Calculating Vehicle Registration Tax (VRT)

Updated on March 10, 2022

Overview

The calculation of the Car Registration Tax (VRT) is based on the kind of vehicle being registered.

This section explains the various types of vehicles and how to determine the tax due.

The VRT manuals contain more detailed information.

Applying the tax

Linking the vehicle with a Vehicle Registration Tax category

Before Revenue may calculate the amount of tax due, the car must be assigned to a VRT category.

VRT classification A, B, C, D, and M are the five categories.

These VRT classifications correspond to European type approval classifications.

VRT Category A

VRT Category A includes passenger vehicles such as cars and minibuses. The maximum capacity of these minibuses is eight people plus the driver. In Europe, these vehicles are commonly categorised as M1. This category also includes several category N1 vehicles with four or more seats.

By adding carbon dioxide and nitrogen oxide emissions, the VRT rate is calculated. The CO2 component is obtained by multiplying the appropriate rate by the OMSP. The NOx levy is calculated independently and then added to the CO2 amount to establish the VRT owed.

The CO2 component of the tax will be calculated using WLTP CO2 data for:

Vehicles that are new to Category A (passenger cars and SUVs) and those that have been previously registered using WLTP CO2 data.
For used vehicles that utilise the NEDC figure to register, the following calculations will be applied to produce a CO2 figure and assign a CO2 tax band:

(NEDC CO2 figure multiplied by 1.1405) Plus an additional 12.858 for diesel vehicles.
Non-diesel vehicles: (NEDC CO2 figure x 0.9227) + 34.554
Starting January 1, 2022, the VRT rates for vehicles based on WLTP CO2 or predicted CO2 are shown in the table below.

CO2 Emissions (g/km CO2) (CO2 Charge) (CO2 Emissions) (CO2 Emissions) (CO2 Emissions)

A proportion of the vehicle’s value is owed up to and including 50g/km.

7% of the purchase price or €140, whichever is greater, is deducted.

More than 50 grammes per kilometre and up to 80 grammes per kilometre

9% of the purchase price, or €180, whichever is greater, is deducted.

More than 80 g/km and up to 85 g/km are acceptable.

9.75 percent or €195, whichever is greater.

More than 85 but less than 90 grammes per kilometre

10.5 percent or €210, whichever is larger.

More than 90 grammes per kilometre, but less than 95 grammes per kilometre

11.25 percent or €225, whichever is greater.

less than 100 g/km but more than 95 g/km

12% of the purchase price or €240, whichever is greater.

More than 100 g/km but under 105 g/km

12.75 percent or €255, whichever is larger.

More than 105 grammes per kilometre, but less than 110 grammes per kilometre

whichever is greater: 13.5 percent or €270

More than 110g/km but less than 115g/km

whichever is greater: 15.25 percent or €305

More than 115g/km but less than 120g/km

whichever is greater: 16 percent or €320

More than 120g/km but less than 125g/km

whichever is greater: 16.75 percent or €335

More than 125g/km but less than 130g/km

whichever is greater: 17.5 percent or €350

More than 130g/km and up to 135g/km

whichever is greater: 19.25 percent or €385

More than 135 grammes per kilometre up to and including 140 grammes per kilometre

20% of the purchase price, or €400, whichever is greater.

More than 140g/km but not over 145g/km

whichever is greater: 21.5 percent or €430

More than 145g/km but less than 150g/km

25% of the purchase price, or €500, whichever is greater.

More than 150g/km and up to 155g/km

whichever is greater: 27.5 percent or €550

More than 155g/km and up to 170g/km are permissible.

30 percent of the purchase price, or €600, whichever is greater.

More than 170g/km but less than 190g/km

whichever is greater: 35 percent or €700

More than 190 grammes per kilometre

Whichever is bigger, 41 percent or €820

VRT Category B

Commercial vehicles developed and constructed for the carriage of goods and weighing less than 3.5 tonnes are classified as VRT Category B. These vehicles are classified as European category N1 and contain three or fewer seats. Motor caravans are included in VRT Category B. VRT Manual 1A contains more information about qualifying Category B vehicles.

The VRT is usually 13.3% of the OMSP, with a minimum payment of €125.

However, some N1 vans are assessed a €200 fee if they:

There were never more than four seats available, and the laden mass was never more than 130 percent of the total mass in service.

VRT Category C

Vehicles in VRT Category C are charged €200 and are as follows:

business vehicles of a bigger size (European category N2 and N3)
Agricultural tractors, buses (European categories M2 and M3), and cars older than 30 years at the time of registration are all prohibited.

