Vrt on enhancements

reubenreuben

Hi,
It states this on the vrt calculator page:

Additional VRT may be payable if the vehicle is fitted with chargeable enhancements/accessories

So for instance, if you import a 2nd hand car that is a certain spec level version as stated on the logbook, but the car had extras applied (electric panoramic sunroof, electric seats, bigger wheels etc) when it was new.

Do you have to pay vrt on the extras applied or does that apply only when the car is brand new?

TomOnBoard

reubenreuben wrote: »

Hi,
It states this on the vrt calculator page:

Additional VRT may be payable if the vehicle is fitted with chargeable enhancements/accessories

So for instance, if you import a 2nd hand car that is a certain spec level version as stated on the logbook, but the car had extras applied (electric panoramic sunroof, electric seats, bigger wheels etc) when it was new.

Do you have to pay vrt on the extras applied or does that apply only when the car is brand new?

AFAIK there's a jumpy scale that reduces the value of extras to zero by the 4th or 5th year.

reubenreuben

TomOnBoard wrote: »

AFAIK there's a jumpy scale that reduces the value of extras to zero by the 4th or 5th year.

Thanks, is that on any vrt docs as cant seem to find info on it

reubenreuben

reubenreuben wrote: »

Thanks, is that on any vrt docs as cant seem to find info on it

Found it:

8.2.3 Establish the value of any optional extras
The next step in the valuation process is to establish if the particular vehicle has
optional extras and to attach a value to them. This is done by reference to trade
guides, supplier catalogues and other relevant source material. The extras are
depreciated (at an accelerated basis) over the first 5 years of the life of the vehicle.
Age of vehicle Reduction in OMSP of extras
Less than 3 months 0%
Less than 1 year 10%
Less than 2 years 25%
Less than 3 years 40%
Less than 4 years 55%
Over 4 years 100%
This depreciation in the value of extras is based on the age of the vehicle, which is
calculated using a specific “extras” formula and which is different from the formula
used to calculate the age of the vehicle.
First, the age of the vehicle in years is calculated using the formula:
Age in years = Year of registration in the State - Year of first registration.

Then the age in months is calculated using the formula:
Age in months = (age in years * 12) + (Month of registration in the State –
Month of first registration).
Using these two pieces of information, the Year for depreciation purposes is
calculated by using the formula:
Year = (age in months/12) + 1
Using this formula, a vehicle with a first date of registration of 20/01/2013 that was
presented for registration in the State on 10/10/2013 would be deemed to be one
year but less than two years old, i.e.:
Age in years = Year of registration in the State - Year of first registration
Age in years = 2013 – 2013 = 0
Age in months = (age in years * 12) + (Month of registration in the State –
Month of first registration)
Age in months = (0 * 12) + (10-01) = 9
Year = (age in months/12) + 1
Year = (9/12) + 1 = 1
Therefore a depreciation rate of 10% would be applied to the extras

TomOnBoard

reubenreuben wrote: »

Thanks, is that on any vrt docs as cant seem to find info on it

I got a photocopy page from the VRT folks last year but it's long gone. I know I had a vehicle that was 6 y.o. when I brought it in and they tried to charge me for extras and after an argument they agreed they were wrong and that no extras were chargeable if vehicle was over (cant remember exactly) either 4 or 5 years. The think is, the depreciation rate goes from 55% to 100% in the last year so the annual rate seems to be greater as the car gets older.

colm_mcm

The whole breakdown is online somewhere

reubenreuben

TomOnBoard wrote: »

I got a photocopy page from the VRT folks last year but it's long gone. I know I had a vehicle that was 6 y.o. when I brought it in and they tried to charge me for extras and after an argument they agreed they were wrong and that no extras were chargeable if vehicle was over (cant remember exactly) either 4 or 5 years. The think is, the depreciation rate goes from 55% to 100% in the last year so the annual rate seems to be greater as the car gets older.

Thanks, As an example, if importing a car today then by the calculator supplied by the revenue I worked out that there would be 100% depreciation (or FREE) for extras on a car that was originally registered as new on june 2015.
That's something to take into account as some manufacturers can add thousands of extras to a cars base price.

But, can the vrt calculator online be used as the actual amount you will pay if you end up paying nothing for the extras.

Or is that online calculator used only as a guide?

TomOnBoard

colm_mcm wrote: »

The whole breakdown is online somewhere

LoL, that's a very specific and helpful reply....;-)

colm_mcm

TomOnBoard wrote: »

LoL, that's a very specific and helpful reply....;-)

Enjoy!
https://www.revenue.ie/en/tax-professionals/tdm/vehicle-registration-tax/vrt-manual-section-08.pdf

ciarsd

I've been through this on more than one occasion. Essentially it's a sliding % scale as already mentioned and linked to above, reducing to 0% a day after the cars 4th anniversary of it's first date of registration.

I've found it to be hit and miss in it's implementation during the VRT process.