Such cars are also subject to vehicle registration tax (VRT). The other car is used by the wife during the day to do shopping pick up kids etc, so he can't use that for business. Find about more about VRT. The rate of VRT varies between vehicle types and is mainly dependent on the level of CO2 emissions. Prices of Electric Cars in Ireland. In our regular Q&A series from Croner Taxwise, VAT advice consultant, Sally Atkins explores whether VAT is recoverable on the purchase of an electric car, and the input tax implications on usage of a green vehicle, Brought to you by the team of specialist tax advisers. Since May 2018, if you import a vehicle from another EU member state and the vehicle has a current EU Roadworthiness Certificate, you can have the time remaining on the certificate recognised in Ireland. The Irish Times guide to new electric cars for 2020 and 2021 From the Audi e-Tron to Volvo XC40 P8, via Nissan and Tesla, we rate a full 36 models Wed, Jul 1, 2020, 07:00 We can help by computing the allowances available to your business, ensuring that the most advantageous claims are made and by advising on matters such as the timing of purchases and sales of capital assets. SEAI is offering grants of up to €5,000 for a Battery Electric Vehicle (BEV) or a Plug-in Hybrid Electric Vehicle (PHEV) purchased and registered in Ireland. 21% Irish VAT will NOT be charged on used cars (it will on new cars) However – Proof that vehicles were properly imported into Northern Ireland will be required for vehicles first registered in Great Britain and subsequently registered in NI after 1 January 2021. The VAT on petrol and diesel remains at 28 percent. “If the Government really wants to stimulate demand for electric vehicles quickly, then it either has to boost the Plug-in Car Grant or remove, or cut, VAT for a fixed period of time. There is up to €7,000 grant available for the purchase of an electric vehicle for use as a Taxi, Hackney or Limousine. Electric cars are often assumed to cost a lot more than “normal” cars. ; Plug-in hybrid electric on first registration: a hybrid with a battery that can be charged by being plugged in to the electricity grid. Vehicles imported to Ireland from outside the State (including Northern Ireland) must go through the National Car Test (NCT) once the vehicle is 4 years old or more. The VAT can only be recovered on the purchase of the car if there’s no private use at all, and that includes home-to-work journeys. It is a common misconception that VAT is recoverable on the purchase of electric cars per se, due to some perceived underlying environmental or ‘green’ reason. So the usual rules apply - no recovery of input VAT unless 100% business use etc. However, 20% of VAT can be reclaimed on a passenger vehicle that:•    Is used for at least 60% business purposes.•    Was first registered on or after 1 January 2009.•    Has CO2 emissions of less than 156g/km. Industry body the SMMT wants 20% VAT cut as concerns grow that majority of car-buying public aren't ready to switch to an electric car Authorised by the Institute of Chartered Accountants in Ireland. It lands in Ireland in plenty of time for the start of 2021 registrations and is about the same size as a Golf. The VAT bill for a car bought for £8,000 and sold for £10,000 could rise from £333 to £1666. Volkswagen ID.3. Electric company car drivers are to get a tax break under new measures announced this afternoon by the Minister for Finance. You may be able to reclaim all the VAT on a new car if you use it only for business.. By John L’Estrange. VRT relief for BEVs is in place until the end of 2021 and for PHEVs until end of 2020. Everything you need to know about our electric vehicle grants; their value, how to apply, and additional incentives to help get you plugged in. Some Jeeps will qualify as a commercial vehicle for VAT (although they will not meet the definition of a van for BIK purposes).Generally, VAT cannot be reclaimed on passenger vehicles. Carzone recently issued their 2018 Motoring report which highlighted that almost two thirds of car buyers in Ireland are now considering purchasing an electric or hybrid vehicle in the near future. New Electric Ireland – Breathing New Life into Old Cars. It’s expected to be phenomenally successful. VAT. Electric and alternative fuel vehicles qualify for accelerated capital allowances of 100% in the year they are purchased. 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