VRT relief for EV's imported from Northern Ireland

Gulliver

I have a question for anyone who imported used from NI.

Was the V5C enough to prove it was only ever registered and used in NI? The VRT/Ncts site says you need tax and insurance details too, but as I'm thinking of buying from a dealer they wouldn't have this.

The car I'm looking at (ID3) hasn't had an MOT yet, so no records there.

daarmcd

I have spent the last 4 weeks looking at mostly 6 month old cars reg'd new from NI but the OMSP quoted by the revenue commissioners bears no relation to the real market value. Can you post a link to this discussion if you are doing a VRT enquiry on revenue for an NI qualifying EV and the OMSP figure is above €40k but the car is selling for less here.

The highest difference was on a 2021 EQC 400, £35k stg in NI, valued by revenue with an OMSP of €66,000 Euro.

The most recent is a 6 month old Iconic Megane E Tech with an OMSP of €48,000 meaning VRT has to be paid but the car new in Kearys in Tallaght is €39,000.

Another example is a new Tesla Model 3 the purchase price is €40,483.78 but VRT somehow is €1,349

• Vehicle Subtotal €42,990
• SEAI Grant -€3,500
• Destination & doc fee €980
• Tyre recycling fee €13.78
• Vehicle Registration Tax €1,349
• Purchase Price €41,832

Includes VAT of approx. €8,224

Has anybody imported a car from the north and appealed against the OMSP valuation when getting your car registered for VRT? If so what did you need.

The OMSP is the "expected retail price" and includes the sum of the vehicle = pre-tax price x VRT and x VAT. So you are taxed on a tax.

Electric vehicles with a new price of more than €50,000 don’t get any VRT rebate, while those priced between €40,000 and €50,000 get a tapering rebate — the €5,000 rebate is reduced by a percentage of the car’s price above the €40,000 mark.

Has anyone found how the tapering rebate between €40,000 and €50,000 is calculated?

daarmcd

So I am still looking for a 2nd EV and the new model 3 is high on my list, why is there VRT when the purchase price is €40,483.78 but VRT somehow is €1,349, I have emailed tesla ireland but still have no answer.

• Vehicle Subtotal €42,990
• SEAI Grant -€3,500
• Destination & doc fee €980
• Tyre recycling fee €13.78
• Vehicle Registration Tax €1,349
• Purchase Price €41,832

Includes VAT of approx. €8,224

ELM327

VRT on EVs is 7% and cheap ones get a discount or zero VRT. I think the Tesla is over the threshold.

Mickeroo

the 42,990 is the purchase price after the grant and including all the fees/vrt I thought.

daarmcd

https://www.boards.ie/discussion/comment/121771719#Comment_121771719

no, the 3500 comes off that

liamog

https://www.boards.ie/discussion/comment/121771791#Comment_121771791

The short answer is that Tesla as the sole importer of new Tesla vehicles to Ireland have informed Revenue that the OMSP of the car is €46,226. This is subject to 7% VRT €3,236 but eligible for VRT relief on the sliding scale of €1,886 (do 5000 * (50,000-OMSP)/10,000) to work out the part on the scale. The net result is a VRT payment due of €1,349.

Revenue allows the main importer for Ireland to declare the OMSP of a car to them and very rarely question it unless the difference is egregious. You'll often see VRT calculation roughly around 95% of the sales price of a car to allow for price changes and discounts.

The SEAI grant is not included in OMSP or VRT calculations as not all buyers would be eligible for the grant.

If you are importing a used car that is also sold in Ireland, they start with the manufacturer provided OMSP and apply a depreciation factor. Where a particular model+spec was not sold in Ireland they try and match it to something similar here which is where you can end up with some crazy OMSP which don't reflect actual available cars.

Clo-Clo

Ok, I know I probably sound stupid but anyway will fire ahead

So looking at a new(to me) car. no real reason apart from I would like a change :-)

So if I get a car from Britain(England/Scotland/Wales) I get 0% VRT once it is electric and not anything massively fancy. But I have to pay VAT & Duty which will be 23% VAT and then duty which is 10%? I think

Someone mentioned about a car from NI which if in a certain date you get away with VAT but it has to be registered in the North? This is the bit I don't understand?

Sorry if this sounds stupid

Gumbo

I think there’s about 349 threads on this already so the answer may be there.

liamog

https://www.boards.ie/discussion/comment/121774373#Comment_121774373

The VRT relief applies to imported EVs under the OMSP thresholds. There's a big thread on importing from the UK in the main motors forum.

The only EV specific part is the VRT relief.

https://www.boards.ie/discussion/2058056834/importing-from-the-uk-definitive-guide-q-and-a

Wrcfocus

I have bought a 2 year old bmw in uk and have to get a customs declaration on vehicle. My customs agent says they can apply for Returned goods relief, which would be 0% duty, once i prove car was manufactured in the Eu. Has anyone heard of Bmw Air document that shows country of manufacture.

