Authorisation of Motor Traders under Section 136 of the Finance Act 1992
New Regulations have been introduced which revised the requirements for issuing authorisations to motor traders under Section 136 of the Finance Act 1992.
The Regulations [1] also specify some of the circumstances in which an authorisation may be revoked. This is not an exhaustive list but gives an indication of what is deemed as a reason for revocation.
Application for Authorisation
Individuals, partnerships and companies who wish to carry on a motor business as outlined in Section 136 of the Finance Act 1992 [2] i.e. who wish to deal or trade in unregistered/foreign registered motor vehicles, must make an application to do so.
The application should be made on 
Form VRT 1 (rev.2) Application for authorisation under the Finance Act 1992, S.136 (PDF, 41KB) which is available on the Revenue Website (www.revenue.ie) or at any Revenue Office.
A Supplementary form (VRT 1A) (PDF, 24KB) should be completed where you utilise premises for your business in relation to unregistered vehicles or converted vehicles outside of the main business premises which you have specified on form VRT 1
An application should only be made where the applicant –
- Intends to be actively engaged in a business outlined in Section 136 of the Finance Act 1992 at premises occupied by them and at which such a business may be legally carried on,
- Is registered for VAT under Section 9 of the Value Added Tax Act 1972 and
- Is the holder of a current general Tax Clearance Certificate [3] issued by the Collector General of Revenue.
Application forms and the relevant documentation should be sent to the applicant’s local Revenue Office. An authorisation will only be issued if the Revenue Official is satisfied that all of the conditions outlined above are met.
Tax Clearance
Applications for Tax Clearance Certificates may be made online
or by completing Form TC1 (PDF, 59KB) and submitting this to the local Revenue Office.
Premises
It should be noted that there are now two requirements in respect of the premises covered by the authorisation.
- They must be "occupied" by the applicant, i.e. owned by the applicant, or rented or leased by them under legal contract or agreement.
- In addition it is now a requirement that the premises must be one "at which such business may legally be carried on ". This excludes premises, such as front gardens or driveways, or other places where the carrying on of the business is not permitted under the planning laws. The premises must be one from which it is legal to carry on a business.
Revocation of an Authorisation
Section 136 of the Finance Act also permits Revenue to revoke authorisations at any time "for reasonable cause" and following reasonable notice.
The circumstances in which an authorisation may be revoked include the following –
- The holder is no longer actively engaged in one of the prescribed businesses or never commenced the business,
- The holder fails to produce a Tax Clearance Certificate when requested to do so or
- The holder does not keep the records of the business as prescribed by the Revenue Commissioners.
This is not an exhaustive list and authorisations may be revoked in any case where the requirements and conditions are not met, e.g. de-registration for VAT purposes.
In all instances the authorised person will be given reasonable opportunity to get their affairs in order. However, if the authorised person is unable or unwilling to meet the requirements the Revenue Commissioners [4] will revoke the authorisation.
Where an authorisation is revoked the business concerned may no longer hold unregistered vehicles. If the business continues to hold unregistered vehicles/foreign registered vehicles, enforcement and seizure procedures may be initiated by Revenue.
Implementation Date
All new applications for authorisation under Section 136 of the Finance Act 1992 received after the 1st of September 2007 must meet the revised requirements.
Persons currently trading without authorisation must make immediate application to their local Revenue Office seeking authorisation to continue to carry on their business.
Please note that it is an offence for an unauthorised person to be in possession of unregistered/foreign vehicles for resale. The person concerned is liable to prosecution in this regard and the vehicles are liable to seizure.
[1] Statutory Instrument 576 of 2007
[2] Manufacture, Distribution, Deal in, Deliver, Store, Repair or Modify unregistered vehicles and to convert registered vehicles
[3] Applications for Tax Clearance Certificate may be made online at www.revenue.ie
[4] Or a person designated by them
October 2007
