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11-12-2007, 11:01   #1
unkel
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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 B). 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 B)


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:


Quote:

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:

Quote:
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%

Last edited by unkel; 05-01-2009 at 15:31. Reason: Update with 2009 motor tax rate links
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11-12-2007, 12:01   #2
galwaytt
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Try SMMT, here: http://www.smmtco2.co.uk/co2search2.asp
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11-12-2007, 12:56   #3
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Thanks for the link, galwaytt, but I don't like that site. It's cumbersome (have to fill in all sorts of irrelevant spec levels) and it doesn't have the CO2 for my car. My car was still for sale in the UK in 2001 so it's not great. Unless I am missing something? 2001 BMW 735

Any other sites?
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11-12-2007, 13:17   #4
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Originally Posted by unkel View Post
Any other sites?
http://www.vcacarfueldata.org.uk/
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11-12-2007, 13:35   #5
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how will commerical tax now be calcualted?
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11-12-2007, 15:07   #6
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Originally Posted by MuffinsDa View Post

Good site. Only has new cars though. I'd like to know where the VRO are going to base the data on for second hand cars...
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11-12-2007, 15:52   #7
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Quote:
Originally Posted by unkel View Post
Good site. Only has new cars though. I'd like to know where the VRO are going to base the data on for second hand cars...
Why would they bother to base anything?

Unless the importer can come up with certified, EU approved, verifiable figures, they're just going to charge full whack.

(I'd expect they'd want to see something very official ...some quote from a website won't do.)

Should be good bizznizz for them

Last edited by peasant; 11-12-2007 at 15:54.
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11-12-2007, 15:58   #8
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Quote:
Originally Posted by the drifter View Post
how will commerical tax now be calcualted?
I imagine it's unchanged.

I pray it's unchanged!

Edit: goes up 9.5%. Not too bad. I just taxed for 12 months in October.

Last edited by ballooba; 11-12-2007 at 16:07.
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11-12-2007, 16:52   #9
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Quote:
Originally Posted by peasant View Post
Unless the importer can come up with certified, EU approved, verifiable figures, they're just going to charge full whack.

(I'd expect they'd want to see something very official ...some quote from a website won't do.)
You're spot on. From here:

Quote:
7. Determining CO2 emission levels of vehicles
The CO2 emission rating for each new car being registered will normally be determined based on the emissions information contained in the model’s Certificate of Conformity, a document which, since 2001, European law has required to contain such information. In respect of used imports, the CO2 rating will have to be declared on form VRT4 (Declaration for registration of a used vehicle) by the person registering the vehicle. The declaration will be required to be supported by documentary evidence of the CO2 rating, for example, a Certificate of Conformity, a previous registration certificate, or a certificate from the manufacturer or a main distributor, provided in each case the CO2 rating is included; or a certificate from an
organisation approved by the Revenue Commissioners to provide such certificates. Where a certificate or a measurement is not available or fails to satisfy the Revenue Commissioners, the VRT tax charged could be set at the maximum VRT rate allowable. Such a VRT rating would be open to appeal through the VRT appeals system.
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12-12-2007, 10:28   #10
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that's a question I posted before - 'the maximum VRT rate allowable' - what is this?

In the case of a car for which there is no C02 data published, (typically pre-2001), does that mean 36% ? - or, and I'd certainly be pushing for this, that it be the max VRT rate on the aged equivalent.? E.g. my '94 968 - there is no data on it. So, VRT on that should be on the same basis as previous, and the OMSP should be as per current market value (i.e. reflected by the 'old' system), i.e NOT 36% ?

Likewise with the tax, btw.......whichever rate of VRT you get it at, you now need to tax it. So, again, no C02 data, so, I should be able to tax it for Eur1490, not 2k.

Yesh?

Why am I bothered, when I already have the car? - easy, I want to change in March.......
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12-12-2007, 10:44   #11
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Why am I bothered, when I already have the car? - easy, I want to change in March.......
Get with the programme ......this country is GREEN now

You're not supposed to import some old "stinker" anymore. Unless you can prove that it isn't a heavily polluting car, they're just going to assume that it is and hit you with everything they got.

Any pre 2001 (or thereabouts) car without verifiable CO2 data from July onwards will attract the highest VRT rate and an automatic road tax of 2000 euro. If you're keen enough to import anyway, they'll gladly take your money.

I can't see that there will be any exemptions on this


(and I'm kind of wondering myself on what to import on reserve before this happens )
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12-12-2007, 11:03   #12
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Originally Posted by peasant View Post
and I'm kind of wondering myself on what to import on reserve before this happens
Seriously considering bringing in an early W126 500SEL. My favourite saloon ever. An '81 one will cost maybe a grand in VRT and a couple of years of €1491 in tax, after which it will go down to the classic €46 tax

Hell, I'll make this into a new thread
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12-12-2007, 11:09   #13
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Seriously considering bringing in an early W126 500SEL. My favourite saloon ever. An '81 one will cost maybe a grand in VRT and a couple of years of €1491 in tax, after which it will go down to the classic €46 tax
And there was I thinking you were a BMW fan!
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12-12-2007, 11:42   #14
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And there was I thinking you were a BMW fan!
I'm not! I've said it many times: I like many different cars. I've happily owned large V8 BMW petrols for the last 7 years, but I can surely see myself owning other cars
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13-12-2007, 14:54   #15
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VAT on second hand cars imported from Japan

Hey,

Does anyone know if you have to pay VAT as well as excise duty on importing a second hand car from Japan.

Any advise would be fantastic, can't get any info from tax office or revenue, just keep getting bounced from one department in Shannon to here then there..... etc
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