ACEA Tax Guide 2021

2021
WWW. A C E A . B E
A C E A TA X G U I D E 2 0 2 1
Foreword
This 2021 edition of the annual Tax Guide published by the European Automobile Manufacturers’
Association (ACEA) presents a comprehensive overview of specific taxes that are levied on
motor vehicles in Europe, as well as in other major markets around the world.
Counting more than 350 pages, this is the most complete edition to date, which makes it an
indispensable tool for anyone interested in the European automotive industry and related policies.
The 2021 Tax Guide contains all the latest information about taxes on vehicle acquisition (VAT,
sales tax, registration tax), ownership (annual circulation tax, road tax) and motoring (fuel tax).
In addition to looking in detail at the 27 member states of the European Union, the United
Kingdom and the three EFTA countries Iceland, Norway and Switzerland, the Guide also provides
in-depth taxation information for Brazil, China, India, Japan, South Korea, Russia, Turkey and the
United States.
The ACEA Tax Guide is compiled with the help of the national associations of motor vehicle
manufacturers or importers in all these countries. ACEA would like to extend its sincere gratitude
to all involved for making up-to-date information available for this publication.
Eric-Mark Huitema
ACEA Director General
Copyright
Reproduction of the content of this document is not permitted without the prior written consent of
ACEA. Whenever reproduction is permitted, ACEA shall be referred to as source of the information.
ACEA TAX GUIDE 2021
Summary
EU member countries 4
EFTA 223
Other countries 233
ACEA TAX GUIDE 2021
EU member states
EU summary tables 5
Austria 10
Belgium 22
Bulgaria 44
Croatia 48
Cyprus 52
Czech Republic 54
Denmark 62
Estonia 77
Finland 80
France 85
Germany 96
Greece 105
Hungary 115
Ireland 120
Italy 131
Latvia 143
Lithuania 150
Luxembourg 154
Malta 164
Netherlands 167
Poland 173
Portugal 178
Romania 185
Slovakia 189
Slovenia 200
Spain 209
Sweden 216
01
ACEA TAX GUIDE 2021
EU summary tables
Chapter prepared by
Francesca Piazza
[email protected]
ACEA
European Automobile
Manufacturers’ Association
Avenue des Nerviens 85
BE — 1040 Brussels
T. +32 2 732 55 50
www.acea.be
EUROPEAN UNION
1 MOTOR VEHICLE TAXATION: EU SUMMARY
1.1 TAXES ON ACQUISITION
Country VAT Registration Tax

Austria 20% Based on CO2 emissions (max 32% + bonus/malus)
Belgium 21% Based on cylinder capacity and age (Brussels-Capital)
Fuel, age, emission standards and CO2 (Flanders)
Cylinder capacity, age and CO2-based bonus/malus scheme (Wallonia)
Bulgaria 20% Plate costs (BGN 25) + eco tax (BGN 160)
Croatia 25% Based on vehicle sale price, CO2 emissions and fuel type
Cyprus 19% Based on CO2 emissions and cylinder capacity
Czech Republic 21% Registration tax (max CZK 800) + eco tax based on emission standards
Denmark 25% 25% of the vehicle’s taxable value up to DKK 65,000 + 85% of the value
between DKK 65,000 and DKK 202,200 + 150% of the value above DKK
202,200
Estonia 20% Registration label (€62) + registration card (€130)
Finland 24% Based on retail value and CO2 emissions (min 2.7%, max 50%)
France 20% Registration tax (varies by region) + CO2-based bonus/malus scheme
Germany 19% Registration fees (€26.30)
Greece 24% Based on net retail price and CO2 emissions
Hungary 27% Based on cylinder capacity and emission standards
Ireland 23% Based on market selling price, NOx and CO2 emissions
Italy 22% Based on vehicle type and horsepower + registration fees (€150.00 for new
vehicles) + CO2-based bonus/malus scheme
Latvia 21% Registration costs (€43.93) + national resources tax (€55)
Lithuania 21% Registrations fees by vehicle type
Luxembourg 17% Registration stamp (€50) + supplement (€24 or €50)
Malta 18% Based on vehicle’s value, CO2 emissions and length
Netherlands 21% Based on CO2 emissions and fuel efficiency
Poland 23% Excise tax based on cylinder capacity (up to 18.6% of vehicle’s value) +
registration fees (PLN 180.50 for cars) + identification card (PLN 75)
Portugal 23% Based on cylinder capacity and CO2 emissions + registrations fees (€55) +
plate costs (€45)
Romania 19% Registration fees (RON 40)
Slovakia 20% Registration fees (min €33 based on vehicle’s value, engine power and age) +
plate costs (€16.5)
Slovenia 22% Based on fuel type, CO2 emissions, engine power and the environmental
category defining the EURO emission standard.
Spain 21% Based on CO2 emissions (max 14.75% for 200g/km or more)
Sweden 25% No registration tax at the purchase.

AC E A TA X G U I D E 2 0 2 1
6
EUROPEAN UNION
1.2 TAXES ON OWNERSHIP
Country Passenger cars Commercial vehicles

Austria Engine power (kW) for cars registered Gross vehicle weight (GVW)
until 30/09/2020
Engine power (kW) and CO2 emissions
for cars registered after 30/09/2020
Belgium Cylinder capacity, CO2 emissions, fuel Brussels-Capital and Wallonia: maximum
type and emission standards permissible weight (MPW)
Flanders: MPW, CO2 emissions, fuel type and
emission standards
Bulgaria Engine power (kW), year of production MPW, number of axles and suspension type;
and emission standards number of seats for buses
Croatia Engine power (kW) and age Engine power (kW) and age
Cyprus CO2 emissions CO2 emissions
Czech Republic1 Engine size Weight and number of axles
Denmark Fuel consumption or CO2 emissions, Weight, fuel consumption, CO2 emissions or
and weight number of axles and suspension
Estonia None Weight, number of axles and suspension type
Finland CO2 emissions, weight and fuel type Weight and number of axles
France Fiscal power (hp) and CO2 emissions Weight, number of axles and suspension type
Germany CO2 emissions and cylinder capacity Weight, exhaust emission group and noise
Greece Engine capacity or CO2 emissions Gross vehicle weight; number of seats for
buses
Hungary Engine capacity and year of production Weight (reduction based on emission
standards)
Ireland Cylinder capacity or CO2 emissions Deadweight; number of seats for buses
Italy Engine power (kW), emission standards Global weight, number of axles and suspension
and fuel type type
Latvia GVW, engine capacity (cc), power (kW) Weight, number of axles and suspension type
Lithuania None Weight, number of axles and suspension type
Luxembourg CO2 emissions or cylinder capacity Maximum vehicle weight (MVW), axles,
suspension type
Malta CO2 emissions and age CO2 emissions and age
Netherlands GVW, province, fuel, CO2 emissions GVW and number of axles
Poland None Weight and number of axles
Portugal Cylinder capacity and CO2 emissions GVW, number of axles and suspension type
Romania Cylinder capacity (cc) GVW and number of axles
Slovakia Cylinder capacity and age GVW and number of axles
Slovenia None None
Spain Engine rating (hp) Payload
Sweden CO2-emission and fuel type GVW, number of axles, fuel type
1 Only for business purpose vehicles

7
EUROPEAN UNION
1.3 TAXES ON MOTORING2
Excise duties on fuels in €/1,000 litres

Country Unleaded Petrol Diesel
Austria 482 397
Belgium 600 600
Bulgaria 363 330
Croatia 510 405
Cyprus 429 400
Czech Republic 477 370
Denmark 638 435
Estonia 563 372
Finland 724 513
France 683 594
Germany 655 470
Greece 700 410
Hungary 345 317
Ireland 619 515
Italy 728 617
Latvia 509 414
Lithuania 466 372
Luxembourg 516 404
Malta 549 413
Netherlands 813 522
Poland 374 330
Portugal 668 513
Romania 375 344
Slovakia 514 368
Slovenia 445 464
Spain 504 379
Sweden3 643 452
EU minimum rates 359 330
Source: European Commission, TEDB – “Taxes in Europe" database
2 Situation on 1 January 2021

3 Includes energy and CO2 tax

8
1.4 FISCAL INCOME FROM MOTOR VEHICLES IN MAJOR EUROPEAN MARKETS4
AT BE DE DK ES FI FR GR IE IT NL PT SE
(€ bn) (€ bn) (€ bn) (DKK bn) (€ bn) (€ bn) (€ bn) (€ bn) (€ bn) (€ bn) (€ bn) (€ bn) (SEK bn)
Purchase or transfer 2020 2019 2019 2018 2019 2019 2019 2020 2019 2019 2019 2019 2020
1.VAT on vehicle sales, 3.0 8.0 34.6 − 5.0 1.7 20.3 0.3 0.7 18.9 1.2 4.5 25.0
servicing, repair & parts
2. Sales & registration 0.5 0.5 − 20.7 0.5 0.9 2.3 0.3 1.0 1.9 2.2 0.7 −
taxes
3. Annual ownership 2.7 1.7 9.4 9.9 2.9 1.1 0.9 1.3 0.9 6.7 4.3 0.7 15.4
taxes
4. Fuels & lubricants 5.6 8.7 41.9 17.5 21.5 3.8 43.1 5.5 3.5 37.3 10.4 3.5 43.1
5. Others

Driving license fees − 0.0 0.2 − 0.1 − − − 0.0 − 0.3 − −

Insurance taxes 0.4 1.0 5.4 1.5 − 0.4 5.3 0.5 0.1 3.9 1.2 − 2.9
Tolls 2.3 0.7 8.2 0.5 − − 13.0 − − 2.2 0.2 0.2 2.8
Customs duties − − 0.2 − − − − − − − − − −
Other taxes 0.4 0.8 − − 0.8 − 1.6 0.2 − 5.4 1.8 − −
TOTAL (national 14.9 21.4 99.9 50.1 30.8 7.9 86.4 8.1 6.2 76.3 21.5 9.6 89.2
currencies)
TOTAL (€)5 14.9 21.4 99.9 6.7 30.8 7.9 86.4 8.1 6.2 76.3 21.5 9.6 8.7
GRAND TOTAL = €398.4 billion
9
4
Latest available data; only countries for which sourced data is available are listed
5 Euro foreign exchange reference rates at 30 March 2021; source: ECB
EUROPEAN UNION

