I am informed by the Revenue Commissioners that the export repayment scheme is provided for in section 135D, Finance Act 1992 and was commenced on 8 April 2013.
It is first of all necessary to look at the background to the scheme. In 2010 the European Commission initiated infringement proceedings against Ireland on the basis that "the effect of the Irish provisions relating to Vehicle Registration Tax is a disproportionate obstacle to the freedom to provide services for leasing companies in other Member States who wish to offer their services to Irish residents." The Commission's case was that by charging VRT on the full value of a vehicle leased to an Irish citizen by a foreign leasing company the vehicle then has a residual, "trapped" VRT element that makes them less competitive for subsequent leasing outside of the State on completion of the original lease term. Following a careful analysis, the export repayment scheme was provided for in the 2012 Finance Act to address the particular concern in relation to freedom of services for leasing companies. In line with the proceedings initiated the scheme is for passenger vehicles and is open to both members of the motor trade and private individuals.
In relation to the specific case, I am informed by the Revenue Commissioners that a number of vehicle models straddle both categories M1 (passenger) and N1 (commercial). It is common to have a vehicle make, model and version that, because of the final specification, could have an M1 categorisation or an N1 categorisation. Notwithstanding this, it should be clear from the documentation and the vehicle that it is a category N1 and does not qualify under the scheme. I am informed by the Revenue Commissioners that they have arranged to have the examination fee refunded in this case. I am also informed by the Revenue Commissioners that the administration charge (the €500 mentioned in the details supplied) applies only to cases where a vehicle has gone through the export repayment scheme and a repayment is due. It does not apply to exports of vehicles outside of the scheme.
