Section 135(1)(b)(i), Finance Act 1992 provides for temporary exemption from registration for a vehicle brought into the State by an individual established in the State and for their private or business use. The individual concerned must be employed by an employer established in another Member State who provides the vehicle as part of a contract of employment, and the vehicle must be owned or leased by the employer. In addition, the vehicle must be a passenger car (VRT tax "Category A" vehicle) or a motor cycle and it must be used principally for business use in another Member State.
In relation to commercial vehicles (VRT tax "Category B and C"), the rules are that they may be driven or used by a person established in the State as long as they are being used for business purposes related to the person established outside of the State.
General information on exemptions is contained on the Revenue Commissioners' website at: http://www.revenue.ie/en/tax/vrt/faqs-vrt.html#question78 and more specific information is available at:
http://www.revenue.ie/en/tax/vrt/leaflets/temporary-exemption-foreign-registered.html. Application forms for temporary exemption are available from any Revenue Office.
Section 121 of the Taxes Consolidation Act 1997 provides that where a company car is made available for the private use of an employee then the employee is chargeable to PAYE, PRSI and USC on the benefit-in-kind, (BIK) determined by reference to the cash equivalent value of the private use of that vehicle. The cash equivalent value in respect of a car is determined based on 30% of the original market value of that car, with the charge reduced on a tapering scale where business mileage is between 24,000 and 48,000 kilometres per annum.
There is no charge to tax if the car is in a 'car pool'; that is, the car is in use by more than one employee and is not used by one employee to the exclusion of others, private use is incidental to business use, and the car is not normally kept at the home of any of the employees.
Section 121A of the Taxes Consolidation Act 1997 provides that, subject to certain exemptions, where a company van is made available for the private use of an employee then the employee is chargeable to PAYE, PRSI and USC on BIK by reference to the cash equivalent value of the private use of such a vehicle. The cash equivalent value in respect of a van is determined based on 5% of the original market value of that van.
A van will be exempted from the benefit-in-kind charge where:
- The van is necessary for the performance of the duties of the employee's employment;
- The employee is required to keep the van at his or her private residence when not in use; and
- Private use is prohibited and the employee spends at least 80% of his or her time away from his or her work premises.
Therefore, an individual liable to tax in the State would be charged BIK on a vehicle provided by his or her employer in accordance with the foregoing regardless of the origin of the vehicle.
Further information in relation to benefit-in-kind in respect of cars and vans may be found on the Revenue website at