Vehicle Registration Tax (VRT) in Ireland: What Businesses Need to Know

Vehicle Registration Tax (VRT) is charged, in most cases, when a vehicle is registered in the State, so businesses that buy or import vehicles will usually meet it. For a Dublin company buying vans for a delivery fleet, a finance team reviewing company cars (see also our benefit-in-kind guide), or a dealer holding stock, the questions are the same: when does VRT apply, who registers the vehicle, what basis is the tax charged on, and how does it sit alongside VAT? This guide follows Revenue's published VRT pages and Tax and Duty Manuals. It does not give rates or amounts, because these change; check Revenue's VRT calculator and pages on the day.

What VRT is and when it applies

Revenue's VRT and registration page (last updated 10 July 2026) says VRT is charged, in most cases, when a vehicle is registered in the State. A registration number is issued at the same time. Motor vehicles must be registered within 30 days of their date of entry into the State. The exceptions Revenue names are vehicles held by authorised motor traders and foreign-registered vehicles brought in temporarily.

Revenue also says additional VRT is payable if a vehicle is not registered within the 30 days, which usually arises where proof of the date of entry is not produced. Driving an unregistered vehicle is an offence, and Revenue or the Gardaí can detain the vehicle; Revenue can seize it. Full or partial exemptions can apply, for example where someone transfers their residence to the State, and the conditions are in VRT Manual Part 2. Citizens Information (page last updated 23 May 2024) adds that even exempt vehicles must still be registered.

The VRT categories businesses should know

Revenue's page on applying the tax (published 21 July 2026) groups vehicles into categories, and the basis of the charge differs for each. In summary:

• Category A: passenger vehicles such as cars and minibuses, plus certain N1 vehicles with four or more seats. The charge is based on CO2 emissions applied to the vehicle's value, with a separate NOx element added on top.
• Category B: goods vehicles not exceeding 3.5 tonnes, generally with three seats or fewer, and motor caravans. The charge is generally based on CO2 emissions applied to value, although some N1 vans pay a fixed charge if they meet seating and laden-mass conditions.
• Category C: larger commercial vehicles, agricultural tractors, buses and vehicles more than 30 years old at registration. A fixed charge applies.
• Category D: special-purpose vehicles such as ambulances, refuse carts and fire engines. No VRT is payable.
• Category M: motorcycles and e-mopeds, charged by reference to engine capacity.

Revenue's VRT Manual Part 1A (last reviewed August 2026) explains how a vehicle is classified. The EU category on the Certificate of Conformity or previous registration documents drives it, and if the category cannot be confirmed to Revenue's satisfaction the vehicle is deemed to be EU Category M1. For vans, the number of seats and whether the passenger and cargo areas form a single unit decide whether a vehicle is Category A or B, and partitioning a single unit does not make the areas separate. This matters for businesses: a vehicle that looks like a van may be classified as a car for VRT.

Open market selling price (OMSP)

For Category A and most Category B vehicles, VRT is based on the vehicle's value, which Revenue calls the Open Market Selling Price. According to Revenue's page on assessing value (published 9 October 2026), the OMSP is usually slightly different from the invoice value. Vehicles on the VRT calculator have a published OMSP and the calculator gives an estimate only; Revenue calculates the exact VRT when the vehicle is presented for registration. Vehicles not on the calculator receive an OMSP only after presentation, and Revenue staff do not give value or tax estimates beforehand.

Revenue uses market indicators such as trade guides, advertisements and expert input, and the condition and mileage of a used vehicle can affect the value. The calculator cannot be used for unlisted models, models needing special valuation such as motor caravans and classic vehicles, or large commercial vehicles.

Who registers the vehicle

Revenue's general information on registration (published 10 July 2026) says that for a new vehicle bought in the State the motor dealer registers it at the point of sale, pays the VRT and VAT to Revenue and supplies the plates. In all other cases the owner registers at a National Car Testing Service (NCTS) centre, which inspects the vehicle, calculates the tax and issues the registration number after payment. A vehicle can be motor taxed only after successful registration.

