The Vitz RS was launched in 2005. It is powered 1.5 L 4-cylinder VVT-i engine rated 107 bhp (80 kW) and 140 N⋅m (103 lbf⋅ft). The RS features 16-inch alloy wheels, an RS badged mesh grille, a redesigned front and rear bumper, redesigned tail lamps, deep side skirts and a tail spoiler. It also features sports tuned steering and suspension as well as disc rear brakes.

The Vitz RS was sold in North American market equipped with the base 1.5-litre engine, and in European markets as the Yaris TS. It was first seen at the 2007 Geneva Motor Show. As with the previous T-Sport,[40] there are extra rear reflectors on the bumper. Essentially, it is a Japanese market Vitz RS fitted with a 1.8-litre 2ZR-FE engine rated 130 hp (97 kW) and 173 N⋅m (128 lb⋅ft), which can reach 100 km/h (62 mph) in under 10 seconds.

For model year 2007 on Japanese models only, G-BOOK, a subscription telematics service, was offered as an option.

The facelifted Vitz RS/Yaris TS was also a basis for the 2012 Thai-built Yaris facelift.
Toyota redesigned the Vitz in early 2005, going on sale in Japan that February. While the previous generation Vitz hatchback and Platz sedan look and feel virtually alike, the redesigned XP90 Vitz and Belta are more subtly related in terms of appearance. The two cars share underpinnings, notably the frame and the drivetrain components, however the sheet metal and interior is different. While the Vitz was designed at Toyota's European ED2 design studios, the Belta was designed at their Japanese design studios.

The European, Australian, Canadian, Mexican, Venezuelan and Puerto Rican markets received the second-generation Vitz near the end of 2005. In the Australia and North America, the car was sold under the Yaris nameplate for the first time; the Belta is also sold there but with the nameplate Yaris sedan. The production Yaris for the US market was unveiled at the Los Angeles Auto Show in January 2006. The XP90 series Yaris was built in Japan, France, Thailand, China and Taiwan.

The previous 4-cylinder 1.0 VVT-i engine was replaced by the 3-cylinder engine also found in the Toyota Aygo. The 1.3-litre engine was revised to offer slightly more power, and the 1.4 D-4D got a 15 PS (11 kW; 15 hp) boost to 90 PS (66 kW; 89 hp), the former engine allowing it to achieve exceptional fuel economy. For the European market in early 2009 the Yaris added a 1.33-litre engine with Stop & Start technology. The Yaris became the first car in its class to offer nine airbags.[citation needed]

It also received a minor facelift in 2009 with slight subtle revisions to its bumper with in-built cornering protectors, air dams and an orange tinted signal on its tail lamps.

From 2011 to 2013, Daihatsu sold the five-door XP90 Yaris in Europe as the Daihatsu Charade. Imported from Thailand, powertrains comprised a 1.3-litre engine and six-speed manual or optional automatic. The Charade was sold alongside the XP130 series Yaris.

The XP90 series Yaris continued to be built in China and Thailand until it was replaced by the XP150 model in November