02
ACEA TAX GUIDE 2021
Austria
Chapter prepared by
Andreas Gaggl
[email protected]
FFOE
Austrian Vehicle Industry Association
Wiedner Hauptstrasse 63
AT — 1045 Wien
T. +43 5 90 900 48 00
F. +43 5 90 900 289
www.fahrzeugindustrie.at
www.automotiveindustry.at
AUSTRIA
1 TAXES ON ACQUISITION
1.1 VAT
All vehicles (new cars, second-hand cars, passenger cars, caravans, commercial vehicles, buses, etc) are
subject to VAT (Umsatzsteuer) at a rate of 20% when the vehicle is acquired from a taxable person
registered for VAT. VAT is levied on the effective invoice price.
It is possible to deduct the VAT (through input VAT) on the purchase of commercial vehicles for
professional use. Except for certain exemptions, such as cars for driving schools and taxis, deductions are
not allowed for passenger cars and station wagons (Kombinationswagen). Since 1 January 2016 a
deduction of VAT (through input VAT) is also applicable for zero-emission passenger cars, combination
cars (eg all types of electric vehicles and hydrogen-powered cars) and since 1 January 2020 also for zero-
emission motorcycles/e-bikes.
1.2 FUEL CONSUMPTION/POLLUTION TAX

1.2.1 Calculation of fuel consumption/pollution tax
Fuel consumption/pollution tax (Normverbrauchausgabe – NoVA) is levied on the purchase price (net) or
commercial leasing fee of new passenger cars and motorcycles and on passenger cars and motorcycles
not yet registered nationally. There are tax exemptions inter alia for electric or electrohydraulic cars, cars
for driving schools, taxis, ambulances, fire brigades, vehicles for diplomatic use, specific-use vans and
vehicles for disabled people.
The maximum NoVA rate for passenger cars is 32% (excluding malus fee, if applicable) and is rounded to
the nearest whole number. NoVA is incorporated into the basic retail price of the vehicle, but VAT is not
applied to the total amount anymore and is now charged separately. NoVA can be refunded for
rental/leasing cars exported from Austria based on the standard market value of the car.
Since 1 January 2007, NoVA has also been refunded for vehicles exported from Austria in proportion with
the common value of the vehicle. Since 1 January 2016, such a refund has also been available to private
persons selling their vehicle to a buyer in a foreign country.
Since 1 January 2020, the percentage of fuel consumption/pollution tax is calculated as follows:
Motorcycles with a cylinder capacity exceeding 125cm3
[(CO2 emissions in g/km - 55) ÷ 4] + NoVA malus fee (if applicable)
The NoVA malus fee is €20 for each g/km of CO2 emission exceeding 150g/km (eg CO2 emissions of
170g/km would result in a malus fee of €400).
The maximum NoVA rate for motorcycles is 20% (not including malus fee, if applicable) and is rounded
to the nearest whole number. Motorcycles with a cylinder capacity not exceeding 125cm3 will not be
charged NoVA. Effective from 1 July 2021 this maximum NoVA rate will be increased to 30% (not
including malus fee, if applicable) and is rounded to the nearest whole number.
Effective from 1 January 2024, the reduction rate of 55g (for the year 2020) being applied in the formula
above will be reduced by 2g every two years.
Note: CO2 emissions will be measured based on the WMTC (World Motorcycle Test Cycle) in
accordance with the current EU Directive (2013/16). If no CO2 emissions are available for the specific
motorcycle, the old formula will be applied for calculation (with a maximum percentage of 20%):
0.02 × (cylinder capacity in cm3 - 100)

11
AUSTRIA
Passenger cars (including minibuses and caravans) and combination cars
[(CO2 emissions in g/km - 115) ÷ 5] + NoVA malus fee (if applicable) - €350.
The NoVA malus fee is €40 for each g/km of CO2 emission exceeding 275g/km (eg CO2 emissions of
295g/km would result in a malus fee of €800).
The maximum NoVA rate for passenger cars is 32% (not including malus fee, if applicable) and is
rounded to the nearest whole number. The calculation shall not lead to any negative tax in the sense of
a tax credit. Effective from 1 July 2021, this maximum NoVA rate will be increased to 50% (not including
malus fee, if applicable) and is rounded to the nearest whole number.
Effective from 1 January 2021, the reduction rate of 115g (for the year 2020) being applied in the formula
will be reduced by 3g each year.
Note: CO2 emissions for all vehicles (except motorcycles) will be measured based on the combined
WLTP (Worldwide harmonized Light vehicles Test Procedure) in accordance with the current EU
Directive (2017/1151) and its other respective EU Directives and Austrian regulations.
For externally chargeable electro-hybrid vehicles, the weighted combined WLTP will be used for the CO2
emissions.
If no CO2 emissions are available for the specific car/vehicle, then the double amount of the engine-
power measured in kilowatts (kW) will be considered as CO2 emissions.
For vehicles adjusted later on as camper vans or motorhomes, both options can be taken in
consideration for quantifying the CO2 emissions with a minimum tax rate of 16%.
Zero-emission vehicles (with 0g/km of CO2 emissions), in particular electric cars, and since 1 July 2021
hydrogen-powered cars, are not charged with any NoVA.
Effective from 1 July 2021, light commercial vehicles, transporters & pick-ups (N1) with a maximum gross
vehicle weight of up to 3.5t, as well as light and heavy four-wheels vehicles (L6e and L7e) of more than
125cc, will also be included into NoVA taxation (with CO2 emissions).
1.3 TAX ALLOWANCES

Taxable persons have several options for recording the acquisition and use of a business vehicle in their
financial records.
• Deduction of VAT/other tax benefits: for business vehicles that are not passenger cars or
combination cars (except for cars for driving schools, taxi companies, and leasing companies), the
VAT on the purchase price can be deducted. Since 1 January 2016 a deduction of VAT (through
input VAT) is also applicable for zero-emission passenger cars, combination cars (eg electric
vehicles and hydrogen-powered cars) and since 1 January 2020 also for zero-emission
motorcycles and e-bikes. In addition, a tax allowance (Gewinnfreibetrag, §10 of the
Einkommensteuergesetz) up to 13% (ie 4.5–13%) of a company’s profit can be granted for investing
in such vehicles, up to a maximum of €45,350, if the company’s profit exceeds €30,000.
• In case of sale of a vehicle owned for at least seven years, the profit resulting from the difference
between the sale price and the registered book value can be deducted from the acquisition price
of new goods (instead of being treated as profit from the sale).
• Depreciation can be applied to all vehicles if they are used for business purposes. Depreciation of
a vehicle is generally calculated on eight years or more (passenger cars) or three to ten years (all
other vehicles) based on the purchase price (including pollution tax and VAT, if not deductible). If
the value of a car is such that it is considered a luxury product (ie purchase price exceeding
€40,000), only the percentage up to this amount (including all accessories) is deductible in the tax
declaration for depreciation.

12
AUSTRIA
• Operating costs – or at least the percentage of the operating costs that result from business use
of the car – can be deducted from profit. If the car is used for private means to a certain extent,
this percentage of the total cost is not deductible from corporate income. The operating costs
(including depreciation) of a private car used for business purposes can be deducted at a rate of
€0.42/km (since 1 August 2008).
1.4 REGISTRATION CHARGES

For the registration of vehicles, the following administration fees are charged:
Vehicle type New vehicles (€) Second-hand vehicles (€)
Passenger cars, station wagons 193.50 193.50
Lorries, coaches 193.50 193.50
Heavy machinery 183.00 183.00
Special vehicles, trailers 183.00 183.00
Motorcycles 184.50 184.50
Deregistration – –
2 TAXES ON OWNERSHIP
2.1 VEHICLE TAX

Vehicle tax is levied on all Austrian vehicles and on all foreign vehicles registered in Austria. The basis of
taxation is cylinder capacity for motorcycles and horsepower for all other vehicles (with elements of CO2
emissions being implemented since 2020). For vehicles exceeding 3.5t, the gross vehicle weight is relevant.
Passenger cars and station wagons subject to compulsory third-party insurance – from 1 January 1997 for
all vehicles with a gross weight below 3.5t – Engine-Related Insurance Tax (Motorbezogene
Versicherungssteuer) is applicable, whereas Vehicle Tax (Kraftfahrzeugsteuer) applies to all other vehicles.
2.1.1 Calculation of Vehicle Tax

There are different calculation methods depending on the date of registration and the provision of accurate
CO2 emission figures for each vehicle. The vehicle tax for newly registered vehicles (by
1 October 2020) has implemented a CO2-emission parameter beside the engine power, getting both more
restrictive by 1 January 2021 and beyond.
The monthly rates of vehicle tax can be calculated using the following formula:

13
AUSTRIA
Vehicle tax for all vehicles registered before 1 October 2020
Type of vehicle Monthly rate (€) Notes Minimum Maximum rate (€)
(gross weight) rate (€)
Motorcycles1 0.025/cm3 Per cm3 cylinder – –
(for yearly payment capacity
in advance)
Passenger cars, station For all vehicle kW = kilowatts 6.20 72.00
wagons and vehicles engines: f = number of months (does not apply to
< 3.5t2 3 0.62 × (kW - 24) × f (for yearly payment in passenger cars and
(for the first 66kW) advance) station wagons)
0.66 × (kW - 24) × f
(for the next 20kW
above 66kW)
0.75 × (kW - 24) × f
(for each kW above
86kW)
Vehicles 3.5–12t 1.55/t – 15.00 –
Vehicles 12t–18t 1.70/t – – –
Vehicles > 18t 1.90/t – – 80.00
Trailers – 15.00 66.00
3.5–12t 1.55/t
12–18t 1.70/t
> 18t 1.90/t
For motorcycles, passenger cars and station wagons, and other vehicles registered abroad and being
temporarily used in Austria, a daily rate of vehicle tax (Kraftfahrzeugsteuer) of €1.10; €2.20; and €13.00,
respectively, may be applied.
Note: Vehicle tax for vehicles (including motorcycles) registered after 30 September 2020 will be levied on
the CO2 emission values and engine power (kW) based on the World Motorcycle Test Cycle (WMTC) and
on the Worldwide harmonised Light vehicles Test Procedure (WLTP). The new regulation is effective from
1 October 2020.
1
For monthly payment in advance, the rate increases by 10%. For motorcycles, then, a monthly payment rate of €0.0275/cm³ applies.
An increase of 6% and 8% applies to 6-monthly and quarterly payments, respectively.
2 The tax is payable together with the insurance premium. The rate increases by 20% for vehicles registered before 1 January 1987 if
they do not meet certain emission standards.

3 For monthly payment in advance, the rates mentioned increase by 10% (§6 Versicherungssteuergesetz) – ie €0.682/month,
€0.726/month, €0.825/month – and a maximum rate of €80 applies. An increase of 6% and 8% applies to 6-monthly and quarterly
payments, respectively.

