VRT Question

LFCFan

Correct me if I'm wrong but if someone imports a Car to Ireland and has to pay VRT, they are effectively paying a tax on a tax on a tax as opposed to just a tax on tax when buying the car internally?

If you calculate VRT on a car you are importing, the system gives you a Market selling price (Wholesale + VRT + VAT) and then gets a percentage of this to calculate the VRT. This means you are paying VRT on the already fully taxed selling price.

ambro25

Might I be so bold and uncough as to suggest a read of the 'importing from the UK' sticky...

blastman

Welcome to the 21st century.

You pay VRT on new cars bought here too, the amount is included in the price of the car.

LFCFan

blastman wrote:

Welcome to the 21st century.

You pay VRT on new cars bought here too, the amount is included in the price of the car.

Yes, but in that situation, VRT is paid on the Post VAT Price. What I'm pointing out is that import VRT is paid on the post VAT+VRT price so in effect you are paying a triple tax on a car you have imported. If you are importing a car they should calculate the VRT on the Post VAT price of the car, not the Post VAT+VRT price.

Rodney Trotter

LFCFan wrote:

Yes, but in that situation, VRT is paid on the Post VAT Price. What I'm pointing out is that import VRT is paid on the post VAT+VRT price so in effect you are paying a triple tax on a car you have imported. If you are importing a car they should calculate the VRT on the Post VAT price of the car, not the Post VAT+VRT price.

You are correct, VRT is calculated on the SELLING PRICE of the car, not the pre-tax price. You are paying tax, on tax, on tax. Calling it 25% or 30% tax rate is a misnomer.

BTW, as a Liverpool fan, you should be charged double tax, on top of everything else, for lask of taste! (Don't all pool fans steal their cars, anyway?)

LFCFan

Rodney Trotter wrote:

BTW, as a Liverpool fan, you should be charged double tax, on top of everything else, for lask of taste! (Don't all pool fans steal their cars, anyway?)

Oi! Some respect for the European Champions and their fans please you plonker

ambro25

As I understand it, import VRT is calculated as a fixed percentage thresholded by the engine size of the car on the basis of the OMSP. The questions are therefore:

(1) is the OMSP used to calculate import VRT the 'standard' OMSP of a non-imported IE car (as in "sold new in IE", therefore including VRT)?

(2) or is the OMSP used to calculate import VRT calculated from
(i) the OEM/dealer price-as-new
(ii) minus the applicable VRT rate at the time
(iii) plus VAT and
(iv) a ratio of depreciation applied, which is equal to the ratio of depreciation of a non-imported car (as per 1 above)?

As an aside, (a) is VAT paid on VRT or (b) the reverse (that'd be rich :eek: ) or (c) both VAT and VRT are calculated separately on the same 'EX-Works (dealership)' price?

...Lots of Googling to do, too little time