For vehicles bought abroad, Revenue's VRT and registration page lists making an appointment with the NCTS within seven days of bringing the vehicle into the State as one of the steps you must take, and says the vehicle must be registered within 30 days of its date of entry. The foreign registration document must be presented; Revenue states that registration will be refused without it. Revenue's VRT and registration page (last updated 10 July 2026) says that from 5 July 2026 buyers of new category M or N vehicles must get the Vehicle Identification Number from the seller, and that these vehicles can still be registered by submitting an e-CoC through ROS until 29 November 2026. The "M" and "N" here are the EU vehicle categories used on that page, not the VRT categories above. Because these dates are transitional, check the current Revenue page before relying on them.

Motor dealers and authorised traders

Under VRT Manual Part 10 (last reviewed June 2026), a person may not hold an unregistered vehicle unless Revenue has authorised them. Revenue lists the kinds of business that may be authorised, including manufacturers, distributors, dealers and traders who repair, store or modify vehicles. The conditions include running the business from premises it occupies, being VAT-registered for that business and holding a current tax clearance certificate. Authorised traders must keep a Revenue-approved stock register, submit stock statements, and report changes to officers, trading address or VAT registration. They are subject to audit. Holding or receiving unregistered vehicles without authorisation is an offence and the vehicles may be liable to forfeiture.

VRT, VAT and company vehicles

Revenue's Tax and Duty Manual on VAT and VRT on transactions involving motor vehicles (last reviewed January 2026) explains that VRT is calculated on the OMSP rather than the actual purchase price, and that whether VRT forms part of the VAT base depends on the transaction. For new, unregistered vehicles sold by an authorised dealer, VAT is generally charged on the amount excluding VRT; for registered vehicles, VAT is charged on the full amount received including any VRT element.

The manual also says VAT-registered businesses can generally deduct VAT on commercial vehicles (VRT Categories B and C), while cars (VRT Category A) are generally not deductible, with exceptions such as stock-in-trade, driving schools and car-hire businesses. It describes treatment for vehicles imported from outside the EU, which are liable to customs duty and VAT when they first enter the EU, and for new means of transport. Our guides to customs and EORI and VAT returns and record keeping cover those areas. Employer tax on vehicles made available to staff is a separate topic, covered in the benefit-in-kind guide linked above.

Reliefs and repayments

Revenue's VRT Manual Part 3 (last reviewed October 2026) covers repayment schemes and reliefs, including relief for vehicles for people with disabilities, an electric vehicle relief (the manual gives an end date, so check whether it still applies), repayments of overpaid VRT to authorised dealers, and an export repayment scheme for qualifying vehicles permanently removed from the State. The manual states conditions for each; this guide does not set them out, so check the manual before assuming a relief applies to a particular vehicle.

A practical approach

These are our suggestions, not Revenue requirements.

• Our suggestion: confirm the VRT category before agreeing a purchase price, especially for vans with more than three seats.
• Our suggestion: ask a dealer in writing what is included in the invoice (VRT, VAT, plates) and keep it with the asset record.
• Our suggestion: when importing, diarise the seven-day and 30-day points from the date of arrival and collect the foreign registration document from the seller.
• Our suggestion: agree who in the finance team owns vehicle purchases, so VAT treatment and company car reporting are checked at the same time.

Learnsignal's offices are off Baggot Street in Dublin, and we offer in-person training from there. For current details, see our CPD pages.

Frequently asked questions

When must a vehicle be registered for VRT?

Revenue says motor vehicles must be registered within 30 days of their date of entry into the State, with exceptions such as vehicles held by authorised motor traders. Additional VRT can apply if registration is late.

Is VRT the same for cars and vans?

No. Revenue groups vehicles into categories, and the basis of the charge differs. Cars are generally Category A and light goods vehicles Category B, while larger commercial vehicles are charged a fixed amount. A van with more than three seats and a single passenger and cargo area may be classified as Category A.

What is OMSP?

It is the Open Market Selling Price, the value Revenue uses for Category A and most Category B vehicles. Revenue says it is usually slightly different from the invoice value and that the calculator gives only an estimate.

Can a business reclaim VAT on vehicles?

Revenue's manual says VAT-registered businesses can generally deduct VAT on commercial vehicles (VRT Categories B and C), while cars are generally not deductible, with listed exceptions. Check the manual for your situation.

Where can I check current VRT rules?

Rates, dates and procedures change. Use Revenue's VRT pages, VRT Manual and calculator on the day, and take advice for complex purchases.

VRT is simple to pay but easy to get wrong on classification and VAT, so check the vehicle and the invoice before you buy.