14
AUSTRIA
Vehicle tax for all vehicles registered after 30 September 2020 with CO2 emission measurement
(EU Directive 2017/1151, WMTC/WLTP/combined WLTP)
Type of vehicle Monthly rate (€) Notes Minimum Maximum rate

(gross weight) rate (€) (€)
Motorcycles 0.014 × (cm3 - 52) + 0.20 × (CO2 Per cm3 cylinder capacity – –
emissions in g/km - 52)
Min (CO2 emissions - 52)
(for yearly payment in advance) = 10g
Min (CO2 emissions - 52) = 10g

Passenger cars, For all vehicle engines: kW = kilowatts 6.20 72.00
station wagons f = number of months (does not apply
and vehicles [0.72 × (kW - 65) + 0.72 × (CO2 (for yearly payment in to passenger
< 3.5t emissions in g/km - 115)] × f advance) cars and station
wagons)
Min (kW - 65) = 5kW Effective from 1 January
Min (CO2 emissions - 115) = 5g 2021 each year the value
of 115g will be reduced in
the formula by 3g and the
65kW will be reduced in
the formula by 1kW
Vehicles 3.5–12t 1.55/t – 15.00 –
Vehicles 12t–18t 1.70/t – – –
Vehicles > 18t 1.90/t – – 80.00
Trailers – 15.00 66.00
3.5–12t 1.55/t
12–18t 1.70/t
> 18t 1.90/t
Vehicle tax for all vehicles registered after 30 September 2020 without CO2 emission measurement
(EU Directive 2017/1151, WMTC/WLTP/combined WLTP)
Type of vehicle Monthly rate (€) Notes Minimum Maximum rate

(gross weight) rate (€) (€)
Motorcycles 0.025/cm3 Per cm3 cylinder – –
(for yearly payment in capacity
advance)
Passenger cars, station For all vehicle engines: kW = kilowatts 6.50 76.00
wagons and vehicles 0.65 × (kW - 24) × f f = number of months (doesn’t apply to
< 3.5t (for the first resting 66kW) (for yearly payment in passenger cars
0.70 × (kW - 24) × f advance) and station
(for the next resting 20kW wagons)
above 66kW)
0.79 × (kW - 24) × f
(for each resting kW above
86kW)
Vehicles 3.5–12t 1.55/t – 15.00 –
Vehicles 12t–18t 1.70/t – – –
Vehicles > 18t 1.90/t – – 80.00
Trailers – 15.00 66.00
3.5–12t 1.55/t
12–18t 1.70/t
> 18t 1.90/t
Zero-emission cars/trucks (electric vehicles, hydrogen-powered vehicles) are not charged any vehicle
tax.

15
AUSTRIA
2.1.2 Tax exemptions

The main tax exemptions apply to vehicles used in official services (eg local authorities, ambulance
services, the fire brigade, etc); buses and coaches; taxis; vehicles for disabled people; electric cars; heavy
equipment (construction equipment, bulldozer, excavators, etc); motorcycles with a cylinder capacity below
100cm3; vehicles with a gross weight of over 3.5t used for combined transport to and from inland railway
stations only; vehicles exempt due to bilateral contracts (eg holiday traffic).
According to EU law, there are further exemptions for vehicles with a gross weight of over 12t registered in
another EU member state and used in Austria; cars owned by foreign students registered in another EU
member state and used in Austria; and passenger cars and combination cars registered in another EU
member state and used in Austria for a period not exceeding six months.
3 TAXES ON MOTORING
3.1 FUEL TAX
Diesel LPG Super95 Super100
Product cost incl profit (€/1000l) 852.03 488.17 793.31 968.31
Pflichtnotstandsreserve4 (€/1000l) 12.64 0.00 11.36 11.36
Fuel tax (€/1000l) 397.00 261.00 482.00 482.00
Subtotal (€/1000l) 1,261.67 749.17 1,286.67 1,461.67
VAT (20%) 252.33 149.83 257.33 292.33
Price at the pump (€/1000l) 1,514.00 899.00 1,544.00 1,754.00
Note: Figures as of 25 February 2021
In general, fuel tax rates depending on the fuel type, the amount of sulphur and the amount of biogenous
material in the fuel are as follows:
Type of fuel Rate of MÖSt5 in €/1000l
Unleaded/Eurosuper (Super95)/SuperPlus (Super100) with an amount of sulphur 515.00
≤ 10mg/kg (≤ 0.013g Pb/l)
> 10mg/kg (≤ 0,013g Pb/l)
≤ 10mg/kg (≤ 0.013g Pb/l) with biogenous amount min 46l/1000l
Diesel with an amount of sulphur ≤ 10mg/kg 425.00
Diesel with an amount of sulphur > 10mg/kg 425.00
Diesel with an amount of sulphur ≤ 10mg/kg with biogenous amount min 66l/1000l 397.00
Note: Figures as of 30 October 2019
3.2 INSURANCE TAXES

All vehicles must be covered by a third-party insurance policy. Insurance policies are subject to an insurance
tax (Versicherungssteuer) amounting to 11% of the annual fee.
3.3 TOLLS/ROAD PRICING CHARGE
Passenger cars, light commercial vehicles, motorcycles
It is compulsory for motorcycles, passenger cars, and other vehicles with a gross weight of up to 3.5t to
carry a toll sticker (Vignette) for circulation on all Austrian highways and expressways. In addition to the
traditional toll sticker (Vignette), a digital form (Digital Vignette) has been introduced in 2018.
4
Compulsory emergency reserves
5
Fuel Tax Basis legal act published on 1 January 2011

16
AUSTRIA
Tolls on other specified roads can be levied in addition.

Toll sticker prices, including VAT, are as follows:
Yearly toll sticker 2-month toll sticker 10-day toll sticker
Validity 1 December of the previous 2 consecutive calendar 0:00 hours on the day of
year to 31 January of the months issue to 24:00 hours on
following year the 9th consecutive day
Cost for motorcycles (€) 36.70 13.90 5.50
Cost for cars and other 92.50 27.80 9.50
vehicles up to 3.5t
(gross weight)6 (€)
Note: Figures as of 1 December 2020
Tolls on specified road-sections can be levied in addition to the Vignette (eg Brenner, Tauerntunnel,
Bosruck/Gleinalm, Karawankentunnel, Arlbergtunnel).
These Austrian road sections have a distance-related toll. For the use of these six sections, a toll ticket is
required, also available as a digital route toll ticket and a digital section toll pass with contactless usage.
The following applies to the circulation of passenger cars up to 3.5t on these roads:
• Commuters on their way to work do not have to pay to use these sections of road
• With the possession of a yearly toll sticker (Vignette), €40 are deducted from the purchase price of
a yearly toll road ticket for certain Austrian road sections
Exceptions to the compulsory Vignette usage
For passenger cars and vehicles up to 3.5t gross weight there are five road sections where no toll is levied
and no Vignette is required. The exceptions apply for the following road stretches:
• the toll road A1 Westautobahn between the national border at Walserberg and the Salzburg Nord
junction,
• the toll road A12 Inntalautobahn between the national border at Kufstein and the Kufstein-Süd
junction,
• the toll road A14 Rheintal/Walgau Autobahn between the national border at Hörbranz and the
Hohenems junction,
• The bypass bridges to be built on the toll road A7 Mühlkreis Autobahn between the Hafenstraße
junction and the Urfahr junction (currently under construction)
• the toll road A26 Linzer Autobahn (currently still under construction).
Heavy commercial vehicles

A distance-related road pricing charge (Fahrleistungsabhängige Maut) was introduced on 1 January 2004
for all vehicles, vehicle combinations and buses exceeding 3.5t in gross weight for circulation on all
Austrian highways and expressways. The road pricing charge is based on kilometres travelled and number
of axles, and, since 1 January 2010, on the EURO emission class of the vehicle (for environmental reasons).
Since 1 January 2017 noise pollution is also considered along with air pollution (EURO emission classes
as well as purely electric drives and hydrogen fuel cell drives).
6
Trailers towed by these vehicles are not obliged to carry toll stickers. Camping vehicles require only one toll sticker for a vehicle up
to 3.5t, regardless of the actual gross weight

17
AUSTRIA
Buses, vehicles and vehicle combinations with a gross weight > 3.5t (valid from 1 January 2021)
Road pricing per km in € (excluding 20% VAT)
Distance-related toll including surcharges for air and noise pollution
EURO emission class/drive type Category 2 Category 3 Category 4+
(two axles) (three axles) (four or more axles)
Day Night7 Day Night7 Day Night7
Drive type E/H2 (covers purely electric 0.09810 0.09850 0.13797 0.13889 0.20657 0.20773
drives and hydrogen fuel cell drives)
A: Emission class EURO VI 0.20010 0.20050 0.28077 0.28169 0.41702 0.41818
B: Emission class V and EEV8 0.20980 0.21020 0.29435 0.29527 0.43399 0.43515
C: Emission class EURO IV 0.21670 0.21710 0.30401 0.30493 0.44503 0.44619
D: Emission class EURO 0 to III 0.23730 0.23770 0.33285 0.33377 0.47799 0.47915
Note: Figures as of 1 January 2021
For charging reasons, each vehicle exceeding 3.5t in gross weight must be equipped with a GO-Box
electronic transmitter. The GO-Box can be obtained for a rental price of €5 at border stations and other
specific points of sale (eg gas stations, highway restaurants, etc).
For certain Austrian road sections (eg Brenner, Tauerntunnel, Arlbergtunnel) having a distance-related toll
system, the toll will now be charged electronically through the GO-Box.
4 PRIVATE USE OF A COMPANY CAR

As of 1 January 2016, the amount of the taxable total benefit in kind for the private use of a company car
considers the CO2 emissions of the car in the year of purchase.
If the car emissions do not exceed the CO2 emission limit of 141g/km in the year of purchase, the total
benefit is calculated at 1.5% of the purchase price (including VAT, NoVA, accessories, etc) per month; the
maximum amount is €720. This rule applies for cars purchased in the year 2020 after 31 March 2020 and
will be lowered from 2020 to 2025 as follows:
Year of purchase CO2 emissions limit (g/km)
2020 (effective from 31 March 2020) 141
A COVID exception applies for cars purchased before
31 March 2020 but registered after that date until 31
May 2020
2021 138
2022 135
2023 132
2024 129
2025 126
For the use of a car exceeding the relevant CO2 emission limit in the year of purchase, the total benefit is
calculated at 2% of the purchase price (including VAT, NoVA, accessories, etc) per month; the maximum
amount is €960.
A reduction of 50% on the total benefit (calculated as above) is applicable if a maximum of 500km of private
use can be proven each month. If a kilometre-driven calculation approach at €0.50/km and €0.67/km
(€0.72/km and €0.96/km if a driver is added) leads to a lower result than 50% for 1.5% (low CO2 emissions)
7
The night rates apply between 10pm and 5am
8 EEV: Energy Efficient Vehicles

