New rules regarding VRT on N1 (commercial vehicles) with 4 or more seats.

New rules regarding VRT on N1 (commercial vehicles) with 4 or more seats.

From 31st July 2018, vehicles with 4 or more seats and in which the passenger and cargo compartments are contained within a single unit, i.e. with one continuous floor or roof panel, will be charged in the VRT Category A rate.

N1 vehicles are commercial vehicles which are designed and constructed for the carriage of goods and whose gross weight does not exceed 3.5 tonnes.

The Category A rate also applies to EU Category M1 (passenger vehicles, vehicles with 9 seats or less including the driver’s seat).

The rate of VRT applicable is based on the CO2 emissions which can range from 14% to 36% of the open market selling price, the higher the emissions, the greater the percentage of VRT due. The table below shows VRT rates based on CO2 emissions, a vehicle with CO2 emissions of 127g/km will be charged at 18% of open market selling price or a minimum VRT of €360, whereas a vehicle with a CO2 emission of 205g/km will be charged at 36% of the open market selling or a minimum of €720.

Vehicle with 4 or more seats and have the passenger and cargo compartment in separate units will be charged at a rate of 13.3% and are VRT Category B, examples of which are pick-ups, tippers, recovery and similar designed vehicles.

Revenue will not apply the Category B rate where a partition is installed in a vehicle with one single compartment.

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