Seán Haughey (Dublin North Central, Fianna Fail)

I am taking this Adjournment matter on behalf of my colleague, the Minister the Environment, Heritage and Local Government, Deputy John Gormley. I thank Senator Carroll for raising this matter and hope I can provide the clarification he is seeking.

There is no requirement for the owner of a commercial vehicle to have a VAT number to pay road tax. The legal position is that to be taxed as a goods vehicle, a vehicle must be constructed or adapted for that purpose and used solely in the course of trade or business. Under section 2 of the Finance (Excise Duties) (Vehicles) Act 1952, if a vehicle is used in a condition or manner which would attract motor tax at a higher rate, tax then becomes payable at that rate. In other words, if a goods vehicle is not used solely in the course of trade or business, it must, like all other private vehicles, be taxed at the private rate of motor tax.

Under Article 3 of the Road Vehicles (Registration and Licensing) (Amendment) Regulations 1992, a licensing authority must be satisfied that it is authorised to issue the licence applied for and, accordingly, that it is the appropriate licence for the vehicle. It is thus open to a motor tax office to seek additional documentation to support an application for a goods vehicle licence. Such documentation may include a certificate of commercial insurance or evidence of registration for VAT purposes or, at the discretion of the licensing authority concerned, any other appropriate document. Provision of a VAT certificate would assist in satisfying a local authority that a goods vehicle licence is appropriate, but other documentation is also acceptable. It would not be expected that any person genuinely using a vehicle in the course of trade or business should have a difficulty supplying documentation to support a claim for what is, in effect, a concessionary rate of motor tax.

Form RF111A Goods Declaration Form, which may also be required by the licensing authority, has been in existence for a number of years and is not a new requirement. It constitutes the statement by the applicant that the vehicle is being used in the course of trade or business. This declaration should not need to be sought at every renewal once particulars of the vehicle have not changed, but it is normally sought at the time of first taxing as a goods vehicle and on change of ownership.

The legal provisions governing the taxation of goods vehicles have not changed. It has been brought to the attention of the Department of the Environment, Heritage and Local Government that high-powered, high-specification vehicles that would not normally fall into the goods vehicle category are being increasingly claimed as goods vehicles. In that regard, it is important that motor tax offices follow the requirements to ensure a vehicle is correctly taxed. If a concessionary rate of tax is being claimed in circumstances where it is not warranted, in effect other road users are being asked to make up the resulting loss of income. In the interest of fairness, all road users should pay the rate of motor tax appropriate to their vehicle and the use to which it is put in line with the relevant legal provisions.