Vehicle Registration Tax

Republic of Ireland July 2008 – Vehicle Registration Tax

From July 2008, there will be significant changes to Vehicle Registration Tax (VRT) in the Republic of Ireland.

The new changes which were announced in the Budget last December will mean VRT rates are longer determined by the size of a vehicle’s engine. Instead, from July a new emissions-based system will be introduced linking VRT rates to carbon dioxide exhaust output. This will mean a lower rate of VRT for cars that have lower carbon dioxide (C02) emissions. The new system is a Government initiative designed to encourage consumers to purchase cars with cleaner engine systems.

VRT is a tax that is payable on new and imported cars registered in Ireland. Generally all vehicles brought into Ireland, except those brought temporarily by visitors, must be registered by the next day. For anyone normally resident in Ireland it is an offence to drive a vehicle which isn’t registered.

For VRT purposes normal residence is generally considered to be the place you live for at least 185 days in the year. Therefore, anyone permanently moving from Northern Ireland to the Republic of Ireland is obliged to register their vehicle at their local vehicle registration office. Those transferring residence to “normally resident” in ROI may qualify for relief from VRT provided certain conditions are met. For further information contact the Irish Revenue Commissioners www.revenue.ie

The new system is not going to affect frontier workers who continue to live in Northern Ireland. Although, it is worth noting that from 2009 there will be a major reform of Vehicle Excise Duty (Car Tax) in the UK.

© Northern Ireland Association of Citizens Advice Bureaux (NIACAB) 2008