The Irish government has announced updates to the Vehicle Registration Tax (VRT) system for 2025, especially benefiting electric and low-emission vehicles. This article covers all the latest changes, new VRT rates, benefit-in-kind reliefs, and what importers need to know post-Brexit
From 1 January, 2025 we are seeing that there is some little bit changes in Vehicle Registration Tax along with the RSA Fees. The 2025 Budget provides relief to low emissions and electric commercial vehicles.
While for other category vehicles the process is same which you can calculate VRT. Like From 1 January 2025, the weight ratio for commercial electric vehicles will change from 130% to 125% in order to qualify for the €200 VRT rate.
Many changes have occurred in VRT costs in Ireland and along with new VRT rates, if you want to calculate it use our free Vehicle Registration Tax Calculator.
Now these changes include:
- Reduce Rates for Category B Vehicles
- Same Decreasing rates for Electric Commercial Vehicles.
- Extension of BIK Relief
- Extended VRT amount for Electric Cars
1. Reduce Rates for Category B Vehicles:
If you are new to it and don’t know what vehicles are in the Category so just to tell you. Category B vehicles include SUV derived vans, campervans, double cab pickups, campervans, car derived vans and N1 commercial vehicles which have weight under 3.5 tonnes.
The new rates are Effecting from January 1, 2025, which are:
| CO2 Emissions (g/km) | VRT Rate |
|---|---|
| 0g/km to 120g/km | 8% |
| Greater than 120g/km | 13.3% |
Irish Government wants to encourage lower emission commercial vehicles and encourage businesses to buy environmentally friendly vehicles. When most people will buy these type of Vehicles which produce less NOx emission so the environment will get more saffer. This is the main aim of the Ireland Government.
2. Lower VRT Rates for Electric Commercial Vehicles:
In Ireland, Commercial Electric Vehicles are going to change in Category C but they failed due to weight restrictions. If they move to it they also pay the fixed rate of €200. There is no tax on category D vehicle in Ireland so if your vehicle is in category D you dont need to pay VRT.
The main issue is that battery weight makes these vehicles exceed limits and the rule required a laden weight of at least 130% of the unladen weight. Now From January 1, 2025, the weight requirement will decrease from 130% to 125%. This allows more electric vans to qualify to benefit from the €200 VRT rate.
3. BIK Relief Extension for Electric Vehicles:
| Category | BIK Reduction |
|---|---|
| OMV Reduction (All Vehicles) | €10,000 reduction for Category A, B, C, D vehicles and all vans until December 31, 2025. |
| Electric Vehicles (EVs) | €35,000 BIK reduction remains unchanged. |
| Example for EVs | EV with OMV < €45,000: 0% BIK EV with OMV of €70,000: BIK calculated on €25,000. |
4. VRT Rates Relief for BEVs:
There is seen a VRT relief of €5,000 on Battery Electric Vehicles (BEVs) which has been extended through December 31, 2025. This is happening in Ireland because the Government promote electric vehicle adoption.
Now the main aim to reduce the price for Electric Vehicles to encourage people to buy more EVs as compare to other fuel Type of motors. Because Electric Vehicles did not produce NOx emissions and there is no such problem of Environmental damage.
Importing Vehicles from the UK Post Brexit:
From 1 January, 2021 the vehicles which are importing from UK to Ireland, will pay some more charges and the cause behind it is Brexit. Buyers must now pay:
- Customs Duty
- VAT
- VRT
- NOX Levy
To calculate accurate estimations used Import Cost Calculator which will help you more. Vehicles which are imported from the UK are known as non-EU imports and they have customs declaration. If a customs declaration is not completed within 30 days of arrival, the vehicle may be seized by authorities.
More Changes in Budget 2025:
| Category | Tax Change |
|---|---|
| Income Tax Adjustments |
Standard Rate Cut-Off Point: €42,000 → €44,000 Main tax credits: +€125 to €2,000 |
| Additional Tax Credits |
Home Carer: €1,950 (+€150) Single Child Carer: €1,900 (+€150) Incapacitated Child: €3,800 (+€300) Dependent Relative: €305 (+€60) Blind Person: €1,950 (+€300) |
| USC Adjustments |
4% USC → 3% USC threshold: €27,382 |
| Rent Tax Credit | €1,000 (individuals), €2,000 (joint) |
| BIK Exemption | BEV home chargers (from Jan 1, 2025) |
Frequently Asked Questions
1. What are the new VRT rates for Category B vehicles in 2025?
From January 2025, if your commercial vehicle (like vans or pickups) falls under Category B, you’ll pay:
- 8% VRT for CO₂ emissions up to 120g/km
- 13.3% VRT if emissions go above 120g/km
2. What’s the updated rule for electric commercial vehicles to get the €200 VRT rate?
Now, electric vans only need a 125% weight ratio (laden vs. unladen) instead of 130% to qualify for the €200 VRT. This change helps more electric vans save money.
3. What BIK (Benefit-in-Kind) reliefs do electric cars get in 2025?
In 2025, you can reduce the car’s taxable value by:
- €10,000 for all vehicle types
- €35,000 if it’s fully electric
This lowers how much tax you pay on company cars.
4. What taxes apply when I import a car from the UK?
When you bring a UK car to Ireland, you’ll need to pay:
- Customs Duty
- VAT
- VRT
- NOx Levy
Also, file a customs form within 30 days to avoid trouble.
Conclusion:
In conclusion, while major VRT changes apply mainly to electric and Category B vehicles, most standard categories remain unchanged in 2025. The aim of this budget is to provide a safe environment to Irish people. It cause increasing in demand of eco friendly transportation. This article summarizes key points based on public information from Revenue.ie and official Budget 2025 announcements
Along with this there is some changes is seen in Ireland related to Road Safety Authority (RSA) they also changes fee increases for some services, including a driving license which is now costing €65 (previously €55), a learner permit at €45 (previously €35), and a full NCT test at €60 (previously €55).