VRT Category D

VRT Category D vehicles do not have to pay VRT and include:

  • ambulances
  • refuse carts
  • sweeping machines
  • fire engines
  • road rollers
  • and
  • vehicles used exclusively for the transportation of road construction machinery
  • VRT Category M

  • Motorcycles are included in VRT Category M. (European category L1 to L7). The VRT charge is determined by the engine’s cubic capacity (cc).The rates are as follows:Each cc up to 350 is €2, and each cc after that is €1.
    The tax amount can then be decreased to reflect the motorcycle’s age as follows:Age VRT Reduction > Reduction in VRT on motorcycle to adjust for age 10 percent > 3 months and/or equal to 1 year 20 percent > 1 year and or equal to 2 years 40 percent > 2 years and or equal to 3 years 50 percent > 3 years and or equivalent to 4 years 60 percent > 4 years and or equivalent to 5 years 70 percent > 5 years and or equivalent to 7 years 80 percent > 7 years and or equivalent to 10 years 90 percent > 10 years and or equal to 30 years 100% for the past 30 years
  • Assessing the value

  • For category A and most category B vehicles, the value of the vehicle is used in calculating the VRT due. This value is known as the Open Market Selling Price (OMSP). This is usually slightly different to the invoice value of a vehicle.
  • The VRT calculator

  • On the VRT calculator, you may find the OMSP for the most common vehicles as well as an estimate of the tax payable. While the VRT calculator has over 25,000 valuations, not all vehicles are represented.When registering a car on the same day, the VRT calculator will usually provide a decent approximation of the VRT owed. However, this is merely a guess. When a vehicle is brought for registration, Revenue only calculates the actual VRT due.
  • Determining an OMSP

  • If a vehicle is not listed just on calculator, Revenue will calculate its OMSP when it has been presented for registration. Industry indicators such as UK and Irish trade guides, ads, and specialists are used to calculate revenue.
  • Revenue staff do not provide estimates of value or tax due for vehicles that have not been presented for registration.
  • If a car isn’t mentioned and you will need an OMSP estimate before purchase, you’ll have to do some digging. For makes that aren’t widely available in Ireland, the Virtual instrumentation Estimate Form can be employed.
  • Other factors affecting the OMSP

  • For VRT reasons, vehicles can be evaluated as excellent, fair, or bad. In general, most autos are regarded as good. The amount of VRT due may be reduced if you receive a fair or poor rating.Significantly higher mileage than established “norms” may result in a reduction in the amount of VRT due. The income is calculated using a monthly average mileage of 2,100 km for diesel vehicles and 1,500 km for all other vehicles.
  • Additional VRT

  • When a vehicle also isn’t registered within 30 days, an additional VRT is assessed.The extra VRT is calculated and applied to the total VRT owed. By multiplying the total VRT payable by 0.1 percent, the additional fee is calculated. From the date of its first entry, an additional 0.1 percent is put on for every day the vehicle is not registered.
  • VAT and Customs Duty

    Value Added Tax (VAT)

  • On the purchase of a new mode of transportation from another Member State, VAT may be required. If you don’t qualify for a VAT deduction, you’ll have to pay the VAT along with the VRT.A vehicle is a new mode of transport for VAT purposes when it enters the State if one of the following applies:It hasn’t been on the road for more than six months or hasn’t travelled more than 6,000 kilometres.
    Consider the following scenario:Vehicle is five months old and has 8,000 kilometres on it; it is subject to VAT.
    Vehicle is seven months old and has 5,000 kilometres on it; it is subject to VAT.
    Vehicle is seven months old and has 8,000 kilometres on it; it is not subject to VAT.
  • Customs Duty

  • On new or used automobiles imported from outside the EU, customs duty is due at the time of importation.When you register your vehicle, the NCTS will ask for proof of Customs Duty and VAT payment. This is usually done through the use of a Customs Declaration.Beginning January 1, 2021, a car imported from the United Kingdom will be classified as an import from a non-EU country. Implications of Importing Vehicles from the United Kingdom and Northern Ireland emphasises the specific requirements for importing a vehicle from the United Kingdom and Northern Ireland.
  • Electric and hybrid vehicles

  • Savings on Vehicle Registration Tax (VRT) are possible for the following types of vehicles:When a hybrid electric vehicle is first registered, it is powered by a combination of an internal combustion engine and an electric motor.
    When a plug-in hybrid electric automobile is originally registered, it has a battery that can be charged by hooking into the power grid.
    Electric vehicles, such as motorbikes, are entirely powered by batteries.
    Revenue applies the following reliefs automatically when you register at a Centre or on ROS. To get them, you don’t need to fill out any further papers or make any requests. The VRT calculator will automatically factor in the reduction when calculating the estimated tax on an eligible vehicle.
  • Hybrid and plug-in hybrid

  • Hybrid and Insert Hybrid Vehicle Relief expires on December 31, 2020.
  • Electric vehicles and motorcycles

  • Passenger automobiles or commercial vehicles in series production (VRT categories And a B) that are:VRT relief is available for vehicles powered only by an electric motor and registered before December 31, 2023, up to a maximum of €5,000.Vehicles with an OMSP (Open Market Selling Price) of up to €40,000 will be eligible for up to €5,000 in tax savings. Vehicles with an OMSP of more than €40,000 but less than €50,000 will have their relief decreased. Electric automobiles costing more than €50,000 no longer qualify for tax breaks.Electric motorcycles in series production are exempt from VRT until December 31, 2023.