18
AUSTRIA
and 2% (ordinary rated cars), the lower result may be considered a benefit in kind (under the condition that
true records on private use are kept).
The private use of zero-emission cars (eg electric cars) is fully exempt from the taxation mentioned above
if the vehicle was purchased in the year 2016 or later. Bicycles, e-bikes and other zero-emission motorcycles
are exempt from taxation as well. The benefit of fuel is not charged separately.
For providing a free parking lot in areas with regular on-street parking controls, a benefit in kind of €14.53
per month is estimated. Employers as well as employees are obliged to pay national insurance
contributions on this sum.
5 PERIODIC INSPECTION OF VEHICLES

Periodic inspections (§57a KFG) must be carried out annually. The cost in euros of the inspection (including
20% VAT) is as follows:
Types of vehicles Cost (€)
Passenger cars and station wagons (M1) 64.00
Taxis, rental cars 64.00
Lorries ≤ 3.5t (gross weight) 64.00
Lorries with two axles 144.00
Lorries with three axles 157.20
Lorries with four axles 194.40
Buses, coaches 156.00
Trailers ≤ 0.75t (gross weight), motorcycles 41.90
Trailers > 0.75t (gross weight) with two axles or more 72.00
Trailer > 0.75t (gross weight) with three axles or more 72.00
There is an additional administration fee of €1.90 for the inspection sticker.

New passenger cars and station wagons (M1) must be inspected after three years for the first time and
after other two years for the second time before starting an annual inspection frequency.
Buses and coaches for public transport must be checked – in addition to the yearly periodic inspections
(§57a KFG) – also every three months (for scheduled services) and every six months, in general carrying
out a basic safety check.

19
AUSTRIA
6 FEDERAL PURCHASE INCENTIVES AND PROMOTION PROGRAMME FOR THE PURCHASE

OF ZERO-EMISSION CARS/MOTORCYCLES AND OTHER VEHICLES (IN COOPERATION
WITH THE VEHICLE IMPORTERS)
A federal purchase incentive and promotion programme in cooperation with the Austrian vehicle importers
is granted to private persons, companies/businesses and communities for purchasing a new zero/low
emission vehicle (electric car, hydrogen car, fuel cell powered car, etc). In the ‘E-mobility-bonus-programme
202’ this financial aid is carried out mainly as a refund-bonus and is granted in addition to any price
reduction of the car dealer to the buyer:
Private persons
Vehicle type Vehicle category Importer’s financial Federal financial
promotion promotion
(€) (€)
BEV (100% Battery electric vehicle) M1, N1 2,000 3,000
FCEV (Fuel-cell electric vehicle - M1, N1 2,000 3,000
hydrogen)
PHEV (Plug-in hybrid electric M1, N1 1,250 1,250
vehicle)
EREV (Extended-range electric M1, N1 1,250 1,250
vehicle, Range extender / REX )
E-light motorcycles / E-motorbikes L1e 350 450
(eg Pedelecs)
E-motorcycles L3e 500 700
E-lightweight vehicles L2e, L5e, L6e, L7e – 1,300

20
AUSTRIA
Companies/businesses
Vehicle Vehicle type Vehicle category Importer’s financial Federal financial
promotion promotion
(€) (€)
E-passenger car BEV, FCEV M1 2,000 2,000
PHEV, REX, EREV M1 1,000 1,000
E-minibus M1 (min. 7+1 2,000 5,500
persons) > 2,0 and
≤ 2,5t
M1 (min. 7+1 2,000 10,500
persons) > 2,5 t
M2 2,000 22,000
E-light commercial BEV, FCEV N1 ≤ 2,0 t 2,000 2,000
cars (LCC) PHEV, REX, EREV N1 ≤ 2,0 t 1,000 1,000
N1 > 2,0 and ≤ 2,5 t 2,000 5,000
N1 > 2,5 to 2,000 10,000
E-light vehicles L2e, L5e, L6e, L7e – 1,300
E-motorcycles L1e 350 450
/motor bikes/bikes
(2-wheels) L3e 500 700
E-cargo bikes 150 850
E-bikes (min. 5 units) 150 250
E-trucks (E-heavy BEV, FCEV N2 2,000 22,000

duty vehicle)
BEV, FCEV N3 5,000 55,000
E-buses M3 (≤ 39 persons – 52,000

incl. driver)
M3 (40–120 persons – 78,000

incl. driver)
M3 (> 121 persons – 130,000

incl. driver)
E-special purpose – on request

vehicle
Additional purchase incentives are granted also by the provinces and communities in Austria.
Also loading infrastructure (public/private), intelligent charging cables, multimodal points are promoted as
well for private persons as well as companies/businesses and communities.
For further information see here https://www.umweltfoerderung.at.

21
03
ACEA TAX GUIDE 2021
Belgium
Chapter prepared by
Nadine Atanassoff
[email protected]
Michel Martens
[email protected]
FEBIAC
Belgian Federation of Automobile
and Motorcycle Industries
Boulevard de la Woluwe 46, box 6
BE — 1200 Brussels
T. +32 2 778 64 00
F. +32 2 762 81 71
www.febiac.be
BELGIUM
ENGINE RATINGS
PASSENGER CARS (CARS, MULTI-PURPOSE CARS (MPC) AND MINIBUSES)
The engine rating or horsepower (hp) of motor vehicles is determined by means of the formula below,
where cc stands for cylinder capacity in litres, and K for the coefficient that varies according to the
cylinder capacity of the engine:
hp = (4 × cc) + K
Cylinder capacity (l) Coefficient K Cylinder capacity (l) Coefficient K
≤ 0.9 1.50 2.4–2.6 3.25
1.0–1.2 1.75 2.7–3.3 3.50
1.3–1.5 2.00 3.4–3.9 3.75
1.6–1.7 2.25 4.0–4.9 4.00
1.8–1.9 2.50 5.0–5.9 4.50
2.0–2.1 2.75 ≥6 5.00
2.2–2.3 3.00
Resulting table (fiscal hp):

Cylinder capacity (cc) Fiscal hp Cylinder capacity (cc) Fiscal hp
≤ 750 4 3,951–4,150 20
751–950 5 4,151–4,350 21
951–1,150 6 4,351–4,650 22
1,151–1,350 7 4,651–4,850 23
1,351–1,550 8 4,851–5,050 24
1,551–1,750 9 5,051–5,250 25
1,751–1,950 10 5,251–5,550 26
1,951–2,150 11 5,551–5,750 27
2,151–2,350 12 5,751–5,950 28
2,351–2,550 13 5,951–6,150 29
2,551–2,750 14 6,151–6,350 30
2,751–3,050 15 6,351–6,650 31
3,051–3,250 16 6,651–6,850 32
3,251–3,450 17 6,851–7,150 33
3,451–3,650 18 7,151–7,350 34
3,651–3,950 19 7,350–7,550 35
VANS, TRUCKS, ARTICULATED GOODS VEHICLES, TRAILERS

The tax is assessed according to the weight of the vehicle. The taxable weight is that of an empty
vehicle in working order, that is, including the body, all attachments and accessories and a full tank of
fuel but without passengers or load.

23
BELGIUM
TAXES ON ACQUISITION
TAXES, CHARGES AND INCENTIVES ON VEHICLE ACQUISITION AT FEDERAL LEVEL
2.1.1 VAT in the context of the purchasing and selling of vehicles
The purchase of private cars and commercial vehicles is subject to VAT at the rate of 21%. VAT is
levied on the actual invoice price at the time of sale of the vehicle.
Whether or not VAT is due depends on the VAT liability of the seller and purchaser, the vehicle and
owner type, and the origin and destination of the vehicle. The different possible VAT schemes, as well
as whether or not the Tax on Entry into Service (TES) is due (see also section 2.2), are shown in the
tables below.
2.1.1.1 Purchase of a vehicle in Belgium by a person living in Belgium

Cars, minibuses, motorcycles, camping vehicles, light and heavy commercial vehicles, buses and coaches
State of vehicle Seller Purchaser VAT TES
New Anybody Anybody VAT to be paid in destination state Yes
Second-hand VAT-liable VAT-liable VAT to be paid in destination state Yes
VAT-liable Non-liable VAT to be paid in Belgium Yes
Non-liable Anybody No VAT due Yes
Trailers, semi-trailers, camping trailers

New or second-hand VAT-liable VAT-liable VAT to be paid in destination state No
VAT-liable Non-liable VAT to be paid in Belgium No
Non-liable Anybody No VAT due No
2.1.1.2 Purchase of a vehicle in Belgium by a person living in another EU member state

Cars, minibuses, motorcycles, camping vehicles, light and heavy commercial vehicles, buses and coaches
New Anybody Anybody VAT to be paid in destination state No
Second-hand VAT-liable VAT-liable VAT to be paid in destination state No

New or second-hand VAT-liable VAT-liable VAT to be paid in destination state No
2.1.1.3 Purchase of a vehicle in Belgium by a person living outside the EU

The purchase of a vehicle by a person not living in an EU member state is not subject to VAT on
condition that the Belgian dealer can prove that the vehicle was exported.

