By Barlo Motors ThurlesDec 19, 2018

VAT & VRT free DD1 cars in Ireland, what you need to know:

Here at Barlo Motors in Thurles, my two Sales Consultants, Colin & Paul, are fully conversant in the rules and requirements for the purchase of DD1 Mobility vehicles. Below is some helpful information that may just assist you with your new car purchase.

There are some major benefits that you may be unaware of. Road tax is free to you on the scheme. You are also exempt from toll chargesin Ireland and can either apply to one of the toll road operators for a pass or simply stop at the booth each time and show them your disability tax disc. Next, were you aware that you can also claim a portion of the duty back on the fuel used by either the driver or for the disabled passenger?

Although quite a read, I have below some detailed information taken from the Revenue website:


Free Motorway TollsThe Disabled Drivers and Disabled Passengers Scheme provides a range of tax reliefs linked to the purchase and use of specially constructed or adapted vehicles by drivers and passengers with a disability. The rules of the scheme are set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 (SI 353/1994) as amended. Under the scheme, you can claim:

  •         Remission or repayment of vehicle registration tax (VRT)
  •         Repayment of value-added tax (VAT) on the purchase of a vehicle
  •         Repayment of VAT on the cost of adapting a vehicle.

If you qualify for the scheme, you may get some additional exemptions and benefits including:

  •        An exemption from motor tax on the vehicle. Contact your Motor Tax Office to apply for this, see ‘How to apply’ below.
  •         An exemption from toll road fees, see ‘How to apply’ below.
  •         The fuel grant see, ‘Rates’ below.


The qualifying person:

To qualify for tax relief under the scheme, the person with a disability must have a valid Primary Medical Certificate. A Primary Medical Certificate confirms you are severely and permanently disabled and:

  •         Are completely or almost completely without the use of both legs or
  •         Are completely without the use of one of your legs and almost completely without the use of the other leg to the extent that you are severely restricted as regards movement in your legs or
  •         Are without both hands or both arms orMobility Ireland
  •         Are without one or both legs or
  •         Are completely or almost completely without the use of both hands or arms and completely or almost completely without the use of one leg or
  •         Have the medical condition of dwarfism and serious difficulties of movement of the legs

Local Health Offices of the Health Service Executive (HSE) process applications for a Primary Medical Certificate. If the HSE refuses your application for a Primary Medical Certificate, you can appeal the refusal to the Disabled Drivers Medical Board of Appeal, National Rehabilitation Hospital, Rochestown Avenue, Dun Laoghaire, Co. Dublin.

The type of vehicle:

If you are a driver or a passenger with a disability you can claim tax relief on:

  •         A new vehicle
  •         A used vehicle that has not been previously registered in the State

You can also buy a previously registered used vehicle, in which case the amount of the repayment will be the residual VAT contained in the value of the vehicle. However, the majority of used vehicles purchased from a dealer are purchased under the Margin Scheme. This means that no VAT is due when the vehicle is purchased and therefore no VAT is refundable.

If you bought the vehicle before you qualified as a disabled driver or disabled passenger, a repayment of VAT and VRT, appropriate to the market value of the vehicle at the time of entry to the scheme, will be made.

If you are a passenger with disabilities and you buy a used vehicle that has previously qualified for tax relief under the scheme for transporting disabled passengers and where the original adaptions remain in place when you buy it, it is eligible for the scheme.

To qualify for the tax relief the vehicle’s engine must be less than 6,000cc.

You do not have to purchase your vehicle from an authorised motor dealer, and you can use a hire purchase agreement to pay for the vehicle and still qualify for the tax relief.


A family member of a disabled passenger can also qualify for relief if they are living with and responsible for the transport of the disabled person in question and have got the vehicle for that purpose.

If the disabled person only stays with a family member on a part-time basis, the residency requirement is not met. However, if the disabled person is a minor who is in residential or medical care on a part-time or occasional basis and spends a significant part of their time at home, for example, every weekend and holidays, the residency requirement may be met. The Revenue Commissioners can waive the residency requirement in exceptional circumstances.

You should contact the Central Repayments Office to make sure that you meet the residency requirements for relief under the scheme before purchasing a vehicle.

Restrictions on disposal of the vehicle:

"Disposal" means the sale of the vehicle, the gift of the vehicle to another person and the hiring or renting of the vehicle. The vehicle must not be disposed of for at least 2 years from the date the relief is granted. You must keep the vehicle for 3 years for a specifically adapted vehicle and 6 years for an extensively adapted vehicle.

You will only be allowed to dispose of the vehicle within the retention period if you refund the Revenue Commissioners a substantial portion of the relief given. This is calculated by looking at the value of the vehicle at the time of disposal.

If the vehicle is disposed of following damage in an accident, the damage will be considered in calculating the value of the vehicle at the time of disposal.


Disabled Drivers and Disabled Passengers Scheme:

The maximum amount of VRT and VAT relief available under the Disabled Drivers and Disabled Passengers Scheme depends on whether you are a disabled driver or passenger and how the car has been adapted. The maximum amounts are:

  •          Disabled drivers: €10,000
  •         Disabled passengers: €16,000

·         Specifically, adapted vehicles for drivers with severe disabilities: €16,000 (Specifically adapted vehicles are vehicles that need significant adaptations)

·         Extensively adapted vehicles for drivers and passengers: €22,000 (Extensively adapted vehicles are vehicles that need adaptations that cost more than the open market selling price of the vehicle being adapted)


·         Fuel grant:

Fuel GrantIf you qualify for tax relief under the Disabled Drivers and Disabled Passengers Scheme, you also qualify for the fuel grant. The fuel grant is paid per litre, up to a maximum of 2,730 litres per calendar year. The rate per litre is:

  •       Petrol – €0.59
  •       Diesel – €0.48
  •       LPG – €0.10

Applying for the grant:

This couldn’t be easier, simply pop into to see us in Thurles and we will talk you through the whole process. It would assist us if you could bring with you the following:

  • PPS Number
  • Bank Details
  • Principal Medical Certificate
  • Name & Address of Driver
  • Activation PIN Number (We will do this online for you)
  • I appreciate that this was my longest blog to date, but if it is relevant to you, then it was worth the read. So, if you need anything, feel free to contact us here at Barlo Motors in Thurles. We are here to help you through the red tape. 

​Thanks again for taking the time to read the ramblings of your local Sales Manager, James Mc Vicker



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