Vehicle Registration Tax in Budget 2025
For the most part VRT (Vehicle Registration Tax) remained unchanged in Budget 2025 with some tweaks to VRT rules for low emission and electric commercial vehicles.
Emissions based VRT for Category B Vehicles
VRT Category B generally includes double cab pickups, campervans, car derived vans, suv derived vans and N1 commercial vehicles with a maximum laden weight of less than 3.5 tonnes maximum laden weight and the maximum laden weight is less than 130 per cent of the unladen weight. It is important to note if a commercial vehicle has more than 3 seats then the cargo area and passenger area need to be completely seperate units, e.g. a panel van with 4 seats is category A, not category B whereas a doublecab pickup is category B.
The VRT rate for a category B vehicle is 13.3%, in budget 2025 a new rate of 8% is being introduced for for category B vehicles with CO2 emission of less than 120 grams per kilometre. The goal here is to incentive lower emission commercial vehicles.
From 1 January 2025, VRT will be calculated in reference to the following table:
| CO2 emissions (CO2 g/k) |
Percentage payable of the value of the vehicle |
|---|---|
| 0g/km to 120g/km | 8% |
| Greater than 120g/km | 13.3% |
Amendment of VRT weight ratio for commercial electric vehicles
Until now some commercial electric vehicles did not qualify for VRT category C VRT rate of €200 because maximum laden weight was less than than 130 per cent of the unladen weight. This was due to the weight of the batteries in the vehicle.
From 1 January 2025, the weight ratio for commercial electric vehicles will change from 130% to 125% in order to qualify for the €200 VRT rate.
BIK Relief
While not VRT related this is still a very important announcement.
The BIK reduction of €10,000 applied to Original Market Value applied to all cars in Category A, B, C and D (not E) and all vans has been extended to to 31/12/2025
The BIK reduction of €35,000 applied to Original Market Value applied to all electric vehicles continues to apply.
Therefore BIK reduction in OMV for an electric vehicle continues to be €45,000 into 2025.
In simple terms an electric vehicle with an OMV of less that €45,000 has a BIK of 0 or an electric vehicle with an OMV of €70,000 is treated as a vehicle worth €25,000 from a BIK perspective.
Electric Cars
In Budget 2024, it was announced the VRT relief of €5,000 for Battery Electric Vehicles extended to the end of 2025.
2025 VRT Rates
The VRT rates for passenger vehicles remain unchanged
VRT Rates 2025 based on on WLTP CO2 emissions
| BAND | FROM | TO | VRT Rate |
|---|---|---|---|
| 1 | 0 | 50 | 7.00% |
| 2 | 51 | 80 | 9.00% |
| 3 | 81 | 85 | 9.75% |
| 4 | 86 | 90 | 10.50% |
| 5 | 91 | 95 | 11.25% |
| 6 | 96 | 100 | 12.00% |
| 7 | 101 | 105 | 12.75% |
| 8 | 106 | 110 | 13.50% |
| 9 | 111 | 115 | 15.25% |
| 10 | 116 | 120 | 16.00% |
| 11 | 121 | 125 | 16.75% |
| 12 | 126 | 130 | 17.50% |
| 13 | 131 | 135 | 19.25% |
| 14 | 136 | 140 | 20.00% |
| 15 | 141 | 145 | 21.50% |
| 16 | 146 | 150 | 25.00% |
| 17 | 151 | 155 | 27.50% |
| 18 | 156 | 170 | 30.00% |
| 19 | 171 | 190 | 35.00% |
| 20 | >191 | 41.00% |
Importing a car from UK to Ireland after Brexit
Since Brexit on January 1st 2021 the costs associated with importing a car has changed and in most cases you are now required to pay :
- Customs Duty
- VAT
- VRT
- NOX Levy
Our Import Costs Calculator provides a estimate for all of these taxes in one report.
To generate the report simply provide the UK vehicle registration and the price of the vehicle in the UK.
The importation of a vehicle from the UK is now treated as an import from a non-European Union (EU) country so you are required to complete a customs declaration.
A customs declaration is a complex process requiring customs expertise and specialist software.
If a customer declaration is not completed or the vehicle is not registered within 30 days of its arrival in the State, then it is liable to be seized by the authorities.