User1998

https://www.boards.ie/discussion/comment/121779059#Comment_121779059

Theres 3 letters in the VIN that prove it was manufactured in Germany

daarmcd

https://www.boards.ie/discussion/comment/121771984#Comment_121771984

The full purchase price on the Tesla website for a white model 3 highland is € 41,832

• Vehicle Subtotal €42,990
• SEAI Grant -€3,500
• Destination & doc fee €980
• Tyre recycling fee €13.78
• Vehicle Registration Tax €1,349
• Purchase Price €41,832

Includes VAT of approx. €8,224

liamog

https://www.boards.ie/discussion/comment/121781984#Comment_121781984

It doesn't matter the manual from revenue here is what's important

https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-transactions-motor-vehicles.pdf

The key part being that it's the OMSP that dictates VRT payable, not the actual purchase price. As I did in my post, you can reverse your way through the calculations to figure out that Tesla have told revenue that the OMSP is €46,226

The OMSP does not include consumer purchase incentives such as the SEAI grant.

celtic_oz

Revenue, taxing you on tax since 1993.

daarmcd

+1

daarmcd

https://www.boards.ie/discussion/comment/121783312#Comment_121783312

Me: Hello Tesla I would like to buy a white model 3 highland that you sell for € 41,832

Tesla: you have to pay VRT of €1,349 because we tell revenue the car OMSP is €46,226

Me: You are selling the car for € 41,832

liamog

https://www.boards.ie/discussion/comment/121783690#Comment_121783690

As I've explained twice already, they aren't selling the car for €41,832. They are selling a car for higher number, but you are getting an SEAI grant which reduces the price you have to pay to €41,832.

You as a private customer are paying a subsidised price not the open market price.

daarmcd

They are still selling the car for €41,832.

User1998

https://www.boards.ie/discussion/comment/121784228#Comment_121784228

No they aren’t. What is so hard to understand? They are selling the car for €46,000. The Government pays €5,000 and the customer pays the rest.

daarmcd

https://www.boards.ie/discussion/comment/121784437#Comment_121784437

Paying VRT is hard to understand. The car shouldn't have any.

liamog

https://www.boards.ie/discussion/comment/121784228#Comment_121784228

https://www.boards.ie/discussion/comment/121785488#Comment_121785488

It's been explained to you how VRT works, that the OMSP is not the same as the price business pay, that the OMSP in not the price a consumer pays after an SEAI grant is applied.

Which bit are you having trouble understanding?

daarmcd

Why is the VRT relief 5,000 euro when the max VRT on a BEV qualifying car is 2,800 euro

Why is the VRT calculated on the OMSP which already has VRT

liamog

https://www.boards.ie/discussion/comment/121786459#Comment_121786459

VRT relief was €5,000 from the pre 2021 system when the lowest rate of VRT was 14%. At the same time as they changed the VRT rate to 7% they introduced the scaling system between 40k and 50k. I suspect it's because the government at the time got away with headlines that they were keeping the €5,000 relief for cars with an OMSP under €40,000 which sounds good.

The maximum relief under the new system is on a car with an OMSP of €43,859.64 which has VRT bill of €3,070 which is all removed by the VRT relief. They probably didn't want a headline saying they were reducing the VRT relief to €3,070 even though that's effectively what happened.

As to why is VRT calculated on the OMSP, that's because it's how the government that introduced VRT made it work. The OMSP is the expected price of the pre-tax car, plus VAT, plus VRT. If you want a simple formula to work out the OMSP for a given car you can do

(preTaxPrice * 1.23)/(1-vrtRate)

For the Model 3 in your example, the pre-tax price and vat are already shown as €42,990. The VRT rate is 7% resulting in

€42,990/0.93 = €46,225.81

Which is the exact same OMSP that we were able to reverse engineer from the amount of VRT payable (after sliding VRT relief) in my earlier post. Tesla are giving revenue the most direct OMSP they can without applying a fudge factor to account for expected deals.

daarmcd

• Brand new Tesla Model 3 purchase price is €42,990, + Destination & doc fee €980 + Tyre recycling fee €13.78

so you are saying if the above price including + Destination & doc fee €980 + Tyre recycling fee €13.78 was reduced by €124 euro you would not pay VRT of €1,349 euro

the VRT bill of €3,070 would be all removed by the VRT relief.

daarmcd

It still does not change the fact on the new Tesla Model 3,

That VRT is calculated on the OMSP which already has €575 euro of VRT charged just on the VAT element of approx. €8,224

OMSP = (Net sale price x VAT x VRT) x VRT again

daarmcd

• Brand new white Tesla Model 3 black interior has a purchase price is €42,990, + Destination & doc fee €980 + Tyre recycling fee €13.78

If the above price including + Destination & doc fee €980 + Tyre recycling fee €13.78 was reduced by €124 euro you would not pay VRT of €1,349 euro

the VRT bill of €3,070 would be all removed by the VRT relief.

liamog

https://www.boards.ie/discussion/comment/121788666#Comment_121788666

The pre-tax price would need to drop to €33,162.17 from its current value of €34,951.22 to fully remove the VRT payment. That's about a €1,789 pre tax reduction for Tesla applied before VAT and VRT.

OMSP doesn't include the extra's such as Tyre recycling fee's and the data + docs.

liamog

https://www.boards.ie/discussion/comment/121788604#Comment_121788604

I've given you a formula that works, the most basic OMSP is the (NetPrice + VAT) / (1 - vrtRate). If we take away the VRT relief to avoid confusion it might help you.

netPrice + VAT = €42,990, vrtRate is 7%.

The resulting OMSP is €46,225.81. 7% of the €46,225.81 is €3,235.81. So, the resulting price of the car is €42,990 plus €3235.81 VRT, which equals €46,225.81.

If you used your formula you'd end up with an OMSP of €49,219.25. Assuming you mean use a VAT rate of 23% and VRT at 7%.

daarmcd

You said

a car with an OMSP of €43,859.64 which has VRT bill of €3,070 which is all removed by the VRT relief.

I replied

• Brand new white Tesla Model 3 black interior has a purchase price is €42,990, + Destination & doc fee €980 + Tyre recycling fee €13.78

If the above price including Destination & doc fee €980 and Tyre recycling fee €13.78 was reduced by €124 euro you would not pay the VRT of €1,349 euro