Proportionate payment of VRT on leased vehicles
Retention of the vehicle
Where a vehicle:
- exits a lease agreement early and is retained in the State
- or
- remains in the State permanently beyond the lease date
the balance of Vehicle Registration Tax plus interest is due at the time the event occurs.
- Example
Early exit from scheme and vehicle remaining in the State
| Max VRT = €10,000 |
Vehicle Registration Tax (VRT) normally due. |
|
VRT paid to date = €2,100.
Balance of VRT due = €7,900
|
The lease in this example is for 12 months from 14 September 2019 to 13 August 2020. The VRT paid to date on this car is €2,100 (€10,000 * 21% [the rate applicable for 12 months]).
The lease is being terminated on 13 March 2020 = 182 days (14 September 2019 to 13 March inclusive).
|
| €7,900 * 0.0274% * 182 days = €393 |
A daily rate of interest is charged on the additional amount that should have been paid when the car was first registered. The interest due is applied to the balance of VRT that would have paid when the car was registered. In this case, that is 182 days. |
| Total amount payable = €8,293 |
This is the total amount of VRT and interest payable when exiting the proportionate payment scheme early. |
Requests to retain a vehicle may be made by calling the following numbers:
- 01 8589150
- 01 8589151
- or
- 01 8589186.
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