Finance Act 1992 section 135B

Repayment of amounts in respect of vehicle registration tax in certain cases

Section 135B sets out the process for repaying overpaid vehicle registration tax (VRT), including how the repayment amount is calculated where the vehicle has changed hands and the obligations on authorised persons to pass repayments on to the registered owner.

• Where an authorised person has overpaid VRT, they may claim a repayment plus any interest, but must pass the full amount on to the person who was the registered owner at the time of registration.
• If the first registered owner still holds the vehicle, the repayment equals the full overpaid amount; if the vehicle has been sold on, the repayment is reduced by a formula that reflects the proportion of value recovered on disposal.
• The authorised person may deduct up to 10 per cent of the repayment to cover the costs of processing the claim, and the first registered owner must provide documentary proof of disposal and the price received.
• If the authorised person fails to pay the first registered owner within 30 days of receiving the repayment from the Revenue Commissioners, the unpaid amount is treated as VRT due by the authorised person from that point onwards.