Leslie Massey
Austria has a number of taxes related to vehicles, including a standardised consumption tax (NoVA), a circulation tax, and a motor vehicle tax. The NoVA is a one-off tax payable upon the delivery or first registration of a vehicle in Austria. The circulation tax is calculated based on the engine's horsepower. Electric vehicles are exempt from the circulation tax and the NoVA.
Horsepower Tax in Austria
| Characteristics | Values |
|---|---|
| Tax Name | Standardised consumption tax (NoVA) |
| Basis | Calculated on the basis of the engine's horsepower |
| Calculation | (CO2 g / km - 90) / 5 = tax rate in percent |
| Maximum Tax Rate | 32% |
| Exempt Vehicles | Vehicles with less than 90g CO2 / km, BEVs, FCEVs, vehicles registered before 01/10/2020 abroad and later in Austria, vehicles with transferable number plates, vehicles with a maximum authorised overall weight of more than 3.5 tonnes which are empty or carried loaded in piggyback transportation by rail within Austria |
| Tax Authority | Tax Authority Austria or the Tax Authority for Large Traders |
| Payment | Payable upon delivery or first registration |
| Forms | NOVA2, Kr20 |
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What You'll Learn
Electric vehicles are exempt from the tax
Electric vehicles are exempt from the horsepower tax in Austria. This applies to all-electric vehicles, including those first registered abroad before 01/10/2020 and later registered in Austria. This exemption is part of Austria's eco-social tax reform, which aims to reduce the country's greenhouse gas emissions by taxing them. As a result, electric vehicles offer a double benefit: they are environmentally friendly and cheaper to own and operate due to their exemption from various taxes.
In addition to the horsepower tax exemption, electric vehicles in Austria benefit from several other incentives. For example, they are exempt from registration tax, pollution tax, and motor insurance tax. Furthermore, employers who provide their employees with zero-emission company cars are exempt from taxation on this benefit. There is also a tax investment incentive for purchasing zero-emission cars, amounting to 10% of the purchase price, and special depreciation rules allow for higher depreciation rates in the initial years of ownership.
The Austrian government also encourages the adoption of electric vehicles through funding initiatives. For instance, funding is available for the purchase of light electric vehicles, small electric buses, and light commercial electric vehicles. This funding varies by region and is intended to subsidize the cost of acquiring these vehicles. Additionally, grants of up to €600 for single-home installations and up to €900 for individual installations are offered to encourage the installation of charging infrastructure in private residences. Companies can also receive grants of up to €900 for installing 11/22kW chargers, with a maximum reimbursement of 30% of the expenses.
While electric vehicles currently enjoy numerous tax exemptions and incentives in Austria, it is important to note that these policies are subject to change over time. For example, starting in 2025, battery-electric vehicles (BEVs) will be subject to a 25% road tax, increasing to 100% in 2026. Despite this upcoming change, electric vehicles will likely continue to offer financial advantages over traditional internal combustion engine (ICE) vehicles due to their lower operating costs and the decreasing prices of battery technology.
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How horsepower tax is calculated
In Austria, the horsepower tax is calculated based on the engine's horsepower. This is also known as the circulation tax or motor vehicle tax. The tax is calculated on a daily basis and the taxable party must notify the tax office within one month of the obligation to pay. The duty of disclosure arises upon the registration of the first taxable vehicle. The tax to be paid for the calendar quarter in question is self-assessed by the taxable party and must be paid by the 15th day of the second calendar month following the end of the quarter.
The standardised consumption tax (NoVA) is a one-off tax payable upon the delivery or first registration of passenger cars, motorcycles, and quad bikes, as well as light commercial vehicles up to 3.5 tons. The NoVA is calculated as a percentage of the vehicle's value, excluding VAT and NoVA, and depends on the CO2 emissions. If a certain CO2 limit is exceeded, a CO2 penalty is also due. For passenger cars, station wagons, motor homes, and light commercial vehicles, a fixed amount is then deducted from the calculated tax. The NoVA tax rate is usually calculated using the following formula: (CO2 g / km - 90) / 5 = tax rate in percent. The maximum tax rate is 32%.
Electric vehicles are exempt from the tax, including purely electric vehicles (BEV, FCEV) and vehicles with a CO2 emission value of 0g / km. BEVs are also exempt from all relevant federal taxes, except VAT. However, from 2025, BEVs will pay 25% road tax, increasing to 100% in 2026. REX and PHEV vehicles benefit from special provisions, as they only calculate the nominal power of the internal combustion engine.
For vehicles with transferable number plates, the tax is only payable on the vehicle subject to the highest tax. Vehicles exempt from tax for other reasons are not taken into account. Upon application, tax reductions are available for vehicles with a maximum authorised overall weight of more than 3.5 tonnes that are empty or carried loaded in piggyback transportation by rail within Austria.
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Who is responsible for paying the tax
In Austria, taxes are levied by the state, and the tax revenue in the country was 42.7% of GDP in 2016, according to the World Bank. The most significant revenue sources for the government include income tax, corporate tax, social security contributions, value-added tax, and tax on goods and services.
