See all Motoring AdviceWhile the majority of car buyers in Ireland will motor tax based upon a vehicle's emissions, there are a different set of rules that apply to commercial vehicles. The Category A emissions-based system has been in place since 2008, with a new 16-category system introduced at the start of 2021, but light commercial vehicles use a different system. This sees vehicles up to 3,000kg (three tonnes) pay a flat rate of €333, with those between 3,001-4,000kg paying €420 a year.
Category B vehicles have three seats or less usually, but if they do have more than three seats, then there must be a distinct separation between the passenger and cargo areas. There's a maximum weight limit of 3.5 tonnes, too, otherwise the commercial vehicle falls into Category C.
From these definitions, Category B is clearly the class for small, medium and large panel vans, while pickup trucks also qualify. However, things become complicated when it comes to crew vans. According to Irish Tax and Customs, there are distinct guidelines by which these van-based models are classified.
If a vehicle has more than three seats and the passenger and cargo areas are located 'under one roof', then this will be classified as a Category A vehicle. If there's a partition between the passenger and cargo areas, this isn't a 'distinct separation', since the 'under one roof' rule cancels this out.
It means that the only crew vans that qualify for Category B will be chassis crew cabs that can have bespoke rear bodywork added. It also means that those models based on one-box panel vans are liable to the emissions-based taxation system, and will have rates that are far higher than the €333 paid by goods vehicles.
If you buy an electric commercial vehicle, then there is a cheaper tax rate of €92 a year. However, the big caveat here is that an electric van must weigh no more than 1,500kg, which is less than the kerb weight of most of the small electric vans for sale in Ireland.
If you're planning on using a commercial vehicle as private transport, then be aware that you're likely to face some Benefit-in-Kind (BiK) taxation on it. Using a commercial vehicle to travel to and from work without any private use means that there should be no BiK to pay. But if you do use the vehicle privately, then the tax man will expect you to stump up - and that's a conversation to be had between you and your accountant as to how much you pay. Since January 2023 the rate is eight per cent of the vehicle’s Original Market Value (OMV).
It's a similar story with electric commercial vehicles, although there is more leeway for an EV to be used privately, as long as it doesn't have an OMV of more than €50,000.
Making private use of a commercial vehicle won't be right for everyone, but if you can make it work, then remember that you must sort out insurance first. However, it's not easy to arrange cover on a commercial vehicle for private use, so we suggest talking to a specialist broker first. This is especially important since you need proof of insurance before you can apply for tax.
When taxing a light commercial vehicle for the first time, after a change of ownership or due to a change in taxation class, you’ll need to fill in form RF111A, the ‘Goods Only Declaration Form’. This must be completed at a Garda station. Other documents you will need include a Certificate of Roadworthiness for vehicles over 12 months old and your motor insurance certificate confirming that you are covered for business use. All this documentation must be sent to your local Motor Tax Office with your payment. Once your first payment is made, you will receive a reminder in the post about renewing your tax before it lapses.