24
BELGIUM
2.1.1.4 Purchase of a vehicle in another EU member state by a person living in Belgium

New Anybody Anybody VAT to be paid in Belgium Yes
Second-hand VAT-liable VAT-liable VAT to be paid in Belgium Yes
VAT-liable Non-liable VAT to be paid in origin member state Yes
Non-liable Anybody No VAT due Yes
Light and heavy commercial vehicles, articulated vehicles

New Anybody Anybody VAT to be paid in Belgium No
Second-hand VAT-liable VAT-liable VAT to be paid in Belgium No
VAT-liable Non-liable VAT to be paid in origin member state No

New or VAT-liable VAT-liable VAT to be paid in Belgium No
second-hand VAT-liable Non-liable VAT to be paid in origin member state No
2.1.1.5 Purchase of a vehicle outside the EU by a person living in Belgium

The purchaser living in Belgium has to inform the dealer that the vehicle will be exported.
VAT exemptions
Taxable persons are entitled to deduct a maximum of 50% of the VAT paid on the purchase of cars
for professional use and on goods and services relating to them (see ‘VAT deductibility’ in section
4.4.1). The 50% deduction rate entitlement does not apply to:
• trucks, light commercials, buses and coaches;
• cars sold or hired in the course of the specific occupation of the sale or hiring of cars;
• vehicles adapted for exclusive use in the fare-paying transport of persons (taxis);
• specifically adapted cars, devoted exclusively to practical driving instruction within
approved driving schools.
The portion of non-deductible VAT may be treated as a general expense or may be written down by
100% at the same rate as the net realisable or resale value of these vehicles.
2.1.2 Registration plate

Since 1 January 2012, the price of a registration plate delivered by the Federal Public Service Mobility
and Transport is €30. The price for a personalised registration plate is €1,000.
2.1.3 Incentives for the acquisition of clean vehicles at federal level
Since 1 January 2013, the granting of environmental incentives has, in principle, no longer been
exercised at federal level. From that date onwards, the regions had to decide to grant incentives for
low-emissions cars. However, some federal incentives exceptionally remain effective until 2024 but
without annual indexation of the amounts:
• Personal Income Tax (PIT) reduction of 15% (to a maximum of €3,140) on the purchase price
of a powered two- or three-wheeler purchased by a private person and which is exclusively
powered by an electric motor, which can transport at least two persons and for which a driving
licence is needed
• PIT reduction of 15% (to a maximum of €5,150) on the purchase price of a powered four-
wheeler (no M1 cars) purchased by a private person and which is exclusively powered by an

25
BELGIUM
electric motor, which can transport at least two persons and for which a driving licence is
needed
TAXES, CHARGES AND INCENTIVES ON ACQUISITION AT REGIONAL LEVEL

A Tax on the Entry into Service (TES) or Taxe de mise en circulation (TMC) or Belasting op de
inverkeersstelling (BIV), is levied in Belgium on new and second-hand cars, minibuses and
motorcycles at the moment of their registration. The TES amounts (expressed in euros) apply to cars,
minibuses and motorcycles depending on their power (expressed in fiscal hp or kW) and age. They
are set out in the table below:
hp Up to 8 9 10 11 12 13 14 15 16 17 > 17
£ 1,550cc 1,551– 1,751– 1,951– 2,151– 2,351– 2,551– 2,751– 3,051– 3,251– > 3,450cc
1,750cc 1,950cc 2,150cc 2,350cc 2,550cc 2,750cc 3,050cc 3,250cc 3,450cc
kW Up to 70 71–85 71–85 86–100 101–110 101–110 101–110 111–120 121–155 121–155 > 155
New 61.50 123.00 123.00 495.00 867.00 867.00 867.00 1,239.00 2,487.00 2,487.00 4,957.00
vehicle
<1y 61.50 123.00 123.00 495.79 867.00 867.00 867.00 1,239.00 2,487.00 2,487.00 4,957.00
<2y 61.50 110.70 110.70 445.50 780.30 780.30 780.30 1,115.10 2,230.20 2,230.20 4,461.30
Vehicles which have been registered
<3y 61.50 98.40 98.40 396.00 693.60 693.60 693.60 991.20 1,982.40 1,982.40 3,965.60
<4y 61.50 86.10 86.10 346.50 606.90 606.90 606.90 867.30 1,734.60 1,734.60 3,469.90
<5y 61.50 73.80 73.80 297.00 520.20 520.20 520.20 743.40 1,486.80 1,486.80 2,974.20
<6y 61.50 61.50 61.50 272.25 476.85 476.85 476.85 681.45 1,362.90 1,362.90 2,726.35
<7y 61.50 61.50 61.50 247.50 433.50 433.50 433.50 619.50 1,239.00 1,239.00 2,478.50
<8y 61.50 61.50 61.50 222.75 390.15 390.15 390.15 557.55 1,115.10 1,115.10 2,230.65
<9y 61.50 61.50 61.50 198.00 346.80 346.80 346.80 495.60 991.20 991.20 1,982.80
< 10 y 61.50 61.50 61.50 173.25 303.45 303.45 303.45 433.65 867.30 867.30 1,734.95
< 11 y 61.50 61.50 61.50 148.50 260.10 371.00 371.00 371.00 734.40 734.40 1,487.10
< 12 y 61.50 61.50 61.50 123.75 216.75 216.75 216.75 309.75 619.50 619.50 1,239.25
< 13 y 61.50 61.50 61.50 99.00 173.40 173.40 173.40 247.80 495.60 495.60 991.40
< 14 y 61.50 61.50 61.50 74.25 130.05 130.05 130.05 185.85 371.70 371.70 743.55
< 15 y 61.50 61.50 61.50 61.50 86.70 86.70 86.70 123.90 247.80 247.80 495.70
≥ 15 y 61.50 61.50 61.50 61.50 61.50 61.50 61.50 61.50 61.50 61.50 61.50
If the power of one and the same engine, expressed in fiscal hp and in kW leads to two different TES
amounts, the higher amount is due.
The TES, as well as the related charges and incentives, are a competence of the regions. Some
aspects of the TES scheme are the same in the three regions; others differ from region to region (eg
a minimum tariff applies to battery electric vehicles (BEV) in Brussels-Capital and the Walloon Region,
whereas they are exempt from the TES in the Flemish Region).
2.2.1 Brussels-Capital Region

The TES scheme described in section 2.2 remains fully applicable in the Brussels-Capital Region.
Bruxell’air premium
Any person living in the Brussels-Capital Region who deregisters his/her licence plate and/or provides
the proof of the destruction of the vehicle will, under certain conditions, receive the Bruxell’air
premium (which may mean the mobility package, depending on the option chosen).
Under certain conditions, deregistration of the licence plate entitles a person to:
• a metro/tram/bus subscription for one year and a Cambio Star (car sharing system)
subscription for one year; or
• a bike premium and a Cambio Start subscription for one year.
Under certain conditions, a deregistration of the licence plate and the destruction of the vehicle
entitles a person to:
• a metro/tram/bus subscription for one year and a Cambio Start subscription for one year, both
renewable once; or
• a metro/tram/bus subscription for one year, a Cambio Start subscription for one year,
renewable once, and a bike premium; or

26
BELGIUM
• a Cambio Start subscription for one year, renewable once, and a double bike premium.
For more details, see: https://www.provelo.org/fr/page/bruxelles-prime-bruxell_air
Low Emission Zone (LEZ) premium
Following the introduction of a LEZ scheme (Low Emission Zone) on 1 January 2018, the most
polluting vehicles are prohibited in the Brussels-Capital Region. Year after year, the access conditions
become stricter. In this context, the Brussels-Capital Region wants to help micro and small companies
replace their old light commercial vehicles. This boost is reflected in a premium of up to €3,000.
Conditions for obtention are:
• be a micro (< 10 workers) or small company (10 to 49 workers) active in one of the admitted
sectors of activity;
• submit the premium request before signing any order form.
The investment must:

• have a link with the company's activities;
• be recorded as fixed assets in the annual financial statements (legal entities) or in the
depreciation table (natural persons);
• concern new property: second-hand vehicles are not allowed (with the exception of those
acquired from a professional whose activity involves the sale of such vehicles);
• certain types of investments are not allowed: lavish spending, export-related, rental, etc. The
vehicle to be replaced must be of N1 category (light commercial vehicles) and must be
registered in the Brussels-Capital Region (BCR).
Furthermore, the entitled vehicle must:

• from 1 January 2020 to 31 December 2021, be a Euro 4/IV standard diesel vehicle (prohibited
in BCR from 2022);
• from 1 January 2022 to 31 December 2024, be a Euro 5/V diesel vehicle or a Euro 2/II petrol
or natural gas vehicle (prohibited in BCR from 2025). Attention: in each period defined for the
application for a premium, the replaced vehicle must only be of the mentioned standard
The new vehicle:

• may not be powered by a diesel engine;
• must be of N1 category (light commercial vehicles);
• must be registered in the Brussels-Capital Region (except in the case of leasing);
• must be purchased for effective operation in the Brussels-Capital Region.
The premium consists of 20% of the eligible expenses with a maximum of €3,000 per vehicle replaced.
A company can benefit from a premium for a maximum of three vehicles per period.
For more details, see: https://www.lez.brussels/mytax/fr/alternatives?tab=Primes or

https://economie-emploi.brussels/prime-lez
Vehicle-related incentives to stimulate entrepreneurship in the Brussels Region

To stimulate entrepreneurship in the Brussels Region, people can apply for a premium for the
purchase of new commercial vehicles (N), trailers (O), special vehicles (S) and electric (powered)
cargo bikes and trailers, by introducing a solid business plan to start, expand or overtake a promising
micro, small and medium enterprise in specific activity sectors, and who commits engage to staying
for at least five years in the Region.
For more info, see: https://economie-emploi.brussels/prime-materiel-conditions

27
BELGIUM
2.2.2 Flemish Region

In the Flemish Region, there is a ‘green’ TES for private persons and for companies that do not lease
cars as part of their activities. Companies that carry out car-leasing activities remain subject to the
TES scheme described in section 2.2.
For other companies and private persons, the TES is calculated on a different basis: fuel, age,
Euronorm (the limit values of the different pollutants) and CO2 emissions of the car. This formula
applies to newly registered cars (new or second-hand).
For cars already registered in the EE (European Economic Area) before 1 January 2021, the formula
is as follows:
TES = [(NEDC CO2 × f + x)6 × 4,500 + c] × LC

246
Where:
The minimum TES amount is fixed at €40, the maximum at €10,000. These amounts are indexed with
the national consumer price index on 1 July of each year (they are €45.56 and €11,391.05 from
1 July 2020 to 30 June 2021).
f = fuel correction factor; f = 1, except for liquefied petroleum gas (LPG) (f = 0.88) and natural gas
(f = 0.93) and petrol and natural gas (f = 0.744)
x = CO2 correction factor; x = 0 in 2012 and increases by 4.5g CO2/km per year as from 2013 (= 31.5
in 2019; 36 in 2020, 40.5 in 2021)
LC = age correction factor, based on the age of the vehicle calculated from the date of its first entry
into service; LC = 100% when the vehicle’s age is less than 12 full months, and decreases by 10% per
extra 12 months of age until a minimum rate of 10% is reached (at an age of at least 108 months)
c = fixed price by Euronorm and fuel type, as shown in the table below:
Euronorm Amount for c Euronorm Amount for c
from 1 July 2020 from 1 July 2020
to 30 June 2021 (€) to 30 June 2021 (€)
Euro 0 3,106.80 Euro 0 1,235.69
Euro 1 911.48 Euro 1 552.62
Euro 2 Petrol, Euro 2
675.55 165.25
LPG and
Diesel Euro 3 535.34 natural gas Euro 3 103.66
Euro 3 with DPF 506.81 –
Euro 4 506.81 Euro 4 24.88
Euro 4 with DPF 498.44 –
Euro 5 498.44 Euro 5 22.36
Euro 6 492.71 Euro 6 22.36
Note: DPF, diesel particulate filter
For cars registered for the first time in the EEA (European Economic Area) as from 2021, the WLTP
CO2 emissions value is taken into account and a new formula is in place since 1 January 2021, using
the same variable values as mentioned above:
TES = [(WLTP CO2 × f × 1.07)6 × 4,500 + c] × LC

