VRT Examples

RSMike said:

Bloody Hell, thanks Amadan, (Alan Moore pointed out my error also), so VRT is even worse than I suspected.

But not sure the new figure is correct either as the new VRT rate I reckon for a Car with a 139 CO2 figure is 16%?

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RSMike,
you're correct -16% is the rate so the new purchase price would be €26964.29.
I've made up a simple spreadsheet to calculate the new purchase price for a car - just enter the old and new VRT rates which apply for the car in question and the current purchase price. You can download it from link below - file is tiny so should only take seconds.

Link: http://download.yousendit.com/8836740E25BA0AD1

Amadan, Thats excellent, very useful, thanks,

amadan said:

RSMike,
Your calculations have an error in how VRT is applied. I was not sure myself so I checked the SIMI website at
[broken link removed]
The critical line here is that
"Vehicle Registration Tax is applied ad valorem which means it is applied on a value which includes the tax itself"

So in your example above the VRT paid on a 116i is €7550 not €4992.
So you need to work backwards from the purchase price to arrive at the pre tax price as follows: (note VAT is not applied ad valorem)

Old VRT rate 25.00%
VAT rate 21.00%

Old purchase price €30,200.00
Deduct Old VRT €22,650.00
Deduct VAT €18,719.01

Pre Tax Price €18,719.01

Now apply VAT and the new VRT rate:

New VRT rate 20.00%
VAT rate 21.00%

Pre Tax Price €18,719.01
Add VAT €22,650.00
Add new VRT to arrive at new purchase price €28,312.50

gIvestor - the new VRT rates are at:
http://www.budget.gov.ie/2008/downloads/AnnexD.pdf

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Thanks for the link. I have just noticed that the VRT payable on my car has dropped to 24%.

BMW 320i Convertible has CO2 (g/km) of 161 according to

This had a VRT cost of 30% which has now fallen to 24%. Since this is not coming in until next June - would there be a case to make when paying the VRT on the vechile now ?

RSMike said:

I thought there was juat a flat 9.5% increase on road tax up to 2.5 litres, so the Audi 1.8 (assuming its the usual 1798cc or something like that) would be €576 pa and the 320D would be €641 pa ??

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Thats correct for 2nd hand cars, but not for new ones.

It will be interesting to see if this change makes any difference to the car sales in July.
A (VW) carsales friend says that they sell 85% of their new cars for the entire year before June 1st each year.

I imagine a lot of diesel sales, especially fleet cars (Mondeo's, S40's, 407's, etc) wil be put off until July if the tax was dropping from the old €600 band, into the new €290 band.

Also remember that if you are purchasing one of those diesels 2nd hand in a year or two, a Jan-Jun '08 car will still cost €600 to tax, and the one registered in July onwards will only cost €290.

Yes paddyd and the person that buys new low emission car Jan- June in 2008 will pay higher tax each year going forward and will suffer most on trade in values because his car s/h will have to compete with same type low emission cars that have lower tax every year because they were registered from July 2008.
This is outrageous and should not be implemented unless all low emission cars are treated equally.

Hi just wondering if there is an irish site which lists the co2 emissions of new and old vehicles?