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How is VRT calculated on an exotic car?

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  • 25-02-2007 11:54am
    #1
    peasant
    Registered Users Posts: 17,819 ✭✭✭✭


    "exotic" as in: there is none for sale in Ireland and therefore no "open market selling price".

    Say you absolutely want to bring in the latest Mongolian (for example) LHD sports car. There are none of that type for sale in Ireland or the UK, even the car magazines have never heard of it.
    Let's assume it's decent enough car with a big engine and a bit of power, but as it's made in Mongolia its list price there is something ridiculously low like 15k and you got it nearly new for 12k.

    How do the VRT people arrive at a "open market selling price"? Do they compare it to equally powerful sportscars that are for sale here for three times the price? Do they pull a figure out of the air? Is the price you bought it for (or the list price) of any concern for them at all?

    Does anyone know the "Rulez and Regulationz" as to what mechanism is used to determine the VRT rate?


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    #2
    peasant
    Registered Users Posts: 17,819 ✭✭✭✭peasant


    ok ...slightly less Mongolian example:

    A highly qualified Romanian computer expert has been offered a minimum wage job in Ireland. Blissfully unaware as he is of Irish circumstances he celebrates the good news by scraping togehter his savings and buys himself a brandnew bottom spec LHD 1.4 Dacia Logan estate (available in Romania for like 6k). (not yet available in RHD anywhere)

    He takes up residence in Ireland and registers his car here. As he's only had it for a week he has to pay VAT and VRT ...but how much VRT?

    As much as on the eqivalent 1.4 Skoda Fabia (seen as how that's the closest you can get to Romanian cars:D )?
    Or as much as on a 1.4 Megane estate (as Dacia is owned by Renault:D )?

    Does he get a discount for LHD?

    Does the fact that the original list price is only 6k play any role at all?

    Or does he pay VRT on the musings of some journalist who expects that the RHD version (built in India) will be available in the UK at some stage?


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    #3
    patsyh
    Closed Accounts Posts: 161 ✭✭patsyh


    as its a 1.4 it'll be 27.5% of the open market value in ireland(dont know how they'll work that out but they'll find a way and doubt they'll base it on a car costing 3times as much). He should have bought a 2nd hand car with greater than 6k miles and save the 21% vat


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    #4
    peasant
    Registered Users Posts: 17,819 ✭✭✭✭peasant


    patsyh wrote:
    (dont know how they'll work that out but they'll find a way and doubt they'll base it on a car costing 3times as much).

    That kinda is my question, though:D :D:D ...how exactly DO they work it out and WHAT do they base it on?


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    #5
    bennyx_o
    Registered Users Posts: 4,092 ✭✭✭bennyx_o


    They could, but probably don't base it on a "similar" spec car available here, but then considering it cost a lot less it wouldn't be too fair.


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    #6
    maidhc
    Registered Users Posts: 7,660 ✭✭✭maidhc


    peasant wrote:
    That kinda is my question, though:D :D:D ...how exactly DO they work it out and WHAT do they base it on?

    TBH it seems like a best guess + add a few bob to be sure + add lots of bobs if the car is popular sort of procedure.


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    #7
    peasant
    Registered Users Posts: 17,819 ✭✭✭✭peasant


    for a real life example see here:
    http://www.boards.ie/vbulletin/showthread.php?t=2055058337

    And the other question ...what will the Dacia Logan eventually sell for, if and when it gets here?

    You can get it in Germany for as little as 7k (bottom spec sedan) to 12k (high spec 1.5D 7seater estate)


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    #8
    Owen
    Registered Users Posts: 12,683 ✭✭✭✭Owen


    It is possible to argue with the Revenue over the VRT on true exotic machines, Porshces, Ferraris, etc. One of my mates is a Revenue Consultant, and will call on site to appraise a vehicle such as this personally. And no, brown envelopes don't work with him!


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    #9
    G Luxel
    Registered Users Posts: 1,407 ✭✭✭G Luxel


    I have seen about 5 or 6 logans here. Only one of them is now an Irish reg 05 with a high digit number, although I dont know what the story is with VRT etc.


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    #10
    smash
    Closed Accounts Posts: 34,809 ✭✭✭✭smash


    patsyh wrote:
    as its a 1.4 it'll be 27.5% of the open market value in ireland(dont know how they'll work that out but they'll find a way and doubt they'll base it on a car costing 3times as much). He should have bought a 2nd hand car with greater than 6k miles and save the 21% vat
    no, anything up to a 2ltr is 25%, and over a 3ltr is 33%


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    #11
    unkel
    Registered Users Posts: 65,394 ✭✭✭✭unkel
    Chauffe, Marcel, chauffe!


    peasant wrote:
    You can get it in Germany for as little as 7k (bottom spec sedan)

    Indeed. Very good value for money. The cheapest Toyota Yaris 5-door 1.0 costs twice that over there!

    @peasant: ring / email a VRO with above Dacia question and see what they come out with


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