246
Exemption of TES remains only for exclusively electrically or hydrogen powered passenger cars.
Incentives for a retrofit DPF on Euro 3 and Euro 4 cars
The Flemish Government grants incentives to private and legal persons residing in the Flemish Region
for a retrofit DPF on Euro 3 and Euro 4 cars registered for the first time before

28
BELGIUM
3 September 2010 (ie the date of publication of the law): the incentive is 100% of the DPF purchase
and installation cost, with a maximum amount of €600.
Ecology Premium for green investments by companies
The Flemish Government grants a so-called Ecology Premium to companies that invest in
environmentally friendly and/or energy-efficient technologies, which are listed in a Limited
Technology List. This list is regularly reviewed and updated by the Flemish Administration for
Environment (last update on 20 August 2020).
The amount of the subsidy is determined by:

• the type of investment (environment, (renewable) energy (efficiency) or cogeneration);
• the size of the company (whether it is a small or medium-sized enterprise (SME) or not);
• the environmental performance/potential of the technology (expressed as ‘eco-classes’ and
‘ecology scores’); and
• the subsidy bonus (as a percentage of the investment amount that can be taken into account).
The table below (last update on 20 August 2020) shows the automotive-related technologies and
investments that qualify for the Premium, as well as the conditions under which they qualify:
Limited Technology List: Eco-class Ecology Additional Premium Premium
automotive-related technology score investment for SME for large
cost (%) enterprise
considered (%) (%)
Fuel-cell transport system B 6 65 30 15
Transformation from ICE to hydrogen engine B 6 100 30 15
(off-road vehicles included)
New CNG light duty vehicles B 6 20 30 15
(monofuel or dual fuel)
New CNG trucks (monofuel, maximum investment A 9 30 50 40
amount of €100,000)
New LNG trucks A 9 40 50 40
(maximum investment amount of €120,000)
New dual fuel trucks (> 90% LNG; < 10% diesel) A 9 40 50 40
(maximum investment amount of €120,000)
Transformation from ICE to CNG/LNG engine for B 6 100 30 15
trucks
Fuelling infrastructure for LNG A 9 80 50 40
Fuelling infrastructure for LNG & CNG A 9 80 50 40
Fuelling infrastructure for hydrogen with a A 9 90 30 15
maximum of €2m per fuelling infrastructure
Example:
Ecology premium for €50,000 fuel-cell vehicle purchased by an SME:
65% × €50,000 × (30% for SME) = €9,750
Subsidy requests can only be made electronically via: https://www.vlaanderen.be/ecologiepremie-

plus-voor-ondernemingen.
2.2.3 Walloon Region

The TES scheme described in section 2.2 remains fully applicable in the Walloon Region, but since
1 January 2014, private and legal persons (except companies with leasing activities) residing in the
Walloon Region and purchasing a car have also been subject to a CO2-based Ecomalus scheme in
addition to the TES scheme.
The Ecomalus range starts from 146g CO2/km; penalties start from €100 and gradually increase to
€2,500 (from 256g/km). The conversion table is as follows:

29
BELGIUM
Registration of a new or second-hand car

CO2 (g/km) ≤ 145 146– 156– 166– 176– 186– 196– 206– 216– 226– 236– 246– > 255
155 165 175 185 195 205 215 225 235 245 255
Tariff (€) 0 100 175 250 375 500 600 700 1,000 1,200 1,500 2,000 2,500
For cars for which CO2 values are unknown, the CO2 value will be assumed to be 205g/km for petrol
cars and 196g/km for diesel cars.
Some malus compensation is granted to large families and for cars powered by LPG or alternative
powertrains:
• Large families with three children are granted an upward category shift of 10g (malus starts
from 156g instead of 146g); for four children or more, a shift of two categories, or 20g, is applied
(malus starts from 166g instead of 146g)
• For LPG cars, malus starts from 156g (the 10g or 20g advantage for large families is granted
in addition to this (eg LPG + three children = malus starts from 166g; LPG + four children =
malus starts from 176g)
As to whether NEDC or WLTP CO2 values have to be used in the Ecomalus scheme, the Walloon fiscal
administration considers that in case the Certificate of Conformity of a car mentions a NEDC CO2 test
value, this NEDC value will be used as the basis to verify if an Ecomalus is due or not.
TAXES ON OWNERSHIP
TAXES ON OWNERSHIP AT FEDERAL LEVEL
As to whether NEDC or WLTP CO2 test values have to be used in the federal taxation schemes
described below, the Federal Finance Administration applies the following rules:
• CO2 NEDC 1.0 if the vehicle only has an NEDC value

• CO2 WLTP if the vehicle only has a WLTP value
• CO2 NEDC 2.0 or CO2 WLTP (free choice) if the vehicle has both NEDC and WLTP values
These rules remain applicable until new federal legislation comes in place.
CO2-based ‘solidarity contribution’ for company cars
Since 1 January 2005, employers have had to pay a ‘solidarity contribution’ (cotisation de solidarité;
solidariteitsbijdrage) for company cars and light-duty vehicles (M1 and N1) if they allow private use of
these vehicles by their employees.
The monthly contribution amount in euros is based on the CO2 emissions of the vehicle and computed
as follows:
• Petrol vehicles: [(Y × 9) – 768] ÷ 12
• Diesel vehicles: [(Y × 9) – 600] ÷ 12
• LPG vehicles: [(Y × 9) – 990] ÷ 12
Y = CO2 emissions expressed in g/km.
For 2021, the amounts must have been indexed by 1.3222 and will in any case never be lower than
€27.54 per month.

30
BELGIUM
TAXES ON OWNERSHIP AT REGIONAL LEVEL

Vehicle ownership taxes are a competence of the regions. Until further notice, the basis and amounts
for ownership taxes are more or less the same in the three regions.
Basis of ownership taxes

Private vehicles engine rating
Coaches and buses engine rating
Commercial vehicles deadweight
3.2.1 Ownership taxes for cars, multipurpose cars and minibuses (M1)
Annual circulation tax (ACT) is based on engine rating and is yearly adjusted to take into account retail
price fluctuations. This indexation is made on 1 July of each year, with reference to the variation of
the retail price index from May of the preceding year to May of the year in question. The table below
shows the ACT amounts valid from 1 July 2020 to 30 June 2021:
cc Fiscal hp ACT in Flemish Region (€) ACT in Walloon & Brussels Regions (€)
≤ 750 4 83.95 83.95
751–950 5 105.07 105.07
951–1,150 6 151.93 151.93
1,151–1,350 7 198.40 198.40
1,351–1,550 8 245.39 245.39
1,551–1,750 9 292.38 292.38
1,751–1,950 10 338.71 338.71
1,951–2,150 11 439.56 439.56
2,151–2,350 12 540.41 540.41
2,351–2,550 13 640.99 640.99
2,551–2,750 14 741.84 741.84
2,751–3,050 15 842.69 842.69
3,051–3,250 16 1,103.78 1,103.78
3,251–3,450 17 1,365.01 1,365.01
3,451–3,650 18 1,626.37 1,626.37
3,651–3,950 19 1,886.94 1,886.94
3,951–4,150 20 2,148.30 2,148.30
4,151–4,350 21 2,265.52 2,265.52
4,351–4,650 22 2,382.73 2,382.73
4,651–4,850 23 2,499.95 2,499.95
for each additional unit of
117.08 117.22
fiscal hp above 23
An additional ACT is levied on LPG vehicles to compensate for the abolition of excises on LPG fuel.
This ACT amounts to:
• €89.16 for 1 to 7 fiscal hp
• €148.68 for 8 to 13 fiscal hp
• €208.20 for 14 and over fiscal hp
These LPG amounts are not indexed and nor are they subject to municipal taxes.
Since 1 January 2016, the Flemish Region applies an environmental correction on the ACT for private
persons and companies that do not lease cars as part of their activities. The correction applies to
newly registered cars (new or second-hand). Cars already registered remain out of scope. The ACT
(based on fiscal hp; see table above) is increased or decreased depending on CO2 emissions, fuel
type and Euronorm of the vehicle. Correction schemes apply as follows:

31
BELGIUM
a) CO2 correction for vehicles already registered in the EEA before 1 January 2021. The ACT base
amounts are:
• increased by 0.3% per g CO2/km NEDC above 122g/km up to a maximum of 500g/km;
• decreased by 0.3% per g CO2/km NEDC below 122g/km with a minimum of 24g/km.
CO2 correction for vehicles registered for the first time in the EEA since 1 January 2021. The ACT
base amounts are:
• increased by 0.3% per g CO2/km WLTP above 149g/km up to a maximum of 500g/km;
• decreased by 0.3% per g CO2/km WLTP below 149g/km with a minimum of 24g/km.
b) Depending on the Euronorm (+ DPF – particulate filter) and fuel type, the ACT base tariff is
increased or decreased by a percentage as follows:
Euronorm Petrol and other fuels (%) Diesel (%)

Euro 0 +30.0 +50.0
Euro 1 +10.0 +40.0
Euro 2 +5.0 +35.0
Euro 3 0.0 +30.0
Euro 3 + DPF – +30.0
Euro 4 -12.5 +25.0
Euro 4 + DPF – +17.5
Euro 5 -15.0 +17.5
Euro 6 -15.0 +15.0
The minimum ACT is indexed on 1 July of each year. From 1 July 2020 to 30 June 2021, the minimum
ACT amount in the Flemish Region is at €47.74. LPG-powered cars receive a rebate of €108.48 (also
indexed each year).
Since 1 January 2021, only fully electric and hydrogen-powered passenger cars remain exempt from
ACT.
3.2.2 Ownership taxes for commercial vehicles
3.2.2.1 Buses and coaches (M2, M3)
For vehicles M2 and M3, a specific method based on the fiscal hp applies. In practice, this is a rather
complicated formula in which two calculations are performed and the lowest hp applies.
When the taxable power does not exceed 10 fiscal hp, the tax is fixed at €4.44 per hp with a minimum
amount of €82.29 in the Flemish Region and €82.30 in Brussels-Capital and Walloon Region.
When the taxable power exceeds 10 fiscal hp, the tax rate per hp applicable to the fully taxable power
is €4.44, plus €0.24 per hp over 10, with a maximum of €12.48 per hp.
See also: https://belastingen.vlaanderen.be/VKB_tarief-autobussen-en-autocars
Under the terms of a permit for the operation of coaches and buses, municipal tax does not apply to
vehicles used exclusively for the fare-paying transportation of passengers.
3.2.2.2 Light Commercial Vehicles (LCV) up to 3,500kg MPW (N1)
Brussels-Capital and Walloon Region
ACT, based on the maximum permissible weight (MPW), is fixed at €19.32 for every 500kg, with a
minimum of €34.62 (excluding 10% municipal tax) or €38.08 (including 10% municipal tax).

