Is van BIK always 8% in Ireland?

Vans are commonly treated with an 8% flat-rate BIK approach under Irish Revenue rules. The exact rate depends on vehicle classification and CO₂ emissions. Confirm with your employer.

How much tax will I pay on a van BIK?

A van with OMV €35,000 at 8% BIK = €2,800 taxable benefit. At 52% marginal rate: ~€1,456/year in extra tax — far less than a company car at 30% BIK (~€5,460).

Does van BIK affect PAYE, USC, and PRSI?

Yes. The taxable BIK value is added to your income, increasing PAYE, USC, and PRSI deductions at your marginal rate.

Updated 2026-04-07·9 min read

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Van BIK 8% — Ireland 2026 Guide

Vans enjoy an 8% BIK rate — far lower than the ~30% for company cars. A €35,000 van costs ~€1,456/year tax vs ~€5,460. Use the Company Car BIK tool to compare.

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Van BIK vs Company Car — 2026

Van at 8% vs car at 30%

Van (OMV €35,000, 8% BIK) = €2,800 taxable. Company car (same OMV, 30%) = €10,500. At 52%: €1,456 vs €5,460.

Van classification is not automatic

Not all commercial-style vehicles qualify for the 8% rate. Confirm classification with your employer before assuming the rate applies.

Compare van vs car with the BIK tool

Use the Company Car BIK tool to model van vs car scenarios.

1) How van BIK works

Vans that qualify for commercial vehicle treatment are taxed at 8% of OMV. Company cars use CO₂-based rates of 22.5%–37.5%.

Annual taxable BIK = OMV × 8%

Example: OMV €35,000 × 8% = €2,800 taxable benefit → ~€1,456/year extra tax at 52%.

2) Van vs car — real numbers

Vehicle	OMV	BIK	Benefit	Tax (52%)
Van	€35,000	8%	€2,800	~€1,456/yr
Car	€35,000	30%	€10,500	~€5,460/yr

Saving: ~€4,004/year.

Van BIK depends on vehicle classification. Confirm with your employer whether the 8% rate applies.

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