Quote Originally Posted by dergside View Post
I've been spending a bit of time recently looking at NOx figures for a variety of cars, years, etc. As well as that I've been keeping an eye on VRT for some models as I've been contemplating options for a purchase. I've noticed something interesting.

To calculate VRT you need three key pieces of information, the original OMSP - supposed to be an approximation of the list price new, but usually a littlle bit less and generally a number that doesn't change, the depreciation code - which can change from time to time and determines the residual value based on the age of the vehicle and the CO2 number - to determine the VRT rate and is a clear number for any given car. Then, just apply the formula. Going forward, an accurate NOx figure will be important too.

Since the beginning of the year Revenue have adjusted (increased) many, if not all, OMSP's by an amount that equates to the NOx levy. This is most unusual. Given the way that VRT is calculated, and that no other elements of the equation have changed, it means that VRT has increased slightly for all cars. More significantly, although technically the NOx levy isn't a tax, it effectively means that people importing cars going forward will be paying tax on a tax.

It looks like this may push some of the OMSP's over the official list prices of the cars when they were new. I suspect there could be a few grounds to appeal any VRT number for a while until they sort themselves out. There may even be some legal questions over how they've put it together, e.g. tax on tax.
The tax on a tax quandary won't bother them. VRT is already tax on a tax. The OMSP used to calculate what you owe already includes VRT and VAT, so since VRT was invented, they've effectively being charging a tax on a tax.

This is a fundamental flaw with VRT and such an Irishism. Nowhere else would you get away with this nonsense. The grey-ness of VRT also bothers me. Some cars aren't on the calculator so you're held to ransom at the counter on the day. You're also subject to arbitrary add ons when someone decides your car is a higher spec, so let's add [€1k] to what the VRT calculator spat out. You also can't challenge their assessment until after you've paid the full lump.

Very much a rant, but it's a sore point at the moment as I've been on the calculator a lot recently as I'm looking to buy a couple of things in the UK.

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