32
BELGIUM
MPW (kg) ACT amount (€) ACT amount (€)

(excl. of 10% municipal tax) (incl. of 10% municipal tax)
≤ 500 34.62 38.08
501–1,000 38.64 42.50
1,001–1,500 57.96 63.76
1,501–2,000 77.28 85.01
2,001–2,500 96.60 106.26
2,501–3,000 115.92 127.51
3,001–3,500 135.24 148.76
Flemish Region
The Flemish Government has introduced, as from 1 July 2017, an environmental correction on the
LCV’s base ACT amount for private and legal persons who do not lease cars as part of their activities.
The new formula applies to newly registered LCVs (new or second-hand). LCVs already registered
remain out of scope. Pure electric LCVs will be exempted with no time limit.
As from 1 July 2018, the basic rate is €21.52 by every 500kg (inclusive municipal tax) with a minimum
tax of €44.80.
3.2.2.3 Light commercial vehicles (LCV) with ≤ 2.5t MPW – Flemish Region
The ACT (based on MPW; see the table above) is increased or decreased depending on CO2
emissions, fuel type and Euronorm of the vehicle. Correction schemes apply as follows:
a) CO2 correction for vehicles already registered in the EEA before 1 January 2021. The ACT base
amounts are:
• increased by 0.3% per g CO2/km NEDC above 122g/km up to a maximum of 500g/km;
• decreased by 0.3% per g CO2/km NEDC below 122g/km with a minimum of 24g/km.
CO2 correction for vehicles registered for the first time in the EEA since 1 January 2021. The ACT
base amounts are:
• increased by 0.3% per g CO2/km WLTP above 149g/km up to a maximum of 500g/km;
• decreased by 0.3% per g CO2/km WLTP below 149g/km with a minimum of 24g/km.
b) Depending on the Euronorm (plus DPF standards; minus particulate filter) and fuel type, the ACT
tariff is increased or decreased by a percentage as follows:
Euronorm Petrol and other fuels (%) Diesel (%)

Euro 0 +30.0 +50.0
Euro 1 +10.0 +40.0
Euro 2 +5.0 +35.0
Euro 3 0.0 +30.0
Euro 4 (or Euro 3 + DPF) -12.5 +25.0
Euro 5 (or Euro 4 + DPF) -15.0 +17.5
Euro 6 -15.0 +15.0

33
BELGIUM
3.2.2.4 Light commercial vehicles (LCV) with 2.5t < MPW ≤ 3.5t – Flemish Region
Euronorm Petrol, diesel and other fuels (%)
Euro 0 +35.0
Euro 1 +25.0
Euro 2 +20.0
Euro 3 +15.0
Euro 4 (or Euro 3 + DPF) +10.0
Euro 5 (or Euro 4 + DPF) +2.5
Euro 6 0.0
The minimum ACT amount is fixed at €44.80. Exempt from ACT (only in the Flemish Region) are fully
electric and hydrogen-powered LCV.
3.2.2.5 Trailers up to 3,500kg MPW (valid until 30 June 2021)

MPW (kg) ACT amount (€) ACT amount (€)
(excl. 10% municipal tax) (incl. 10% municipal tax)
≤ 500 35.64 39.20
501–3,500 74.16 81.58
3.2.2.6 Heavy commercial vehicles (HCV) exceeding 3,500kg (N2, N3) and combinations for the
transport of goods submitted to the kilometre charging scheme
Since the introduction of the kilometre charging scheme in Belgium on 1 April 2016, vehicles with a
MPW exceeding 3.5t and less than 12t, and which are submitted to the kilometre charging scheme
(those not submitted: see section 3.2.2.7) no longer pay ACT.
For vehicles with a MPW of at least 12t, the ACT is based on tables considering the MPW, the number
of axles and the kind of suspension (pneumatic or not).
In the case of a solo vehicle, the MPW to be considered equals its own MPW. In the case of a
combination vehicle, the MPW equals the sum of all the MPWs of the combination.
The ACT amounts are as follows:
MPW (kg) With pneumatic suspension (€) With other type of suspension (€)
SOLO VEHICLE
1 or 2 axles
from to
3,501 11,999 0.00 0.00
12,000 12,999 0.00 31.00
13,000 13,999 31.00 86.00
14,000 14,999 86.00 121.00
≥ 15,000 121.00 274.00
3 axles
3,501 11,999 0.00 0.00
12,000 16,999 31.00 54.00
17,000 18,999 54.00 111.00
19,000 20,999 111.00 144.00
21,000 22,999 144.00 222.00
23,000 24,999 222.00 345.00
≥ 25,000 222.00 345.00
4 axles
3,501 11,999 0.00 0.00
12,000 24,999 144.00 146.00
25,000 26,999 146.00 228.00
27,000 28,999 228.00 362.00
29,000 30,999 362.00 537.00
≥ 31,000 362.00 537.00

34
BELGIUM
COMBINATION VEHICLE
1 + 1 or 2 + 1 axles
3,501 15,999 0.00 0.00
16,000 17,999 0.00 14.00
18,000 19,999 14.00 32.00
20,000 21,999 32.00 75.00
22,000 22,999 75.00 97.00
23,000 24,999 97.00 175.00
≥ 25,000 175.00 307.00
2 + 2 axles
3,501 11,999 0.00 0.00
12,000 24,999 30.00 70.00
25,000 25,999 70.00 115.00
26,000 27,999 115.00 169.00
28,000 28,999 169.00 204.00
29,000 30,999 204.00 335.00
31,000 32,999 335.00 465.00
33,000 35,999 465.00 706.00
≥ 36,000 465.00 706.00
2 + 3 axles
3,501 11,999 0.00 0.00
12,000 37,999 370.00 515.00
≥ 38,000 515.00 700.00
3 + 1 or 3 + 2 axles
3,501 11,999 0.00 0.00
12,000 37,999 327.00 454.00
38,000 39,999 454.00 628.00
≥ 40,000 628.00 929.00
3 + 3 axles
3,501 11,999 0.00 0.00
12,000 37,999 186.00 225.00
38,000 39,999 225.00 336.00
≥ 40,000 336.00 535.00
3.2.2.7 Heavy commercial vehicles (HCV) exceeding 3,500kg (N2, N3) and less than 12t and
combinations for the transport of goods not submitted to the kilometre charging scheme
Some vehicles with a MPW of at least 12t are not submitted to the kilometre-charging scheme:
• Army, fire-fighters, police, civil defence vehicles, ambulances and other vehicle of essential
public works
• Vehicles exclusively used for agriculture, horticulture, fish farming and forestry
In addition, some categories are not included in the scope of the kilometre charge:
• Vehicles that can be considered as tools: see the exhaustive list on https://www.viapass.be/
• Old timers with an ‘O’ type license plate, training and test vehicles with a ‘ZZ’ type test plate
For the vehicles exceeding 3.5t and less than 12t, the ACT amounts are as follows:
MPW (kg) With pneumatic suspension (€) With other type of suspension (€)
SOLO VEHICLE
1 or 2 axles
from to
3,501 3,999 59.97 74.96
4,000 4,999 74.96 97.30
5,000 5,999 89.94 112.44
6,000 6,999 104.93 131.19
7,000 7,999 119.23 149.93
8,000 8,999 134.68 168.37

35
BELGIUM
9,000 9,999 149.68 187.11

10,000 10,999 164.68 205.85
11,000 12,000 179.67 224.59
3 axles
3,501 12,000 209.67 299.55
4 axles
3,501 12,000 248.44 414.08
COMBINATION VEHICLE
1 + 1 or 2 + 1 axles
3,501 3,999 59.97 74.96
4,000 4,999 74.96 97.30
5,000 5,999 89.94 112.44
6,000 6,999 104.93 131.19
7,000 7,999 119.23 149.93
8,000 8,999 134.68 168.37
9,000 9,999 149.68 187.11
10,000 10,999 164.68 205.85
11,000 12,000 179.67 224.59
2 + 2 axles
3,501 12,000 260.26 449.48
2 + 3 axles
3,501 12,000 471.00 648.79
3 + 1 or 3 + 2 axles
3,501 12,000 429.20 648.79
3 + 3 axles
3,501 12,000 286.07 648.79
TAXES ON MOTORING
FUEL TAXES
The sale price of fuel is made up of two elements: the basic price and taxation. The maximum sale
price is changed two or three times per month, upwards or downwards, in compliance with the
contract between the oil companies and the government.
4.1.1 Excise duties
Excise duties are charges imposed on the domestic consumption of certain products and are levied
at the time of production or importation.
Excise duty is €0.6002/l for unleaded Eurosuper (95 RON (research octane number) and 98 RON). For
diesel fuel, the duty is also now €0.6002/l. LPG is not subject to excise duties; however, vehicles
equipped for LPG are subject to a higher road tax (see section 3.2.1).
4.1.2 VAT
Fuel is subject to VAT at the rate of 21%. VAT is due both on product and excises.
4.1.3 Total taxation
The taxation of fuel at present (as from 1 January 2019) is summarised as follows:
Excise duty (€/l) VAT (%)
Unleaded (95) 0.6002 21
Unleaded (98) 0.6002 21
Diesel fuel 0.6002 21
LPG – 21

