The Non-Use of Motor Vehicles Act 2013 came into effect on 1 July 2013. The primary purpose of the Act is to replace the system whereby a vehicle was declared off the road retrospectively with a system under which the vehicle must be declared off the road in advance.
The Act provided for a three month transition period from 1 July 2013 to 30 September 2013 to allow vehicle owners to bring their motor tax status up to date by making either or both a retrospective and prospective off-road declaration, as appropriate.
The new arrangements have been fully in force since 1 October 2013. These only allow for a future declaration which must be made in the month before tax falls due. The declaration of non-use can be made at any time during that month, either via the local motor tax office or online, and is free of charge. The declaration cannot be made along with a payment of arrears which is payable only once a full month has elapsed i.e. where a vehicle has been without tax for a full calendar month. The minimum period for which a vehicle licence can be taken out is three months.
As the Non-Use of Motor Vehicles Act 2013 made minimal other changes to the existing taxation system, no changes were made to the duration of vehicle licences, which can be taken out for three, six or twelve months, or to the payment of arrears which are required to be paid in conjunction with the taking out of a vehicle licence, where there is a gap of more than a month between the expiry of the last vehicle licence and the renewal of the next licence.
There was extensive public notice of the Act’s coming into force and widespread awareness-raising of the new arrangements from before the start of the transition period. The measures are aimed at closing an evasion loophole, costing taxpayers approximately €55m per annum, which was facilitated through the use of retrospective declarations. They are also intended to ensure that motorists keep their vehicle status up to date, that is, the vehicle should be either taxed or the subject of a declaration of non-use. This is important both from an enforcement aspect as well as ensuring a consistent flow of income to the Local Government Fund.