The vehicle tax, or motor vehicle tax, in Austria is levied on all Austrian vehicles and all foreign vehicles registered in Austria. The basis of taxation for motorcycles is cylinder capacity, and for other vehicles, it is horsepower. The taxable party must notify the tax office within one month of the obligation to pay motor vehicle tax arising. The duty of disclosure arises upon the registration of the first taxable vehicle. The taxable party must also self-assess the tax to be paid for the calendar quarter in question and submit this to the tax office by the 15th day of the second calendar month following the end of the calendar quarter.
For motor vehicles registered in an Austrian registration process, the Tax Authority Austria or the Tax Authority for Large Traders is responsible for collecting the tax. In the case of unlawful use of a vehicle, the Tax Authority Austria is always responsible, and the Customs Authority Austria is responsible for cross-border traffic with motor vehicles not registered in Austria.
The standardised consumption tax (NoVA) is a one-off tax payable upon the delivery or first registration of passenger cars, motorcycles, quad bikes, and light commercial vehicles up to 3.5 tons. When purchasing a new motor vehicle that has not yet been registered in Austria, the buyer pays the NoVA tax to the dealer, who then forwards the payment to the tax office. This does not apply to acquisitions of motor vehicles in the country and to intra-EU acquisitions by authorised vehicle dealers for the purpose of onward delivery. In the case of own import of a new or used motor vehicle for first registration in Austria, the NoVA is payable by private individuals, who must calculate the amount due and send it to the tax office themselves.
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Tax obligations and registration
Motor vehicle tax in Austria is based on a variety of factors, including the vehicle's horsepower, weight, and CO2 emissions. The tax obligation begins on the date of registration and lasts until the registration ends, with tax calculated daily.
For vehicles registered in an Austrian registration process, the Tax Authority Austria or the Tax Authority for Large Traders collects the tax. The person to whom the vehicle is registered is liable for the tax. In the case of unlawful use, the Tax Authority Austria is responsible for collecting the tax, and the tax is calculated from the beginning of the calendar month in which the Austrian registration would have taken place to the end of the calendar month in which the unlawful use ends, with a minimum period of one month.
For vehicles with transferable number plates, the tax is payable only on the vehicle subject to the highest tax. Vehicles exempt from tax for other reasons, such as electric vehicles, are not considered in this calculation. Records must be kept detailing the model and number plate of the vehicle, the duration of the tax obligation, and the tax base. The taxable party must notify the tax office within one month of the first taxable vehicle's registration. The notification can be made using Form Kr20 or without a form.
The standardised consumption tax (NoVA) is a one-off tax payable upon the delivery or first registration of specific vehicles, including passenger cars, motorcycles, and light commercial vehicles up to 3.5 tons. The NoVA is calculated based on the vehicle's value, CO2 emissions, and the inclusion of standard and special equipment. The NoVA form must be used to calculate the amount of tax payable by private individuals, and the tax must be paid before registering the vehicle in Austria.
There are also incentives and exemptions for certain vehicles. For example, zero-emission cars are exempt from ownership tax and pollution tax, and there is a tax investment incentive of 10% for purchasing these vehicles. Electric vehicles are also exempt from the circulation tax, which is calculated based on the engine's horsepower.
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Tax exemptions
In Austria, tax exemptions are provided for various reasons, including tax treaties, specific vehicle types, and certain types of income or payments. Here are some details about tax exemptions in Austria:
US citizens living in or moving to Austria are subject to Austrian income tax and must file both local and US tax returns. To prevent double taxation, the US-Austria tax treaty provides tax relief through foreign tax credits and exemptions. Additionally, the Totalization Agreement addresses dual social security taxation, ensuring that workers are not taxed on the same earnings in both countries.
Austria has several tax exemptions and incentives for specific types of vehicles:
- BEVs (Battery Electric Vehicles) are 100% tax-exempt from federal taxes, except VAT. From 2025, BEVs will pay 25% road tax, and from 2026 onwards, they will pay the full road tax, which will be higher than ICE cars due to weight.
- PHEVs (Plug-in Hybrid Electric Vehicles) are taxed only on their ICE (Internal Combustion Engine) component.
- Zero-emission cars are exempt from ownership tax, pollution tax, and certain company car benefits-in-kind taxation.
- Company BEVs up to €40,000 are exempt from VAT, with partial exemptions for vehicles between €40,000 and €80,000.
- Trailers with a maximum authorised weight of over 3.5 tonnes can receive a 15% tax reduction if transported by rail within Austria.
Other Tax Exemptions
Austria also offers various other tax exemptions:
- Relocation expenses paid by employers to employees who relocate to another location are exempt from tax.
- Special payments, such as 13th and 14th salaries and bonuses, are taxed at a lower rate of 6% in Austria, with the first €620 being tax-free.
- Expatriates can claim a lump sum for income-related expenses, amounting to 20% of their gross salary, up to a maximum of €10,000 per year.
- Certain goods and services in Austria are subject to reduced VAT rates of 10% or 13%, including food, public transport, and saunas.
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Frequently asked questions
The horsepower tax in Austria, also known as the circulation tax, is calculated based on the engine's horsepower.
The tax rate is calculated using the formula: (CO2 g / km - 90) / 5 = tax rate in percent. The maximum tax rate is 32%.
The Tax Authority Austria or the Tax Authority for Large Traders collects the tax for vehicles registered in an Austrian registration process.
Yes, electric vehicles are exempt from the horsepower tax. BEVs (Battery Electric Vehicles) are also exempt from all relevant federal taxes, except VAT.
