How Revenue calculate VRT

Voodoomelon

So this is the nuts and bolts of how Revenue calculate VRT on imported cars.

I found this curious of late as i'm looking at plenty of cars that aren't on the VRT calculator. They don't even need to be particularly exotic to not show up; the calculator seems to be (purposely?) glitchy of late and plenty of models that used to be listed no longer are. I've heard this from plenty of car-heads and i've seen it myself.

The worst thing about VRT is Revenue will not allow you to estimate the VRT on a non listed car before importing it. Below is the form that Revenue officials themselves fill out when working out the open market selling price (OMSP) of a car, and then the VRT which is a percentage of this depending on CO2 emissions.

But it ONLY serves as a form for you to print out and mess about with yourself (available from Revenues site), you can't fill it in and send it to them. As per the box at the top, it can only be submitted by them along with an NCTS booking, meaning the car has to be already in the country before an estimate can be performed.





It seems they reference two valuation sources, Glass' in the UK and the Car Sales Guide ROI. Two bodies who generate and store car valuations.

http://www.glassbusiness.co.uk/

From what I can make out, when Revenue receive a request for an estimate, they get the OMSP of four similar car examples in the UK. Then four OMSPs of four Irish models.

They then total the UK average price and the average Irish price and work out the average ratio of UK price to Irish price. That's the part that drives the final price up.

They then take the UK £ average and multiply it by the ratio, giving the new Irish OMSP in €. The VRT rate is then calculated off this.

So an example would be:

3 series BMW

Average UK price on file:
£25,000
£27,000
£25,500
£28,000
Avg: £26,375

Irish Price on file
€38,000
€39,000
€40,500
€41,500
Avg: €39,750

Ratios:
1.52
1.44
1.59
1.48
Avg: 1.51

UK Average £26,375 x 1.51 = €39,826.25 OMSP

Band C car, 141 – 155 grams per kilometer, 23% of OMSP.

VRT = €9160.04

I also believe that if the car is rare enough to have no values listed in either guide, active ads for similar cars can be used, as well as valuations from dealers. As per the form, existing valuations on the VRT calculator can also be used as an Irish price guide.

colm_mcm

This is for a model , say a Rover SVR, rather than an Audi A6 SE Quattro tech pack business edition black line?

dar_cool

Whores, they use this on all the jap imports, I exported a lancer evo 3 to the uk few years ago, they told me its hardly worth my while doing and got a refund of 500 euro, lad I know brought one in from japan few months later and thet charged him 3900 vrt. Scumbags

Marcusm

Mod edit, dont quote huge posts

I don't think this would be used for a 3 series BMW unless there was an ultra rare version for which there was insufficient data not he Irish secondhand market - maybe that would apply to an M3/M4.

What this is trying to capture is the situation of a model for which there are few if any Irish comparable, i.e. there are not a significant number of secondhand cars on sale at. particular post in time.

For example, an Aston Martin Rapide. The comparable cars might be a Porsche Panamera, a Maserati Quattroporte and a Marc S500 (for example).

It would be open to the proposed registrant to gather data from both the UK and Ireland for those models to show what rate of depreciation is applicable so that a depreciation estimate for the Rapide could be inferred.

Voodoomelon

Yes and no, there are quite a few variants of what you would deem to be "regular" enough cars, but have not been imported before, or somehow were not added to the database. I've heard this happens quite regularly, a price is generated as a one off for a certain car, but isn't then shown on the VRT calc. As to whether it is visible on the back end I don't know. But i'd imagine the forms in a lot of cases are only half filled in as there is few references as you say, especially for higher end stuff. I'm not so sure about comparing across brands though, do you reckon that happens? I'm sure there is a Glass entry for pretty much every car you can think of in the UK and they likely work off that alone.

Some cars that have definitely been imported before are no longer showing, again I reference BMWs as its what I know. No more M3 E46s or E93s, no E65 petrols, 740, 750, 760s, no G model 7s either in petrol.

I also think I got the calculation a bit arseways in regards the ratio, but the end result is the same. It makes sense to generate a total UK average and a total Irish average and generate the ratio from it, as opposed to an average of ratios.