The business owner's manual for vehicle taxation. Master the intersection of Registration Tax (VRT) and Benefit-in-Kind (BIK) for a tax-efficient 2026 fleet.
Verified by VRT Calculator Ireland Research Team
Irish Tax & Import Experts | Updated Feb 2026
Yes, company cars pay VRT at the same rates as private vehicles. VRT is based on the Open Market Selling Price (OMSP) and CO₂ emissions. While VRT is a once-off registration tax, it directly impacts the Benefit-in-Kind (BIK) calculation, as BIK is derived from the OMSP. Lower VRT often means a lower OMSP, which reduces the employee's BIK liability.
Based on official Revenue.ie VRT rates and valuation methods.
For VRT purposes, company cars are treated the same as privately owned cars. The difference for businesses appears later via Benefit-in-Kind (BIK) rules, which determine the taxable value of any private use of a company car by an employee or director. BIK does not alter the VRT due at registration.
The following are illustrative examples using simplified assumptions. Actual rates, reliefs and OMSP are determined by Revenue at the time of registration.
Note: Post-Brexit, customs/VAT may also apply when importing from Great Britain — these are separate from VRT and depend on origin and import documentation. EV reliefs are time-limited and subject to caps/thresholds; always check current Revenue guidance at registration.
Estimate the Benefit-in-Kind tax using Revenue's 2026 A1-E bands.
Open calculator →No. Company cars follow the same VRT rules as private cars. VRT is based on Revenue's OMSP and the WLTP CO₂ band. BIK is separate.
VRT is generally not reclaimable. It becomes part of the vehicle's cost. Discuss capital allowances and treatment with your accountant.
BIK does not change VRT. It applies after registration to assess the value of any personal use by an employee or director.
EVs may qualify for VRT reliefs subject to caps and current policy. Always confirm latest Revenue guidance before registering.
Often, yes. Customs/VAT can arise on import from Great Britain, and VRT is payable on registration. Each is assessed under separate rules.
Book an NCTS VRT appointment and bring ID, company details, vehicle documents (V5C/CoC/invoice), customs evidence if relevant, and payment.
VIN, make/model/trim, WLTP CO₂ figure, first registration date, mileage, and purchase invoice help Revenue determine OMSP and the correct band.
Yes. If an employee makes a contribution towards the running costs (like fuel or insurance), it can be deducted from the taxable benefit amount before BIK is calculated, lowering their tax bill.
A pooled vehicle is shared by employees and NOT kept at an employee's home overnight. These are exempt from BIK entirely, but Revenue has strict rules—it must be used by multiple employees and private use must be strictly forbidden.
VRT is added to the value of the import. However, for BIK purposes, Revenue uses the OMSP (Irish Retail Price). If a car is imported cheaply from the UK, the BIK is still calculated based on what that car would sell for in an Irish dealership, not the cheap UK purchase price.
No, VRT is not refundable upon resale within Ireland. However, if the car is permanently exported, you may be able to claim a partial refund via the Export Repayment Scheme.
Generally no. VRT is based on the vehicle classification (e.g., passenger vs. commercial). Signwriting doesn't change a car (Cat A) into a commercial vehicle (Cat B/C) unless significant structural changes are also made.