New motor tax and VRT regime. Links + calculations

This is now included in the charter / main sticky


The new VRT system is applicable only to cars bought new in this country or imported from another country (new or second hand) and registered after 01/07/2008

VRT:

Band A (<=120 grams per km) - 14%
Band B (121-140 grams perkm) - 16%
Band C (141-155 grams per km) - 20%
Band D (156-170 grams per km) - 24%
Band E (171-190 grams per km) - 28%
Band F (191-225 grams per km) - 32%
Band G (>225 grams per km) - 36%

Note: the minimum VRT amount for cars under 30 years old changes as well. Until 01/07/2008 this minimum amount is €315 but after that date the minimum rates are based on the CO2 bands (see here on the bottom of the page):

Band A (<=120 grams per km) - €280
Band B (121-140 grams perkm) - €320
Band C (141-155 grams per km) - €400
Band D (156-170 grams per km) - €480
Band E (171-190 grams per km) - €560
Band F (191-225 grams per km) - €640
Band G (>225 grams per km) - €720

The new motor tax system is applicable only to cars first registered (when new) in 2008 and later, no matter which country they were registered in. All older cars stay on the old cc based tax system

Motor tax: New System based on CO2

Band A (<=120 grams per km) - €100
Band B (121-140 grams perkm) - €150
Band C (141-155 grams per km) - €290
Band D (156-170 grams per km) - €430
Band E (171-190 grams per km) - €600
Band F (191-225 grams per km) - €1,000
Band G (>225 grams per km) - €2,000

A simple VRT calculation:

A pre-2008 BMW 320d ES (CO2 131 g/km) listed for €47.800. The previous VRT rate is 30%, which means that €14,340 (30% of €47.800) is VRT. The list price excluding VRT is €47.800 minus €14,340 = €33,460

The new VRT rate is 16% (band . This means that the the new list price is €33,460 / (1-0.16) = €39,833. A saving of 8 grand!

In formula:

old list price * (1-current VRT rate) / (1-new VRT rate) = new list price

A simple motor tax calculation:

A pre-2008 BMW 320d ES has an annual motor tax of €590 from 01/01/2009. See here

Under the new regime, the tax is €150 per year (band


Sites with CO2 information:

http://www.smmtco2.co.uk/co2search2.asp includes slightly older cars

http://www.vcacarfueldata.org.uk/ official uk site with new cars only

http://www.parkers.co.uk has older cars too going back more than 10 years

What is acceptable as proof of CO2 when registering a second hand car:

From http://www.revenue.ie/leaflets/vrt-new-tax-regime.htm:

Imported Second-Hand Vehicles

When an imported second-hand vehicle is presented for registration, the levels of CO2 emissions at the time of manufacture must be declared to Revenue on form VRT4 (the form used by an individual to register a second hand car).

If the vehicle originated within the EU, the declaration must be supported by documentary evidence confirming the level of CO2 emissions of the vehicle to the satisfaction of Revenue.

Revenue will accept a range of documentation for this purpose. Among the documents deemed satisfactory at present are:

• the Certificate of Conformity (if it is available),
  
• a printout from the Revenue ROS Enquiry System where the level of CO2 emissions is shown www.ros.ie
  
• evidence included on a previous registration document e.g. the UK V5,
  
• the level of CO2 emissions stated on a previous National Car Test performed elsewhere within the EU provided the CO2 stated is that given at the time of manufacture,
  
• A print out for the vehicle from the DVLA (Driver and Vehicle Licensing Agency) web site, www.vehiclelicence.gov.uk
  
• A printout from the VCA (Vehicle Certification Agency) web site
  
• A printout from the SEI (Sustainable Energy Ireland) website
  
• A certificate from the manufacturer or main distributor stating the level of CO2 emissions.

If the vehicle originated in Japan, documentary evidence of the level of CO2 emissions will also be required.


The following documentation must be presented with the VRT4:

• Japanese Export Certificates or Japanese Certificates of Cancellation of Motor Vehicle Registration,
  
• a printout from the Japanese Ministry of Land, Infrastructure and Transport showing the level of CO2 emissions for the model on the certificate

Revenue are currently reviewing the additional documentation that may be required for vehicles imported from other non EU States e.g. Singapore and the United States.

If no proof of CO2 is available (older cars), it can be calculated:

From http://www.revenue.ie/leaflets/vrt-new-tax-regime.htm:

Second-hand Vehicles manufactured prior to 1997.

In certain instances the level of CO2 emissions may not be available for vehicles manufactured prior to 1997. In such instances, if details of the fuel consumption of the vehicle are available - the combined figure derived from an average of urban and extra-urban figures (obtained from any of the Revenue approved sources only), the level of CO2 for the vehicle may be calculated using the formulae below.

It should be noted that all calculations using the formulae below must be carried out by the declarant in advance of the presentation of the vehicle at a Vehicle Registration Office (VRO).
Metric Calculations:
where fuel consumption is shown as litres per 100km:

CO2 emissions = fuel consumption X 23.20
Example
If the consumption is shown as 5.8 l/100km then 5.8 X 23.20 = CO2 emissions of 134.56 or 135
where the fuel consumption is shown as litres per km:

CO2 emissions = fuel consumption X 2320
Example
If the consumption is shown as 0.0058 l/km then 0.058 X 2320 = CO2 emissions of 134.56 or 135
where the fuel consumption is shown as kms per litre:

CO2 emissions = 2320/fuel consumption
Example
If the fuel consumption is shown as 17.2 km per litre then 2320 / 17.2 = CO2 emissions of 134.88 or 135
Imperial Calculations
where the fuel consumption is shown as miles per gallon the figure must first be converted to kms per litre as follows:

mpg/2.82485 = kms per litre
CO2 emissions are then calculated using the formula in 1(c) above.
Example
If the fuel consumption is shown as 48.7 mpg then 48.7/2.82485 = 17.2 km per litre and 2320/17.2 = CO2 emissions of 134.88 or 135

Note: For diesel engines the multiplier changes from 2320 (or 23.20) to 2630 or (26.30) whichever is appropriate.

Classic cars:

Defined as being over 30 years old. These are not affected. They are VRT exempt (only due a €50 registration fee) and motor tax will be just €46 per year

Here's how VAT and VRT are calculated:

Same example of the pre-2008 BMW 320d ES that listed for €47,800.

€27,653 pre-tax price
€ 5,807 VAT (21% of the pre-tax price of €27,653)
€14,340 VRT (30% of the list price of €47,800)

---

€47,800 Total list price

Note that the total tax was 73% on top of the pre-tax price

(€47,800 - €27,653) / €27,653 = 73%