Pearse Doherty (Donegal South West, Sinn Fein)
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129. To ask the Minister for Finance following a ruling by the European Court of Justice, if he will amend the legislation to allow vehicles on loan from another jurisdiction be exempted from vehicle registration tax; and if he will make a statement on the matter. [2729/16]

Pearse Doherty (Donegal South West, Sinn Fein)
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130. To ask the Minister for Finance the legal basis on which vehicle registration tax is levied on vehicles on loan within the State from another state; how this levying is reconciled with European Union law; and if he will make a statement on the matter. [2730/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 129 and 130 together.

I am advised by the Revenue Commissioners that the legal basis for the imposition of Vehicle Registration Tax (VRT) is Part II, Chapter IV of the Finance Act, 1992. The legal basis sets out that a person may not have an unregistered vehicle in his possession (unless he is an authorised motor dealer). The emphasis in the legislation is on the registration status of the vehicle and the question of ownership is not material. I am satisfied that the levying of the tax is compatible with the provisions of the Treaty on European Union and the Treaty on the Functioning of the European Union.

In the Court of Justice of the European Union (CJEU) ruling referred to, Staatssecretaris van Financiën v L. A. C. van Putten (C-578/10), P. Mook (C-579/10) and G. Frank (C-580/10), the CJEU examined a situation where a tax was levied by a Member State on a loaned foreign-registered vehicle upon its first use of that Member States road network.

Irish legislation provides that a person has 7 days to make an appointment for registration and 30 days before the vehicle must be presented for registration. This gives the user a 30-day period within which an unregistered vehicle can be in use in the State. The CJEU case referred to addresses a situation where a person is required to pay the tax on first use of the vehicle on a national road network, a provision that exists in some Member States, such as the Member State in question in that case. 

In contrast, the Irish system is significantly different from the first use principle considered in the case and the 30-day period provides a person with a generous amount of flexibility within which to use a vehicle before registering it or removing it from the State. The CJEU case was referred to Ireland by the European Commission in June 2013 requesting that Ireland consider the ruling. Ireland responded, raising the points set out above, and the Commission accepted Ireland's position on the issue raised.

There are no plans to introduce an exemption from VRT for vehicles on loan from other Member States.