If you’re thinking about buying a used car in the UK, the Revenue website has a very useful VRT calculator, which calculates the VRT that you will pay when you import a car into the Republic.
All you have to do is specify the make, model, and version of the car (all from drop-down menus), specify the mileage and date of first registration, and it will calculate the VRT liability. The whole process should take only a minute or two.
The only quibble I have about the VRT calculator is that it is prone to producing nonsensical results. For the fun of it, I input the details of a 1997 Seat Cordoba 1.4 litre petrol saloon with 225,000 miles on the clock – a car in fact that I used to own. The Revenue calculator produced a VRT bill of €480, on the basis of an “Open Market Selling Price” of €2,000!
Needless to say the €480 bill would be a multiple of the car’s true worth. And if you can find anyone silly enough to give you €2,000 for a 13-year old car with 225,000 miles on the clock, run quickly to your local scrapyard, buy as many clunkers as you can for €50 each, sell the first one to your punter offering €2,000 and then ask him where his friends live.
Then again, the Revenue have probably assumed that not many people want to import clapped-out junk cars from the UK, or anywhere else for that matter. In fairness this is hardly an unreasonable assumption.
That said, if you are importing an older car, it might perhaps be best to review the VRT treatment with a real human being in Revenue, rather than take the VRT calculator’s results as gospel.
They may have changed it recently, but when I was looking at the calculator in 2008 and 2009 the Open Market Selling Prices were very high for a lot of newer cars too. They seemed to be quoting Celtic Tiger prices for many cars and didn’t take account of the fact that actual prices for second-hand cars have dropped significantly due to supply and demand economics.
I queried this with Revenue at the time and was told that you have the right to challenge their estimate if you can back up your challenge with documentary evidence, e.g. printed adverts from dealers showing lower values etc. But the unfortunate part of the system was that you could only mount such a challenge AFTER having paid the VRT and therefore bought and imported the car. This struck me as an unsatisfactory system if you’re trying to buy the best car you can within your budget.
That’s an interesting perspective, and raises a serious question: what is the purpose of VRT?
Obviously, the purpose of any tax is to raise revenue for the Exchequer. In the case of VRT, it seems operate in a manner that discourages people from importing vehicles. This doesn’t seem to make sense. The more people who import vehicles into the State, the more VRT revenue is collected by the Exchequer. Hence it would be in the Government’s interests to encourage more vehicle imports and therefore maximise VRT receipts. Yet it does the opposite, and in doing so, it artifically deflates its own VRT revenue.
Revenue spokesmen have previously complained of the effect that “aggressive tax avoidance schemes” have on Exchequer tax receipts. In effect these schemes are artificial constructs that are designed solely or mainly for the purpose of avoiding or minimising tax liabilities, while remaining 100% compliant with existing tax laws.
It strikes me that the VRT system displays at least some of the characteristics of an “aggressive tax avoidance scheme”. It is utterly bizarre that this particular form of tax avoidance is instigated, not by taxpayers or their advisors, but by the State itself. Or am I mistaken?
I suppose it’s a tricky balancing act for the Government. On the one hand, if they encourage people to import second-hand cars they increase their VRT take.
On the other, in doing so they potentially threaten jobs in the Irish motor industry.
I’ve no idea which of the above would have a bigger overall impact on the Irish Exchequer but I suspect the threat of job losses would be politically sensitive enough to keep them from touching it.
I am sure this post has touched all the internet
visitors, its really really fastidious article on building up new webpage.
Diamond Cut Wheels Alloy Wheel Repairs & Refurbishment Glasgow. The best repair services to rapidly repair and refurbish your alloy wheels to help get you back on the road again.
Hi there it’s me, I am also visiting this site daily, this site is really
good and the visitors are really sharing fastidious thoughts.
Fantastic online video, I as well am extremely interested in the impact of technology
on education. Check? out my blog at Binary Chalk
Good site you have here.. It’s hard to find high-quality
writing like yours these days. I honestly appreciate individuals like you!
Hey I am so glad I found your webpage, I really found you by error, while I was looking on Digg for something else, Anyhow I am here now and
would just like to say thank you for a marvelous post and a all round entertaining blog (I also love the theme/design), I don’t have
time to read through it all at the minute but I have bookmarked it and also
added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the excellent jo.
Nicely, we did it! I did not stay the total day, but figure that
we had about 600-700 people. The proprietor in the shop began baking yesterday morning and went all through the night
and did not stop. We began the sale at 9am and she sold out the
entire retailer by 2pm.
If you are going for most excellent contents like me, simply visit this web
page daily for the reason that it offers feature contents,
Why viewers still use to read news paers when in this technolgical globe alll is existing on web?
This post iis really a pleasant one iit axsists new nnet viewers, who are wishing
Excellent article. I’m going through a few of these issues aas
Your mode of explaining all in this post is really good, every one be able to without difficulty know it, Thanks
obviously like your web site but you have to test the spelling on several of
your posts. Many of them are rife with spelling problems and
I find it very troublesome to tell the truth on the other
hand I will definitely come back again.
I couldn’t resist commenting. Well written!
I like the valuable information you provide in your articles.
I’ll bookmark your weblog and check again here regularly.
I’m quite sure I will learn many new stuff right here!
Good luck for the next!
Howdy! This post could not be wriutten any better!
Reading this post remindds me of my old room mate! He
always kept talking about this. I will forward this aticle to him.
Pretty sure hee will have a good read. Many thanks for
Remarkable! Its in fact amazing piece of writing, I have got much clear idea about from this post.
Also, the golod nerws about these companies is that they buy all models, types, from any
year, in good or badd condition, oldd or new, whetrher iit is
damaged or wrecked. Along the rim off the canyon to thee south and across the chasm from
of thhe visittor center, an old house site was on the
tract when the state first acquired the property.
You can reazd yesterday’s post where I outline why some car collectors
have fears about these types of programs.
This information is worth everyone’s attention. How can I find out more?
Comments are closed.