Vehicle Registration Tax catches out more dealers than any other import cost. You’ve done your sums on auction price and freight, but then VRT hits harder than expected and suddenly your margin’s gone.

Here’s everything you need to know about VRT calculations, emissions impact, and how to select vehicles that protect your bottom line. More importantly, this isn’t theory, t’s the practical knowledge you need to build a profitable import operation.

What VRT Really Means for Your Business

Every vehicle registered in Ireland must have VRT paid within 30 days of arrival, unless it’s held in an authorised trader’s stock. For most used imports, VRT is due before you can sell.

The critical point: VRT isn’t based on what you paid at auction. It’s calculated as a function of vehicle emissions and the Open Market Selling Price (OMSP) – what Revenue believes the vehicle would sell for in Ireland. Revenue determines this value based on model, variant, mileage, condition, optional extras and current Irish market listings.

Get this wrong, and you’re either absorbing unexpected costs or cutting your resale price to stay competitive. In either case, neither option builds a sustainable business.

How VRT Is Calculated

The formula is straightforward:

OMSP x CO₂ VRT rate + NOₓ levy = Total VRT due

To make this clearer, let’s break down each component:

OMSP (Open Market Selling Price):
Revenue publishes OMSP values through their online calculator. If your vehicle isn’t listed, Revenue will determine its OMSP only after it’s presented for registration, using researched market data and comparison methodologies. You have no control over this figure – you can only estimate using Revenue’s official tools. See Revenue’s official internal guideline on calculating OMSP here for more detail, particularly section 3, ‘Valuation of Used Vehicles’.

VRT Calculator Access: Revenue Online Services

CO₂-based VRT rate:

Since January 2021, Revenue uses WLTP emissions values. The 2024 rates are unchanged from 2022. Here are the current bands for Category A passenger vehicles:

Source: Revenue – CO₂ Rates

Understanding the NOₓ Levy: What Dealers Truly Need to Know

This is a component that often surprises dealers and can significantly impact your vehicle’s profitability. The NOₓ levy applies to all Category A vehicles except fully electric models, calculated using a three-tier system that’s worth understanding properly.

Source: Revenue – Calculating NOₓ Charge

Here’s how it works in practice: A diesel with 95mg/km NOₓ emissions would be charged:

• First 40mg: 40 × €5 = €200
• Next 40mg: 40 × €15 = €600
• Remaining 15mg: 15 × €25 = €375
• Total NOₓ levy: €1,175

The documentation trap: If you can’t provide satisfactory NOₓ emissions evidence at registration, Revenue assigns a maximum/flat NOₓ charge:

• Diesel vehicles: €4,850
• All other vehicles: €600

Source: Revenue – Nitrogen Oxide Emissions

A diesel SUV without proper NOₓ documentation can trigger that €4,850 charge, which can significantly reduce your profit margin. This makes pre-purchase documentation verification absolutely essential.

Vehicle Type Affects VRT Structure

VRT applies differently depending on vehicle category. Most retail dealers will deal with Category A and Category B vehicles.

• Category A (passenger vehicles): As covered earlier in this guide, these are taxed based on CO₂ emissions plus a NOₓ component.
• Category B (car-derived vans): Taxed at a flat 13.3 percent of OMSP, with a minimum of €125.
• Category C (goods vehicles): Flat rate of €200.
• Category D (special purpose vehicles): Often exempt.

These categories show how VRT rules vary by vehicle type. For dealers, the key is not to memorise every rate but to recognise that different categories carry very different tax treatments. Confirming a vehicle’s correct classification before bidding helps avoid surprises and ensures your profit calculations remain accurate.

Source: Revenue – Vehicle Categories

A Practical Example

Let’s compare two vehicles with identical €18,000 OMSP:

In this example, the plug-in hybrid reduces the VRT bill by €2,630 compared to the higher-emission petrol model, giving you a direct boost in margin and more room to adjust pricing.

AppeaLs

Revenue has given a very clear procedure to Appeal the VRT in case you’re not satisfied with their calculation of VRT. We would encourage dealers to make use of this, particularly where maximum levies have been applied for lack of evidence for example or the OMSP was determined as a much higher price point that you believe.

You can also find their detailed process guide for appeals here.

VRT Relief for Electric Vehicles

Battery Electric Vehicles qualify for VRT relief if registered on or before 31 December 2025. Full relief applies where the OMSP is up to €40,000, partial relief applies between €40,001 and €50,000, and no relief is available above €50,000. In practice, this means a used EV imported from Japan with an OMSP of €37,000 would attract no VRT at all, giving dealers a strong margin advantage while demand for EVs continues to grow.

However, from 1st January 2026, this relief no longer applies.

Source: Revenue – EV Relief

Strategic Approach for Profitable Importing

Before bidding, always run the numbers through Revenue’s VRT calculator to estimate total tax liability, confirm that full CO2 and NOₓ documentation is available, and build VRT into your maximum bid price. When selecting stock, focus on vehicles with lower CO₂ and NOₓ emissions, take advantage of EV relief while it remains in place until the end of 2025, and ensure every vehicle comes with a complete documentation package. Diesel vehicles without confirmed NOₓ data require extra caution, as the tax outcome can vary significantly. 

The Bottom Line

VRT is not just a registration cost. It is a major factor in vehicle profitability. The difference between a high emission diesel and a low emission hybrid can amount to thousands of euros in tax liability. By understanding Revenue’s structure and planning around vehicles that attract lower taxes, dealers can reduce risk and protect margins.

In practice, smart importers calculate VRT before bidding, use Revenue’s official tools, focus on low emission or relief eligible vehicles, and ensure documentation is complete. As a result, VRT shifts from being an unexpected cost to becoming a competitive advantage.

For dealers seeking additional support, or considering in becoming a Nichibo dealer, our team can provide guidance with sourcing, inspection, logistics, and planning insights. This way, you can build a more profitable import operation with confidence.