Tax Relief on Transfer of Residence (Duty Free Vehicles) - VRT 4
Introduction
This leaflet outlines the circumstances in which relief from tax may be obtained in respect of a duty free motor vehicle which has been used outside the State and is being brought into the State on transfer of residence. It should be read in conjunction with the general information leaflet on tax relief on vehicles where a transfer of residence is involved, leaflet VRT 3. In this context "tax" means Vehicle Registration Tax (VRT) and also includes import charges (i.e. Customs Duty and VAT) where applicable.
A "duty free motor vehicle" is a vehicle which has been acquired without payment of VAT, customs duty, excise duty or any other consumption taxes payable.
Scope of the Relief
Exemption from tax in respect of a duty free vehicle is only available where the vehicle has been;
- supplied under diplomatic or consular arrangements, or
- supplied to an international organisation recognised as such by the Minister for Foreign Affairs or to a member of such an organisation within the limits and under the conditions laid down by the international convention establishing the organisation or by another similar agreement.
In all other cases exemption from tax is only available for vehicles acquired duty paid (see leaflet VRT 3).
Diplomatic and Consular Arrangements
These arrangements apply to persons who transfer their residence following service abroad and who would be entitled to purchase tax free goods (including vehicles) under the Diplomatic Relations and Immunities Acts, 1967 and 1976 if they had served in a similar position in the State. The list of qualifying persons includes:
- diplomats and their family members;
- members of the administrative and technical staff of a diplomatic mission;
- certain officials, including Garda and Defence Forces personnel, serving abroad on UN missions.
Recognised International Organisations
In the case of a duty free vehicle supplied to a recognised international organisation or to a member of such organisation, the recognition of such organisation by the Minister for Foreign Affairs is a pre-requisite for obtaining tax relief. As a definitive list of such organisations is not maintained, confirmation of the status of the organisation for the purposes of this relief should be obtained from the Department of Foreign Affairs. This is a key requirement and persons who intend to seek exemption under this provision are advised to obtain the necessary confirmation BEFORE they purchase a duty free vehicle.
To qualify under either heading, the applicant
- must have been living or serving abroad for a continuous period of one year or more,
- must have had possession of and used the vehicle, outside the State, for at least 12 months before the date of transfer of residence to Ireland, and
- must not have been granted exemption from VRT on similar grounds within the preceding five years. (This rule does not apply to import charges.)
Claiming Exemption
The claim for exemption should be made as set out in leaflet VRT 3. In addition to the confirmation required in regard to a recognised international organisation, as already mentioned in this leaflet, you will be required to produce the following:
- a certificate from an appropriate authorised official confirming your official status and your entitlement to purchase a duty free vehicle;
- a copy of your contract for service abroad;
- evidence of service and actual residence abroad;
- evidence of acquisition of and payment for the vehicle (e.g. invoice, bank statement, HP agreement etc.);
- evidence of both possession and actual use of the vehicle abroad for a period of 12 months, (e.g. certificate of insurance, registration document, fuel and maintenance charges etc.);
- other such evidence as may be requested in individual cases.
In addition, you may also be requested to provide documents relating to shipment of the vehicle from the country of former residence to Ireland, such as shipping documents, etc. and, where appropriate, shipment of the vehicle from the country of acquisition to the country of former residence.
Disposal of relieved vehicles
A vehicle in respect of which relief has been granted may not be sold or otherwise disposed of, hired out, lent or given as security in the State during the 12 months following the date of registration without payment of the exempted taxes.
Application forms & additional information.
Additional information and application forms are available from your local VRO. Regional VRO Contact Details.
Warning
It is an offence to make a false declaration for the purpose of claiming relief from duties and taxes or to furnish false documentation in support of such a claim.
Note
This leaflet does not purport to be a legal interpretation or a comprehensive statement of the laws and regulations relating to tax relief on Transfer of Residence. These are contained in
- the Finance Act 1992 (as amended) and Statutory Instrument No. 59 of 1993 for VRT
- Council Directive 83/181 (EEC) and S.I. 183 of 1985 for VAT
- Council Regulation (EEC) 918/83 for Customs duty.
June 2004