The Revenue Commissioners could be overpaying VRT refunds on written off cars exported out of the State, according to vehicle history check company, Cartell.ie.
In August Cartell.ie reported that 3,284 vehicles had been exported out of the State and of those 556 or 17 per cent had Vehicle Registration Tax (VRT) refunded by the Government.
Refund of VRT for exported vehicles is based on the “VRT Export Repayment Scheme” which allows for the repayment of “residual” VRT on passenger vehicles permanently exported from the State. The scheme commenced in 2013. Among the cars afforded a VRT refund this year were vehicles from manufacturers Ferrari, Lamborghini and Porsche.
Of those vehicles exported, Cartell.ie suspects that 10 vehicles were written-off in Ireland prior to export and refund of residual VRT.
John Byrne, of Cartell.ie, says: “VRT refund is calculated on the basis of the open market selling price of the vehicle at the time of exportation, and, obviously, if the vehicle was written-off in Ireland, that value is significantly impacted. The question that arises is whether the Government is aware the vehicle was written off prior to export. Cartell.ie has been lobbying for introduction of legislation which will obligate Irish insurers to send all their write-off files to the Government. One consequence of that move would be to ensure the Government is not overpaying on VRT refunds for vehicle’s exported out of the State.”