Introduction
There are certain circumstances in which a person coming from abroad to take up residence in Ireland may obtain relief from VRT in respect of a motor vehicle brought from abroad as his/her personal property. It also covers import charges (i.e. Customs duty and VAT) in the case of a transfer from outside the European Union. Please note since Brexit the UK is now outside the EU so the relief covers customs duty, VAT and VRT.
In order to qualify for relief, certain requirements must be met in regard to:
- residency, both here and abroad and
- the motor vehicle in respect of which relief is claimed.
How do I apply for a Transfer of Residence Exemption?
You can apply for a transfer of residence exemption yourself or you can hire professionals with expertise to do it for you. We recommend CustomsDeclaration.ie
What are the Residency Requirements?
For VRT purposes, you must have had your normal residence as defined below, outside
the State at the time of transfer.
Normal Residence means:
- the place where you usually lived, for at least 185 days in the year ending on the date of transfer, because of occupational and personal ties
- if you had no occupational ties, the place where you usually lived for at least 185 days in the year ending on the date of transfer, because of personal ties
- if your occupational ties were in a different country from your personal ties then the country of your personal ties is taken as your normal residence if you returned there regularly (i.e. for most of your non-working days).
You do not qualify for relief from VRT
- if you went to live abroad primarily for the purpose of pursuing a course of studies
- if you were working abroad on a task of duration of less than one year
- if you were working abroad on a task of duration of more than one year and you have been granted tax relief in respect of another vehicle in the previous 5 years.
What are the requirements relating to the Motor Vehicle?
The following requirements apply to the vehicle:
- it must be your personal property
- it must have been acquired with all the appropriate local taxes paid and these must not have been exempted, or refunded in any way.
- you must have had possession of and have actually used the vehicle outside the State for at least 6 months before your transfer to Ireland. In the case of relief from import charges, you must have used the vehicle at your former normal place of residence. Any possession and use in the State, even during times when you were living abroad, does not count
- you must bring the vehicle into the State within 12 months of the date of your transfer of residence.
Is proof of residence required?
Yes. You will be required to produce sufficient evidence to show that you have been living abroad for the required length of time. You will also be required to show that you are taking up residence in the State. The evidence required includes documents relating to:
- the acquisition and disposal of property abroad and in the State (e.g.
rent agreements, mortgage documents, rent/mortgage payments etc.) - employment abroad and in the State (e.g. payslips, tax records, social welfare records etc.)
- other transactions carried out in the course of day to day living (bank
statements/transaction documents, bills/receipts for electricity, phone, service charges and other day to day living expenses) - travel records connected with trips into and out of the State
- other such evidence as requested in individual cases.
Remember the onus is on you to prove that you were resident abroad for the required period. If the necessary documentary evidence is not furnished, tax relief cannot be granted. Therefore it may be prudent to hire professionals with expertise to do it for you such as CustomsDeclaration.ie
What evidence is required in respect of the Vehicle?
You are required to prove that you had possession of and actually used the vehicle abroad for at least 6 months before transfer and that the appropriate local taxes have been paid and not refunded. This proof will usually consist of:
- the vehicle registration document
- the certificate of insurance
- the sales invoice, receipt of purchase or other similar document
- evidence of the date on which the vehicle was brought into the State (e.g.
sailing ticket)
You will also be required to produce evidence of use of the vehicle abroad. This evidence will consist of, for example:
- service and maintenance records
- fuel receipts
- documentation that indicates that annual circulation and registration taxes have been paid etc.
- such evidence as may be requested in individual cases.
Are there restrictions on the sale or disposal of a Vehicle which has been granted Tax Relief?
Yes. You may not sell, dispose of, hire out or lend the vehicle during the 12 months following the date of registration. If you do, the VRT (Customs Duty and VAT if appropriate) must be paid in full.
Where and when do I apply?
You can apply for a transfer of residence exemption yourself or you can hire professionals with expertise to do it for you. We recommend CustomsDeclaration.ie
If you are transferring residence from within the EU, an application must be submitted to revenue within seven days of the vehicle arriving in the State.
If you are transferring residence from outside the EU, you must lodge your application when importing the vehicle at the Customs Office at the point of arrival in the State.
Where do I Register?
Once you have been granted an exemption you then need to register your vehicle.
Please read VRT Registration Process
