Vehicle Registration Tax – your questions answered

In the Sunday Independent on 7 March 2021, Crowe tax partner, Lisa Kinsella, answers an Irish Independent reader’s question on moving back to Ireland and Vehicle Registration Tax (VRT). 

Tax bill on taking car back from UK

Q. I am currently working and residing in the UK and intend to buy a car. I will be returning to live in Ireland next year — and plan to take the car back with me. If I have owned the car for at least six months, will I be exempt from the duties and taxes that would otherwise apply when registering a car in the Republic of Ireland? Marie, Sligo

A. In general, all vehicles brought into Ireland are subject to Vehicle Registration Tax (VRT) and must be registered. Vehicles brought in from outside the EU will be subject to customs duty and Value Added Tax (Vat).

If you are moving to Ireland and bringing your car with you, before you’ll be permitted to drive your car in Ireland, you will need to pay VRT or customs duty and Vat (unless you are exempt), obtain a new registration plate and pay for motor insurance and motor tax.
Provided you meet certain conditions, it should be possible to apply for an exemption from VRT, customs duty and Vat if you are a private individual transferring your normal residence permanently to Ireland.

The UK’s exit from the EU should not affect your eligibility for exemption. To qualify for the exemption, you must have lived in the UK for a continuous period of 12 months and had possession and use of the vehicle for more than six months before you return to Ireland. You must also be the owner of the vehicle when returning.

All taxes due on the car must have been paid in the UK and the car must be transferred to Ireland within one year after the relief is granted. This relief is available for personal vehicles and is not available if you have any commercial or business interest in the vehicle.

To claim this relief, a completed Form VRT TOR (Transfer of Residence) must be submitted to your local Revenue office within seven days of your arrival — where you accompany the car into Ireland. An appointment must also be made within the same seven days at your nearest National Car Testing Service (NCTS) centre. Evidence of transfer of residence must also be provided.

If you do not accompany the vehicle into the State, a completed Form C&E 1076 must be provided to the customs officials at the point of entry into Ireland. An appointment must also be made with the NCTS centre within seven days of the vehicle’s release from customs control.

For additional information on vehicle or any personal tax matters, please contact a member of our tax team.