all administration work from the portion of that tax it is keeping.

bladespin

grogi wrote:

There is a slight difference here though. The revenue has already cashed the VRT based on initial market value of the vehicle. Now they are to return the fraction of it. It is reasonable for the state to finance all administration work from the portion of that tax it is keeping.

That's up to them.

MichaelW1

Is there any more news on this law changing?
Would it be possible to lease a car from the North when this comes into effect?
Cars can be leased in the UK for a fraction of the price!