Pearse Doherty (Donegal, Sinn Fein)
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259. To ask the Minister for Finance if the vehicle classification and VRT calculation will be reviewed for a person (details supplied) in County Donegal; and if he will make a statement on the matter. [35459/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The registration of vehicles is a mandatory requirement in all EU Member Countries. In some countries, including Ireland (the State), it is used as an event at which a tax is collected.

This tax is known as Vehicle Registration Tax (VRT) and was introduced in the Finance Act 1992. VRT is required to be paid at the time that a vehicle is registered in the State, and within 30 days of that vehicle’s date of entry. Further information on the VRT registration process is available on Revenue’s website:

Most vehicles which are in the State permanently, are registered and have VRT paid. There are, however, specific instances when a vehicle may be entitled to a Permanent Relief from VRT under a Transfer of Residence (TOR) procedure. Revenue’s VRT Tax and Duty Manual Section 02 contains further information, and a copy is accessible at:

The Finance Act 1992, S.134 (1) (a), and the Vehicle Registration Tax (Permanent Reliefs) Regulations, Regulation 4, 1993 (S.I. 59 1993) set out the provision and eligibility criteria for permanent relief of Vehicle Registration Tax (VRT) under a TOR procedure. TOR relief can be granted in respect of ‘personal property’, which is defined as property for the personal use of the person concerned and his household living with him outside the State but does not include property, which by reason of its nature or quantity, reflects any commercial interest or is intended to be used for any commercial purpose.

Revenue has advised me that they have reviewed the vehicle classification and VRT calculation regarding the vehicle in question and are satisfied that its assessment is correct. The vehicle is a 2022 Ford Ranger 2.0 Wildtrak and described as a light commercial vehicle not exceeding 3,500 kilograms in weight. These vehicles fall under the EU Classification of N1.

Vehicles classified as EU N1 (light commercial vehicle) are generally VRT Category B vehicles and liable to VRT at 13.3% based on the Open Market Selling Price (OMSP) with a minimum charge of €125. Examples of vehicles which would fall into this category are pick-ups, tippers, recovery vehicles and similarly designed vehicles.

The OMSP is the price, inclusive of all taxes and duties, which, in the opinion of the distributor, a new vehicle of the model and specification, including factory/distributor-fitted enhancements and accessories, would fetch on a first arm's length, retail sale in the open market in the State (section 133(2)(a), Finance Act, 1992, as amended).

In this specific case, Revenue have further advised that the OMSP was €41,892 and VRT was calculated at the VRT Category B rate of 13.3%, giving a VRT figure of €5,571. As the vehicle was being imported into the State from outside of the EU, VAT of €7,495 was also charged. The total liability arising was therefore €13,066.