The cost of bringing a bike in from overseas can add up
Better value before VRT isn't always after it's been paid
Vehicle registration tax is a tax commonly known as VRT. It’s applied to every vehicle imported into Ireland. This would applied to include both new and used motor vehicles brought into the country. There a few, very few, exceptions. It also has to be paid within 30 days of arrival in the country. It’s frequently viewed as being anti competitive, especially where European prices are concerned and is, therefore, about as popular as Go Safe van on a motorway.
This tax is paid at the time of sale when the dealer registers the vehicle and by a private individual when the vehicle is registered. Other than brand new cars, used cars and commercials need to be presented to an NCT centre for calculations on the exact figure due.
Pricing of VRT is calculated based on CO2 emissions and the open market selling price (OMSP) value of the unit. This OSMP sets the price and value of the unit being taxed. This price is pre both the VRT and the VAT (Value Added Tax) due.
For most of us mere mortals this is where it gets a bit complicated. The total effective tax rate of a vehicle purchased in Ireland is the sum of the VRT and VAT paid divided by the pre-tax price of the vehicle.
Confused? So are we, but there's no need to be.
One of the interesting things for us motorcyclists is that none of the above applies to us. The OSMP has nothing to do with it and neither do the CO2 emissions. Rather our VRT is based on cc’s and nothing else. For the first 300cc the price is two Euro per cc. After that the price falls to one Euro per cc.
Also if the branding on the bike, such as a scooter like the Yamaha XMax references it being a 300, it’s the actual cc of the engine that dictates the price. In the case of the XMax the engine size is 292cc. Since the value of the VRT is the capacity of the bike multiplied by two it’s €584 and not €600.
Like the VAT, the VRT is included in the selling price of the bike. If you’re being quoted the price before taxes, of any sort, you’ll need to find another shop, as the one you’re dealing with are not to be trusted!
One of the more interesting things that we are finding around this tax is the complimentary VRT payment offer. This is where, rather than offering a discount on over stocked models, for example, the distributor soaks up the cost of the VRT and pays it without passing this it on to the consumer. This saves, at least a few hundred Euro on the price paid, but does so without affecting the future used sales price of the bike.
Finnaly, when calculating the real price of that absolute bargain you found somewhere on the continent or in the UK, add the taxes and you may find that you're not getting nearly as good a deal as you thought you were after the revenue commisioners take their pound of flesh...