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Buying a commercially taxed car

  • 04-09-2021 4:01pm
    Registered Users Posts: 178 ✭✭ unnamed


    I've read some other discussions on this and I'm still not clear, so apologies if this is clear to everyone else.

    I'm interested in buying a Jeep (2021) which is currently taxed commercially. I'll be using it for private use (but I do have a VAT number).

    The tax rate is over 2k, for private, and around 300 for commercial. The new owner claims that I can continue to use the commercial tax, which sounds too good to be true, (which means that it probably is).

    So, what do I need to know? Will it impact my insurance etc?

    Thank you.


  • Registered Users Posts: 18,050 ✭✭✭✭ Del2005

    It depends on what County you live in to be able to tax in commercial for private use, some are better at enforcing the law than others.

    Insurance will have to be commercial, with social and domestic use, but it's not cheap and you might have issues transferring a private policy. You also loose the ability to drive other cars if you have a commercial policy.

  • Moderators, Sports Moderators Posts: 43,417 Mod ✭✭✭✭ magicbastarder

    if you use the vehicle for personal use, you pay private rates. what the previous owner says makes no difference. it's the use of the vehicle which determines type of tax due

  • Registered Users Posts: 178 ✭✭ unnamed

    Thank you both for your help.

    I’ll check with the insurance company Monday morning and see what the story is.

  • Moderators, Sports Moderators Posts: 43,417 Mod ✭✭✭✭ magicbastarder

    They won't be able to help with your tax question!

  • Registered Users Posts: 2,973 ✭✭✭ User1998

    Probably the least enforced law out there. Everyone drives their commercial for private use. Just keep something to do with your business in the boot

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  • Registered Users Posts: 18,050 ✭✭✭✭ Del2005

    It's getting the commercial tax that can be tricky in some counties. Some are more diligent than others at enforcing the law, the Gardaí don't enforce the majority of our laws never mind incorrect use of a commercial vehicle.

    BTW having something in the boot related to work wouldn't matter. The declaration you sign says "I declare that vehicle registration number will be used only as a goods carrying vehicle in the course of my business/trade and will not be used at any time for social, domestic or pleasure purposes." So any personal items in the vehicle means that you are supposed to privately tax it, not that anyone cares.

  • Registered Users Posts: 2,973 ✭✭✭ User1998

    Yeah I agree that it’s difficult to get approved for commercial tax, but I don’t really think its a Garda matter. Its more a Revenue issue, hence why its never enforced

  • Registered Users Posts: 1,734 ✭✭✭ Buddy Bubs

    Bit tricky on brand new vehicle taxing for first time, doddle on renewal. Just renew it commercially, hardly ever enforced

  • Registered Users Posts: 18,050 ✭✭✭✭ Del2005

    When the current tax expires it'll be the first time for the OP and they will need to supply documents to get commercial tax, depending on their county it could be as simple as stick your PPSN number down on the form or hard needing to bring proof of commercial business requirements.

  • Registered Users Posts: 170 ✭✭ jeepcj

    Post the documents in for first tax renewl, don't do it in person. If you are not there, they can't ask you any questions.

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  • Registered Users Posts: 178 ✭✭ unnamed

    Thank you everyone for your help.

    One insurance company (without me prompting them) told me that the car was commercially taxed and that I would need to provide proof that I had changed it with 30 days of the policy starting.

    I got a quote from another insurance company and they didn’t care about how it was taxed.

  • Registered Users Posts: 18,050 ✭✭✭✭ Del2005

    The councils enforcing the law don't ask questions. You have to provide them with documentation to prove that you have a commercial use, don't provide the required documents and you won't get tax. In person, online or post makes no difference.

  • Registered Users Posts: 72,762 ✭✭✭✭ colm_mcm

    Is it a crewcab or a 2 seater?

  • Registered Users Posts: 18,512 ✭✭✭✭ ELM327

    Pretty easy to tax a commercial commercially these days. Depending on the county. Currently have a van taxed commercially and insured commercially (providing proof of commercial insurance and the RF111a when taxing for the first time in my name). I do use it a bit for my online side hussle but mostly used as a private runabout. I'm a PAYE worker and do not need the van for my main (WFH) job in risk data science.

    Back in my mis spent youth I had a 5.7V8 us pickup insured on classic insurance but taxed commercial. It depends on who you get on the day in the council. The AGS don't care.

  • Registered Users Posts: 178 ✭✭ unnamed

    It's a standard 5-seater Jeep.

    In the end, all of the insurance companies checked the tax to make sure it was tax privately. I'll filled a "Change of Particulars" form at the tax office and got it changed. It will cost me a few hundred more a year in a tax, but so be it.

  • Registered Users Posts: 72,762 ✭✭✭✭ colm_mcm

    Will you still have to pay commercial rates on tolls?

    Something not quite right here, it looks like it was registered as a crewcab by previous seller to dodge VRT, but now you’re using it as a car. I think it’s still classed as a commercial vehicle even though you have it taxed privately?

    did you have to pay the old style cc based tax?

    were you able to get normal insurance?

    prob still worth overpaying on the tax because I assume you saved a lot vs the price of a regular non commercial version

  • Registered Users Posts: 178 ✭✭ unnamed

    I was in the Motor Tax office yesterday, and I completed a change of Particulars form. According to the Tax office, it is now considered a private vehicle; I'll get a new logbook (or whatever it's called now).

    I got a new tax disk there and then (I had to surrender the current tax disk) and pay the tax from when I purchased it (8 Spet). It was already taxed until July next year, so they got the tax money twice.

    It's a 2021 car ... so I based using the current tax model. The commercial tax was 333/year, private tax is 1200. I suspect the importer, a garage, was trying to avoid paying the private car tax rate.

    The insurance company had given me 30 days cover to get the car changed to private tax; I'll need to contact them next to confirm. They said a scan of the tax disk would suffice.

  • Registered Users Posts: 12,606 ✭✭✭✭ R.O.R

    What does section J on the VLC say? That will tell you if it's a commercial vehicle or not.

    Taxation classification as private doesn't mean it's now a private vehicle, just that it's taxed privately now.

  • Registered Users Posts: 178 ✭✭ unnamed

  • Registered Users Posts: 9,724 ✭✭✭ Marcusm

    what’s the mileage? As a commercial it presumably qualifies for 13.3% VRT rather than the ?31% which would otherwise have applied if it had been treated as a cat A vehicle.

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