Understanding VRT on Used Cars in Ireland

What is VRT?

Vehicle Registration Tax (VRT) is a tax charged on all motor vehicles being registered in Ireland for the first time. It applies to:

• New cars purchased from a dealer in Ireland (VRT is included in the on-the-road price)
• Used cars imported from abroad (the owner must pay VRT themselves)
• Vehicles that have been previously registered in another country and are being brought into Ireland permanently

If you're buying a used car that is already registered in Ireland, VRT has already been paid — you don't need to pay it again.

How is VRT Calculated?

VRT is calculated based on two factors:

• The vehicle's OMSP (Open Market Selling Price) — this is Revenue's estimate of the price the vehicle would sell for in the Irish market, not the price you actually paid.
• The vehicle's CO2 emissions band — different emission levels are taxed at different percentage rates.

OMSP — Open Market Selling Price

The OMSP is determined by Revenue and represents the price, inclusive of all taxes, that a vehicle would be expected to fetch on a first arm's-length retail sale in the open market in Ireland. Revenue determines this using a combination of sources including manufacturer's recommended retail prices, real-world sales data from NCTS centres, independent valuation guides, and manual appraisal for rare or modified vehicles. For used vehicles, Revenue applies standardised depreciation based on age, mileage, condition, trim level, and optional extras.

You can look up the OMSP for most common vehicles using Revenue's online VRT calculator. Not all vehicles are listed — if a vehicle is not on the calculator, Revenue will determine the OMSP only after it is presented for registration.

Key points about OMSP:

• It may be higher or lower than what you paid for the car abroad
• You can check the estimated OMSP using the Revenue VRT calculator before purchasing. Independent calculators such as VRT.ie and Motorcheck also provide estimates
• If you disagree with the OMSP assigned at inspection, you can appeal. You must first pay the VRT in full, then submit a formal appeal to the National VRT Service within two months of registration, providing evidence such as comparable Irish market listings, dealer valuations, and condition documentation. If unresolved, you can escalate to the independent Tax Appeals Commission (TAC) within 30 days of Revenue's decision. If successful, Revenue will refund any overpayment. Full details are on Revenue's VRT appeals page.

CO2 Emission Bands

The VRT rate is applied as a percentage of the OMSP, based on the vehicle's CO2 emissions (WLTP). Lower-emission vehicles attract a lower VRT rate. There are 20 bands for Category A (passenger) vehicles, ranging from 7% to 41%:

Source: Revenue.ie — Applying the tax. These rates apply to vehicles registered using WLTP CO2 data. Older vehicles with NEDC-only figures are converted using Revenue's official formulae before being assigned a band.

VRT Calculation Example

Take a 2020 Volkswagen Golf 2.0 TDI with WLTP CO2 emissions of 128 g/km. Revenue assigns an OMSP of €22,000.

• CO2 band: 126–130 g/km = 17.5% of OMSP
• CO2 component: €22,000 × 17.5% = €3,850
• NOx levy: Assuming NOx emissions of 60 mg/km: first 40 mg × €5 = €200, next 20 mg × €15 = €300. Total NOx = €500
• Total VRT: €3,850 + €500 = €4,350

The NOx Levy

In addition to the CO2 component of VRT, a separate NOx (nitrogen oxide) emissions charge applies when a vehicle is first registered in Ireland. This was introduced on 1 January 2020 to discourage high-NOx vehicles, particularly older diesels. The NOx levy is a component of VRT — the two are added together to produce the total VRT payable.

Maximum caps: €600 for petrol vehicles; €4,850 for diesel vehicles. If NOx documentation cannot be provided at registration, the maximum flat charge for the fuel type is applied automatically — this means €4,850 for a diesel without paperwork. Always obtain the NOx figure from the V5C (box V3, if issued before April 2019), Certificate of Conformity, or the manufacturer before registration.

Fully electric vehicles produce zero NOx and are exempt from the levy entirely.

Source: Revenue.ie — NOx charge

Electric and Hybrid Vehicles

Battery electric vehicles (BEVs) benefit from VRT relief of up to €5,000. For BEVs with an OMSP up to €40,000, the full €5,000 relief applies. For BEVs with an OMSP between €40,000 and €50,000, the relief is tapered. No relief is available for BEVs with an OMSP above €50,000. This relief has been extended to the end of 2026 (subject to annual Finance Act confirmation). BEVs also pay zero NOx levy and benefit from the lowest motor tax rate of €120 per year.

Plug-in hybrid vehicles (PHEVs) do not qualify for the BEV-specific VRT relief. They are taxed on their CO2 emissions just like petrol and diesel cars. However, because PHEVs typically have low CO2 emissions, they often fall into the lower VRT bands (e.g. 7–9%), resulting in comparatively lower VRT. PHEVs are still subject to the NOx levy based on their nitrogen oxide emissions.

Source: Revenue.ie — Electric vehicles

When You Don't Pay VRT

VRT does not apply in certain circumstances:

• Buying a used car already registered in Ireland: VRT was paid at first registration — no further VRT is due.
• Temporary visitors: A foreign-registered vehicle owned by a non-resident may be used in Ireland for up to 12 months without being registered or paying VRT, provided the vehicle was acquired with all appropriate taxes paid in the home country, is not driven by an Irish resident, and is not sold, hired out, or lent to an Irish resident. No formal application is required for stays under 12 months, but you must carry documents proving non-resident status and vehicle registration in the vehicle. (Revenue.ie — Temporary exemption)
• Transfer of residence (TOR) relief: If you're moving to Ireland permanently, you may qualify for a full VRT exemption on your personal vehicle. To qualify, you must have had your normal residence outside Ireland for at least 185 days per year before moving, have owned and used the vehicle abroad for at least 6 months, and bring it into Ireland within 12 months of your transfer of residence. You must not have been granted the same relief in the previous 5 years. You cannot sell or dispose of the vehicle within 12 months of registration, or the full VRT becomes payable. Apply within 7 days of the vehicle arriving in Ireland — from within the EU, apply via MyEnquiries; from outside the EU, apply at the customs office at your point of arrival. (Revenue.ie — Transfer of residence)
• Vintage vehicles: Cars over 30 years old qualify for a flat VRT rate of €200, regardless of OMSP or emissions. They are also exempt from the NOx levy.

How VRT Affects Used Car Prices in Ireland

VRT is a significant factor in why used cars tend to be more expensive in Ireland than in the UK or mainland Europe. The tax is baked into the price of every car registered here, which sets a floor price that the Irish market operates above.

For buyers, this means:

• Importing from the UK may not always save money once VRT, customs duty (10%), VAT (23%), and NOx are added — these can add 30–40% or more to the UK purchase price
• Low-emission vehicles (electrics, efficient petrols) attract lower VRT, making them comparatively better value
• High-emission vehicles (older diesels, performance cars) can attract very significant VRT charges — a high-emission diesel could face VRT of 35–41% of OMSP plus up to €4,850 in NOx levy

Use the Cars.ie search to compare Irish prices and see what's available without the hassle of importing.

Useful Links

• Revenue — VRT information
• Revenue — VRT calculator
• Revenue — VRT rates and CO2 bands
• Revenue — NOx levy information
• Revenue — Electric vehicle VRT relief
• Revenue — Transfer of residence relief
• Revenue — VRT appeals process
• Revenue — How to use the VRT calculator
• Our guide to importing a car from the UK