Dáil Éireann díospóireacht -
Wednesday, 26 Nov 1997

Vol. 483 No. 4

Written Answers. - Motor Vehicle Taxation.

Róisín Shortall

Ceist:

94 Ms Shortall asked the Minister for Finance if he will agree to waive the payment of vehicle registration tax, VAT and all other relevant taxation on the importation of a motor vehicle where the vehicle is for personal use and has been acquired by an individual as a result of taking part in a sporting competition and where the vehicle is all or part of the prize awarded for successful achievement in a competition in order to avoid imposing a penalty on the successful individual in view of the small number of instances involved; and if he will make a statement on the matter. [20791/97]

Minister for Finance (Mr. McCreevy)

The Finance Act, 1992 sets out the statutory requirement for the payment of vehicle registration tax on motor vehicles, whether new or secondhand, brought into the State. All such vehicles are subject to the payment of VRT, except in circumstances where relief is specifically provided for, e.g. in the case of vehicles for use by disabled persons, at the appropriate rates set out in that Act, as amended. The method of acquisition of the vehicle is not a determinant for the purposes of the payment of VRT.

As regards VAT, the position is as follows. There is a special EU regime for the application of VAT to motor vehicles. In order to protect the Exchequer interests of member states, the VAT on new motor vehicles applies in the member state in which the vehicles are intended for use. A new vehicle is defined in EU VAT law as one which is less than six months old or has travelled less than 6,000 kilometres. Such a vehicle which is moved from one member state to a second by a private individual for his or her use, is normally liable to VAT in the latter state and, in any event, must be subject to VAT in one of them. Such a car may not be relieved of VAT on the grounds that it has been won in a competition. The collection of VAT is a matter for the Revenue Commissioners. If the Deputy has a specific case in mind she should ask the person concerned to contact the Revenue Commissioners.