Vrt and EU tax laws

Ak_87

I have been trying to find the specific eu law for taxation. As far as my understanding goes Ireland cannot apply a higher tax rate to on eu imports than it would if it was purchased in Ireland?

I’m looking at bringing in a car from the uk and comparing to the vrt applied to new cars here. I have worked out that if I brought in a car nearly 2 years old from the uk the vrt would be about 3k more than the vrt applied to the same car if bought new here.

Is this not a larger tax on imports than on domestic products?

I’m just really curious of this. And hoping somebody can clear this up for me.

colm_mcm

Your calculations are more than likely completely wrong.

Recalculate and come back. The VRT is based on the OMSP which is based on the new OMSP with a depreciation/mileage algorithm applied.

Phileas Frog

It's also not an import tax, it's a registration tax hence the name. You'll find it's perfectly legal.

Also, a new car is an import too.

GM228

Ak_87 wrote: »

I have been trying to find the specific eu law for taxation. As far as my understanding goes Ireland cannot apply a higher tax rate to on eu imports than it would if it was purchased in Ireland?

I’m looking at bringing in a car from the uk and comparing to the vrt applied to new cars here. I have worked out that if I brought in a car nearly 2 years old from the uk the vrt would be about 3k more than the vrt applied to the same car if bought new here.

Is this not a larger tax on imports than on domestic products?

I’m just really curious of this. And hoping somebody can clear this up for me.

As the previous poster stated this is a tax on the registration of the vehicle, not a tax on the importation of the vehicle.

The relevant provision at EU level is Article 110 of the Treaty on the Functioning of the European Union.

The European Court of Justice has held that such taxation is a matter for member states and outside the jurisdiction of EU law (once it complies with other areas of EU law).

In the 2017 European Commission vs Ireland Case C552-15 case, the ECJ held that Ireland was in breach of EU law with regards to VRT when applied to leased/hired vehicles entering the state temporarily.

colm_mcm

Note that loads of European countries have similar registration taxes.

GM228

colm_mcm wrote: »

Note that loads of European countries have similar registration taxes.

+1, there are 15 EU states which have VRT type fees.

Denmark, Spain, Greece, Italy, Ireland, Netherlands, Austria, Portugal, Finland, Hungary, Latvia, Malta, Slovenia, Cyprus and Poland.

Ak_87

Thanks for the replies.

I am aware that is not illegal and import tax, poor choice of words. And I am not questioning the legality of it.

I'm going by what's on sale in Ireland for my calculations and similar cars on the vrt calculator.

The car I'm looking at is 120k new in Ireland with a 27% vet rate. See calculations below.

So 120k =127% of car price after vat. So 120/127 * 27 =25,511 is the vrt added?

The car 1.5 years old is for sale at 96k which would now be the omsrp. 96000 * 0.27 is 25,920.

So not quite 3k but still a higher vrt applied to registering an older car in Ireland than is applied to a new car in Ireland.

Am I missing something?

colm_mcm

The OMSP and the price of a particular car aren’t supposed to be the same.

Ie if you’re looking at 2 identical cars, one priced at £70k and the other at £50k, the VRT will be the same regardless.

Similarly if you see a car on sale in Ireland do €95000, it doesn’t follow that the OMSP will be €95000 for an identical car.


VRT is a percentage of the OMSP for that model. VAT doesn’t come into it.

Del2005

Ak_87 wrote: »

Thanks for the replies.

I am aware that is not illegal and import tax, poor choice of words. And I am not questioning the legality of it.

I'm going by what's on sale in Ireland for my calculations and similar cars on the vrt calculator.

The car I'm looking at is 120k new in Ireland with a 27% vet rate. See calculations below.

So 120k =127% of car price after vat. So 120/127 * 27 =25,511 is the vrt added?

The car 1.5 years old is for sale at 96k which would now be the omsrp. 96000 * 0.27 is 25,920.

So not quite 3k but still a higher vrt applied to registering an older car in Ireland than is applied to a new car in Ireland.

Am I missing something?

Have you used the VRT calculator for the car you are looking at?

mickdw

I believe the vrt is calculated against the vrt and vat inclusive price (omsp).
So while you might expect 100 percent to be the pre vrt price and 127 percent being the after vrt price, giving you the 25511 figure for €120000 car, they don't do that.
They like to squeeze some extra out of us.
So they take 100 percent to be the vrt inclusive price and calculate 27 percent of that meaning €32,400 would be the vrt with an omsp of 120000.
The 1.5 year old car at 96000 costing 25920, a vrt saving of 6.5k

Ak_87

mickdw wrote: »

I believe the vrt is calculated against the vrt and vat inclusive price (omsp).
So while you might expect 100 percent to be the pre vrt price and 127 percent being the after vrt price, giving you the 25511 figure for €120000 car, they don't do that.
They like to squeeze some extra out of us.
So they take 100 percent to be the vrt inclusive price and calculate 27 percent of that meaning €32,400 would be the vrt with an omsp of 120000.
The 1.5 year old car at 96000 costing 25920, a vrt saving of 6.5k

They only apply vrt on vrt when bringing a car yourself not on new cars, source friend who works in dealership. Also I have it on invoice of last car I bought, which holds up my maths above.

colm_mcm wrote: »

The OMSP and the price of a particular car aren’t supposed to be the same.

Ie if you’re looking at 2 identical cars, one priced at £70k and the other at £50k, the VRT will be the same regardless.

Similarly if you see a car on sale in Ireland do €95000, it doesn’t follow that the OMSP will be €95000 for an identical car.


VRT is a percentage of the OMSP for that model. VAT doesn’t come into it.

I agree however the car I'm looking at is not on vrt calculator, so I have compared it something similar. Car I'm looking at is BMW 840d, so I have compared it to 740d which has depreciating value of 20% for same age so I apply that to the 840d new and I get which is 96k.

Which is also what they are selling here used.
Would you expect the omsrp to be lower?

If this was the omsrp by revenue it would kewn they apply a larger vrt to bringing a car in?

mickdw

Ak_87 wrote: »

mickdw wrote: »

I believe the vrt is calculated against the vrt and vat inclusive price (omsp).
So while you might expect 100 percent to be the pre vrt price and 127 percent being the after vrt price, giving you the 25511 figure for €120000 car, they don't do that.
They like to squeeze some extra out of us.
So they take 100 percent to be the vrt inclusive price and calculate 27 percent of that meaning €32,400 would be the vrt with an omsp of 120000.
The 1.5 year old car at 96000 costing 25920, a vrt saving of 6.5k

They only apply vrt on vrt when bringing a car yourself not on new cars, source friend who works in dealership. Also I have it on invoice of last car I bought, which holds up my maths above.

colm_mcm wrote: »

The OMSP and the price of a particular car aren’t supposed to be the same.

Ie if you’re looking at 2 identical cars, one priced at £70k and the other at £50k, the VRT will be the same regardless.

Similarly if you see a car on sale in Ireland do €95000, it doesn’t follow that the OMSP will be €95000 for an identical car.


VRT is a percentage of the OMSP for that model. VAT doesn’t come into it.

I agree however the car I'm looking at is not on vrt calculator, so I have compared it something similar. Car I'm looking at is BMW 840d, so I have compared it to 740d which has depreciating value of 20% for same age so I apply that to the 840d new and I get which is 96k.

Which is also what they are selling here used.
Would you expect the omsrp to be lower?

If this was the omsrp by revenue it would kewn they apply a larger vrt to bringing a car in?

I don't agree that they calculate differently when buying new v used.
It's calculated against omsp in all cases. Now the omsp does tend to be under the retail price when new while they can be cheeky on the omsp of used cars.