HELPDESK: Michael McAleeranswers all your motoring enquiries
From Geoff Cooper: I recently purchased a 1992 Volkswagen Caravelle camper van with 124,000 miles on the clock from a man living in the North. Although quite old the vehicle is in almost pristine condition having had one owner from new. The purchase price was £5,000 (€6,285), writes
I recently applied to change the plates to comply with the law. I contacted the VRT office in Sligo and gave details. I also asked how much the VRT would be. I was told that I had to present the vehicle at the government offices in Sligo before a figure could be set. I duly did this. A female employee then photographed the vehicle both inside and out, and took measurements. I again asked how much I would have to pay.
I was informed that before a valuation could be made the relevant information had to be put before a "board". I was told that if the vehicle had a fixed high top the duty would be €50, but seeing as my camper had a lift-up roof I would be charged 36 per cent of the value the "board" put on the vehicle.
I queried the discrepancy, and was told that she didnt know. Several days later I received a phone call telling me that I had to pay €3,240 import duty. I commented that it was legalised extortion on behalf of the government, and asked if I had the right to appeal. I was informed that I had, but only after I had paid the €3,240. I paid the money and have appealed. Is this tax legal in European law?
Your case is similar to many others and raises the arbitrary nature of the valuation process. Admittedly any valuation process is open to interpretation, but the VRT scheme as operated at present has its flaws. At the core of the issue is the very creation of the Open Market Selling Price (OMSP) of a new car imported by a distributor.
Here the distributor meets with Revenue officials and agree a price. This, however, is not the price for which the car will go on sale, but rather a lower one, upon which the car firms add a percentage mark-up. So the actual price of the car is not really the OMSP, but rather that arbitrary figure with additional mark-up and negotiation room added on.
If the OMSP is arbitrary for a new car, you can then see how problems can arise when assessing used cars. Of course the Revenue officials refer to the current market prices for such cars, but that is dependent upon them being aware of the potential current used market price for every make and model of car, along with any additional features that may have been added.
In terms of legality, when we have previously enquired about VRT we have been told that it's not actually a tax on the car - or camper van in your case. That would be against EU legislation. It is, however, a tax on making the car legal on Irish roads, hence the reference to "registration".
The car needs to be registered to go on the road, therefore the VRT has to be paid when it enters the State. It's a punitive tax on the motorist, but it seems to be legal and what's more, with tax revenue falling rapidly, increasingly important for the Government coffers.
From R Egan: As an irregular visitor to Dublin, will I have to pay every time I use the M50 and do I have to register online and get a tag?
There has been plenty of coverage of this issue to date, but just to reiterate, the charge is not for using any part of the M50. It only applies if you drive on the stretch between the Lucan ramps and the Blanchardstown ones. That's the segment where the barriers are at the moment. Driving from Tallaght to the Red Cow, or from Malahide to Finglas, doesn't cost you anything today, and won't cost you anything from next week.
In terms of what is best for you, if you only come up to Dublin once a month and use that section of road twice, then simply register your car for a video account on eflow.ie and that will mean no service charges but a cost of €2.50 every time you pass the sensors.