VRT OMSP question

Nighthawks

To my understanding the OMSP determined by Revenue means - car price at the time the car was new.

On an example of Mercedes 2016 C220D AMG LINE PREMIUM PLUS 2DR Automatic, the VRT calculator shows me the OMSP determined by Revenue as €49685.

Looking at the prices at mercedes.ie for this particular model the new car price is around €48000.

Now my question - the price at mercedes.ie already includes VRT, so does the revenue determines OMSP based on the irish prices already including VRT and then I pay VRT based on that = kind of twice the VRT on part of the amount?

The price for this Merc new on mercedes.co.uk is 37,730 pounds - that makes around 43000 Euro.

Is this correct? Or am i getting this wrong and the OMSP is taken based on some other calculation?

colm_mcm

Mercedes price is excluding delivery charge and metallic paint, and I think they’re still doing the 9% discount or whatever they are offering, this wasn’t around in 2016 IIRC.


You’re paying VRT on the market value in Ireland. This includes VRT, VAT and whatever else. That’s the way it is. The VRT on a new Merc is also based on the market price including VRT.

Nighthawks

This is nuts then - I mean with low VRT taxed cars <17% maybe it does not make that much difference, but with VRT>30% it makes hell of a difference.

Example:
- UK new car value 60k euro, exemplary VRT rate on that car 30%
- this car market value new in IRL then around 80k euro (dealer)
- so for the import lets assume the car is 2 years old and falls under 20% depreciation rate.

So counting only the VRT fee here that would be 20k VRT on that car new (from the IRL OMSP), then depreciated by 20% = 16k and VRT upon import *30% = 4800 Euro VRT fee out of the VRT amount already included in the OMSP price.

That's a theft. How paying VRT from VRT can be even legal?

colm_mcm

You’re paying the tax based on the value of a similar car in Ireland. Simple as that.

It’s the fairest and most scamproof way of calculating it.

You can either buy an Irish registered car that in most cases has had VRT paid at some stage, or get one from abroad and pay it.
If you want to go down the ‘isn’t it crazy’ road, a portion of what you pay for an Irish registered used car here is the residual VRT value.