    Examples of VRT chargeable calculations for electric vehicles

    Example 1: Selling Price on the Open Market: €40,000

    Using a 7% VRT, the total cost is €2,800.

    €2,800 less relief (up to a maximum of €5,000)

    VRT Reimbursable: €0

    Example No. 2

  • Nitrogen Oxide emissions

    Introduction

  • A second element was added to the calculation of Vehicle Registration Tax on January 1, 2020. (VRT). The VRT is calculated by adding the Nitrogen Oxide (NOx) charge to the carbon dioxide rates.NOx charge has more info on how this is determined.
  • Scope

  • The NOx levy applies to all Category A vehicles registered after December 31, 2019. Customers who register a vehicle after this date must show verification of the vehicle’s NOx emissions in order to complete the registration process.Failure to provide this information could result in delays or a flat cost being imposed. For further details, please go to NOx Charge. The figure for emissions can be found in a variety of places. These are outlined in the paragraphs that follow.
  • New vehicles

  • For new cars, the amount of NOx emissions is stated on the Certificate of Conformity (CoC). This document should be received from the vehicle’s seller or manufacturer.A CoC must be uploaded prior to a vehicle’s registration examination. A handbook on how to upload an eCOC is available to customers.
  • Used vehicles

  • A NOx emissions number may be included in the Foreign Registration Certificate (FRC), which is a required document for all used automobiles.If the document was created before April 2019, the NOx amount on the FRC for imports from the United Kingdom (UK) may be present. This is normally found in box V3 of the V5C registration certificate in the United Kingdom.Customers should obtain the vehicle’s CoC if it is not listed on the FRC. This information can be obtained by contacting a primary dealer or the manufacturer directly.Official recorded proof of NOx emissions from the manufacturer or an applicable regulatory authority will also be accepted by Revenue. Depending on the documentation provided, these will be examined on a case-by-case basis.

    The Ministry of Land, Infrastructure, Transport, and Tourism can provide a NOx value for Japanese imports.

    If a NOx value for a vehicle cannot be provided, a flat fee will be charged. The NOx charge has further information.

  • NOx charge

    Basis of charge

  • Beginning January 1, 2020, nitrogen oxide (NOx) emissions will be taxed. All Category A cars, save electrics and hybrids, are subject to the levy.As shown below, the NOx charge will be included in the vehicle registration tax:Total VRT payment = Carbon Dioxide Charge + NOx Charge.NOx is measured in milligrammes per kilometre and reported on the Certificate of Compliance. This will be milligrammes per kilowatt hour in the case of heavy-duty automobiles.

    The amount may also be stated in kilos per kilometre depending on documentation such as foreign registration certificates. This will have no effect on the tax due because Revenue will convert it to milligrammes during the registration process.

  • Amount due

  • The following table will be used to compute the NOx charge:NOx charge calculation
    NOx emissions (in milligrammes per kilometre or milligrammes per kWh)
    Amount due per milligramme per kilometre or milliwatt-hour-per-hour-per-hour-per-hour-
    The first 0-40 mg/km (or mg/kWh, depending on the circumstance) is €5 million.
    €15 for the next 40 mg/km or mg/kWh, or a portion thereof, up to 80 mg/km or mg/kWh, as the case may be.
    The remaining amount above 80 mg/km or mg/kWh, depending on the case, is €25.
    The following maximum charges will apply if adequate evidence of NOx emissions cannot be provided:€4,850 for diesel vehicles and €600 for all others.
    Calculation examples for VRT
    2016 4-door saloon with 1.8L petrol engine
    Documentation from the previous registration:
    – CO2 (grammes per kilometre) – Figure 124 (NEDC)
    Apply the 2021 formula to get the WLTP figure 124 x 0.9227 + 34.554 = 148.9688, which equals a CO2 (g/km) calculation of 148.9688.- CO2 (grammes per kilometre) – 148
    0.008 NOx (g/km)
    – €27,871 OMSP (Open Market Selling Price)

    CO2 Component of VRT due -149 g/km = 21% of OMSP = €5,852

    NOX Component of VRT due – 8 mg (0.008 g x 1,000) x €5 = €40

    Total VRT due (combined CO2 + NOx) = €5,892

    2006 5-door SUV with a 3L diesel engine as an example
    Sample Vehicle 2015 5-door hatchback diesel, 1.9l Sample Vehicle 2010 2-door Sports Coupe, 5l petrol