Are EV VRT Reliefs Ending Soon?

For years, the VRT relief of up to €5,000 has been a cornerstone of Ireland's electric vehicle adoption strategy. But as EV sales stabilize, the government is signalling a shift.

The Current Relief (2026)

As of today, fully electric vehicles (BEVs) are eligible for VRT relief based on their Open Market Selling Price (OMSP):

• Up to €40,000 OMSP: Full €5,000 relief. (VRT is often €0).
• €40,000 - €50,000 OMSP: Tapered relief. The €5,000 reduces gradually as the price increases.
• Over €50,000 OMSP: No relief. You pay the full 7% VRT rate.

The Tapering Trap

Many buyers get caught out by the "taper". If your EV lists at €45,000, you don't get €5,000 off. You get approx €2,500 off. This significantly changes the "Drive Away" price.

"The days of boundless incentives are over. Buyers must calculate the exact relief for their specific model or risk a shock at registration."

What's Changing?

The Department of Finance has indicated that VRT reliefs are not permanent. The success of EV sales means tax revenue from motor fuel is declining. To plug this gap, VRT reliefs are expected to be phased out entirely by 2027/2028.

Timeline of Reduction

• 2024-2025: Reduced relief for cars over €40k.
• 2026 (Now): Relief cap remains at €5,000 but stricter OMSP scrutiny.
• Future Outlook: Expect the €40,000 threshold to drop to €35,000 in the next budget.

Should You Buy Now?

If you are considering an electric vehicle, particularly one in the €35k-€45k price bracket, acting sooner rather than later locks in the current relief structure. Waiting until late 2026 carries the risk of policy changes in Budget 2027.