HelpDesk

Michael McAleer answers your questions

Michael McAleer answers your questions

From Con Nolan:

My son is coming home from France to live here after being there for about three years. He bought a new Renault when he arrived there.

If he brings back the car to this country, will he have to pay VRT or any tax and what is the procedure?

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He will not be going back to France to live, except maybe for a holiday.

If he does have to pay tax, would it be cheaper and better for him to sell the car the before returning?

The good news for your son is that he will not have to pay any VRT or other punitive taxes on his car when he returns home to live.

While those taxes apply to Irish residents importing cars from abroad, there are exemptions for those moving into - or back to - the country.

For example, people who have owned their vehicles abroad for more than six months and who are moving permanently to Ireland are exempt.

However, he should be aware that if he qualifies for the exemption he cannot sell his car here for 12 months after it is registered here. Only cars where the VRT is paid are allowed to go on sale at any time.

The rules state that if you are moving here, then you must register the car by the end of the next working day following its arrival in the State.

To do this he needs to go to the nearest Vehicle Registration Offices (VRO) and present his foreign registration documents. He should also have a copy of the purchase invoice or other evidence of payment for the vehicle.

Once the vehicle has been registered, he will receive a receipt, which specifies the registration number allocated is supplied. The new registration number must be displayed within three days. While it sounds arduous, the paperwork is pretty straightforward and even though he has to hold on to the car for at least a year, the lower price he paid for it in France will stand to him when he goes to resell the car.

From IF:

As of January 1st, 2006, the Government allowed 50 per cent VRT reduction on cars that use E85 wanting to be registered in Ireland. I have a petrol car that has been converted to use both E85 and petrol. Will this qualify for this VRT discount? It has been modified and has not come from the showroom like that.

Unfortunately that's not possible. The VRT reduction is only available on factory fit conversions, and does not apply to vehicles converted after purchase.

It seems a relatively pedantic point by the Government, but the aim is to prevent people converting cars, getting the rebate and then changing them back. The taxation rules are applied with the most devious in society in mind.

From K McGrath:

Fuel costs: Free market economics is one thing, but the prices being charged for fuel at some stations is outlandish. Everyone - including Motors - has been giving out advice about shopping around for cheaper fuel.

The problem with this advice is that you end up wasting all your time driving around looking for fuel. Surely that's as much a waste of money as paying for overpriced petrol?

Good point. However, there are some simple solutions. You could try talking with other motoring colleagues; it's surprising how well word of mouth works.

Personally I find taxi drivers are very astute buyers and worth consulting about the best fuel prices in your area.

There is also some online help at hand. There's a website called www.irishfuelprices.com that monitors prices across the State. It's worth a visit.

Admittedly the public enters prices, but several we have checked with the site are accurate.

If an example were ever needed of the price differences at stations these days, we have come across several stations in north Dublin with prices in the region of €1.19 for a litre and at the other extreme one with prices of at €1.35 per litre for petrol. If you are filling up every week, you'll be glad you find a cheaper out. When it comes to fuel prices, buyers beware.

Send your queries to Motors Helpdesk, Irish Times, D'Olier Street, Dublin 2 - or e-mail motorshelp@irish-times.ie