36
BELGIUM
Maximum price in €/l on 13 March 2021

EUROSUPER EUROSUPER Diesel2 (€) LPG (€)
unleaded 95 E101 (€) unleaded 98 E10 (€)
Cost of the product 0.4601 0.4872 0.4439 0.3079
Distribution costs 0.1807 0.1807 0.1844 0.1976
Excises + energy tax (1) 0.6002 0.6002 0.6002 0.00
Other fees 0.0072 0.0072 0.0076 0.00
Price without VAT 1.2482 1.2753 1.2361 0.5055
VAT: 21% (2) 0.2621 0.2678 0.2596 0.1062
(1) + (2) 0.8481 0.8634 0.8677 0.0906
(57.1%) (56.3%) (57.5%) (17.4%)
Price at the pump 1.510 1.543 1.496 0.612
Source: Belgian Petroleum Federation
INSURANCE TAXES
Subscription to a third-party insurance policy is mandatory before a vehicle may be entered into
service. As the registration of a vehicle is conditional on third-party cover, the application should be
stamped and signed by the insurer, thereby certifying the purchase of a policy.
Insurance policies are subject to an annual 9.25% tax. To this specifically fiscal tax, significant
parafiscal charges should be added. The state therefore collects:
• 7.5% for the Occupational Rehabilitation Fund for the Disabled;

• 0.25% for the Red Cross; and
• 10% for the INAMI (National Institute for Sickness Disability Insurance).
The total charge is thus 27%.
The various ‘car insurance’ charges (so-called omnium) do not include the 0.25% Red Cross tax. The
final total charge therefore amounts to 26.75%.
KILOMETRE-CHARGING FOR HEAVY COMMERCIAL VEHICLES (HCV)

As a kilometre charging scheme applies in Belgium since 1 April 2016 for HCVs with a maximum
permissible weight (MPW) of more than 3.5t, the Eurovignette scheme, based on EC Directive 93/89,
does not apply anymore for these vehicles .
The tariffs for toll roads have been fixed by the governments of the regions. They have been fixed
based on three parameters:
• MPW: the kilometre charge is due for trucks with a MPW of more than 3.5t. When the pulling
vehicle has a MPW of more than 3.5t, the MPW of the combination (MPWC) needs to be
declared (the trailer is included when the truck is equipped with a tow bar)
• Euronorm
• Type of toll road: all roads in Belgium are toll roads; most of the local and regional roads are
charged at a zero tariff; the main road network has a paying tariff. Toll roads map can be found
here: https://www.viapass.be/en/downloads/
1As from 1 January 2017, Eurosuper unleaded 95 E10 is available in Belgium and replaces Eurosuper unleaded 95, the latter
may not be sold anymore. The unleaded 95 E10 is unleaded 95 mixed with maximum 10% of bio-ethanol. Petrol vehicles which
are (possibly) not compatible with the 95 E10, are recommended to use the unleaded 98.
2 Diesel B7, which may contain up to 7% FAME (Fatty Acid Methyl Ester). Maximum 10ppm sulphur

37
BELGIUM
Tariffs in €/km (as from 1 January 2019)

Wallonia (without VAT) (€) Flanders and Brussels Brussels inner-city roads (€)
motorways (€)
3.5─12t 12─32t > 32t 3.5─12t 12─32t > 32t 3.5─12t 12─32t > 32t
Euro 0 0.157 0.210 0.214 0.122 0.208 0.234 0.122 0.208 0.234
Euro 1 0.157 0.210 0.214 0.122 0.208 0.234 0.122 0.208 0.234
Euro 2 0.157 0.210 0.214 0.122 0.208 0.234 0.122 0.208 0.234
Euro 3 0.135 0.188 0.192 0.101 0.187 0.213 0.101 0.187 0.213
Euro 4 0.102 0.155 0.159 0.068 0.154 0.180 0.068 0.154 0.180
Euro 5 0.080 0.133 0.137 0.056 0.142 0.168 0.056 0.142 0.168
Euro 6 0.080 0.133 0.137 0.046 0.132 0.157 0.046 0.132 0.157
Only a very limited number of vehicle categories are exempted from the kilometre-charge:
• Vehicles of the army, the fire brigade and the civil protection service and ambulances
• Tractors solely used for agriculture, forestry, horticulture and aquaculture
Every HCV who wants to use the toll road network, must be equipped with an on-board unit (OBU)
from a distribution point or services provider. Those who have not paid, or who commit fraud on the
toll roads, are tracked down using enforcement equipment. Those in breach of toll regulations receive
a penalty or can be intercepted by a mobile enforcement team and required to meet regulations
immediately. More information can be found on the following website: https://www.viapass.be/en/
DEDUCTIBILITY SCHEMES FOR CAR-RELATED EXPENSES

As to whether NEDC or WLTP CO2 test values have to be used in the federal taxation schemes
described below, the Federal Finance Administration applies following rules:
• CO2 NEDC 1.0 if the vehicle only has an NEDC value

• CO2 WLTP if the vehicle only has a WLTP value
• CO2 NEDC 2.0 or CO2 WLTP (free choice) if the vehicle has both NEDC and WLTP values
These rules remain applicable until new federal legislation becomes in place.
4.4.1 Deductibility of car-related expenses in the context of corporate income tax

The deductibility of company car expenses from corporate income applies to cars, multipurpose cars
and minibuses other than those exclusively used for paying transport of passengers. The following
cars are not included:
• Vehicles exclusively used as taxis or for self-drive hire

• Vehicles used for driving lessons via driving schools
• Vehicles exclusively leased to third parties
Mobile telephone in-car equipment and financing interests remain 100% deductible.
The deductibility of other expenses related to the use of a company car and fuel is computed
according to the vehicle’s CO2 emissions.
Since 1 January 2020, one new deductibility formula for fuel costs and car costs applies to all
company cars:
Deductible % = 120% - (0.5% × g CO2/km × f) with max 100% & min 50% (*)
with f = 1.0 for diesel

= 0.9 for CNG ≤ 11 fiscal hp
= 0.95 for other fuels/powertrains (also (plug-in) hybrid diesel)
(*) If the result of the computation > 100%, then the deductible % = 100%
If the result of the computation < 50%, then the deductible % = 50%

38
BELGIUM
For cars with 200g CO2/km or more, the deductible % can never be lower than 40%
A specific scheme applies to plug-in hybrid vehicles (PHEV): these vehicles can apply the above-
mentioned formula if two conditions are met:
• CO2 emissions ≤ 50 g/km NEDC
• Energy capacity of the battery must be at least 0.5kWh (0.45 due to the rounding rule) per
100kg of vehicle weight (in running order).
If one of the two conditions are not met, the PHEV is considered a ‘fake hybrid’ and the CO2 value of
the corresponding vehicle must be used. In order to be considered a corresponding vehicle, several
conditions must be met:
• Use the same fuel as the PHEV (section of the certificate of conformity – CoC 26)
• Be of the same brand (CoC 0.1)
• Be of the same model (CoC 0.2.1)
• Be of the same bodywork type (CoC 38)
There is an additional sine qua non condition: the ratio between the power of this corresponding
model and the power of the PHEV vehicle (ie kW corresponding vehicle (CoC 27.1) / kW PHEV (CoC
27.1)), must be closest to 1 and must be between 0.75 and 1.25. Models whose power ratio is outside
this range cannot be considered as corresponding vehicles.
If more than one model qualifies as a corresponding vehicle, the model with the highest CO2 value
must be used for the calculation of the benefit in kind (BIK) and the deductibility of car and fuel cost
expenses (as from 1 January 2020).
A list of ‘fake hybrids’ corresponding vehicles (for PHEV currently put on the Belgian market) can be
found here: https://finances.belgium.be/fr/faq/faux-hybrides#q1
The non-deductible percentage of the expenses have to be included in the company’s taxable profits
as disallowed expenses and are subject to corporate tax.
4.4.2 VAT deductibility
Taxable persons are entitled to deduct a maximum of 50% of the VAT paid on the purchase of cars
for professional use and on goods and services relating to them. There are four methods for
calculating deductibility (to be chosen by the company):
Method 1 (‘real professional use’): based on the following formula:
Deductibility % (max 50%) = (total km - home–work km - private km)/year

total km/year
Method 2 (‘semi-lump sum method’): the number of working days and the private kilometres are fixed
by the VAT Administration:
Deductibility % (max 50%) = [1 - (200 days × home-work distance × 2) + lump sum 6,000 private km]
total km/year
Method 3 (‘lump-sum method’): deductibility is fixed at 35% for a period of 4 years.
Method 4: applied to light commercial vehicles (LCVs) for which the regular deduction of 100% for an
LCV must be limited because of private use. Here, two options are possible:
1) Method 1 for cars
2) Fixed rate of 85% deductibility (on the condition that the LCV is mainly used for the transport
of goods for professional economic activity)

39
BELGIUM
4.4.3 VAT deductibility of work-related car expenses of a private person in the context of personal
income tax
This deductibility scheme applies only to cars, multipurpose cars and minibuses used by employees.
Every employee is entitled to deduct a lump sum of general expenses related to their work, thus also
of expenses related to work-related car use.
An individual can also opt for deduction of real car expenses related to their work. Two expense
categories exist:
• Expenses related to commuter trips: these are fixed at €0.15/km
• Expenses related to work trips: these are deductible at 75%
Both expense categories are considered to cover costs related to the depreciation of the car and its
accessories, to fuel and maintenance, to insurance and taxes, car washing, parking and garage hire,
etc. The expenses that remain 100% deductible are:
• financing costs related to the purchase, leasing of renting of the car;
• costs related to mobile phone equipment.
The 100% deductibility rate also applies to the following vehicle types:
• Vans, trucks, trailers, buses and coaches
• Cars sold or hired in the course of the specific occupation of the sale or hiring of cars
• Vehicles used for the fare-paying transport of persons (taxis) or for self-drive hire
• Vehicles exclusively rented out to third parties
The registration tax (see also section 2.2) is not deductible, but 75% of this amount is allowed as a
general expense and may be amortised in proportion to the net realisable or resale value of these
vehicles. The vehicles subject to the personal income tax have to follow the new deductibility rules of
the corporate income tax (see also section 4.4.1).
4.4.4 Disallowed expenses due by an employer for the private use of a company car by an
employee
Additional disallowed expenses are due by an employer who puts a company car at the disposal of
an employee who may use the vehicle for private purposes, and these expenses have to be included
in the company’s taxable profits. The disallowed expenses related to the BIK are calculated as follows:
If the employer does not pay at all for fuel costs related to the private use of the company car:
• Diesel: yearly disallowed expenses = 17% × [yearly BIK for diesel cars]
• Petrol: yearly disallowed expenses = 17% × [yearly BIK for petrol, LPG or natural gas cars]
If the employer pays, at least partially, for fuel costs related to the private use of the company car (eg
via the granting of a fuel card):
• Diesel: yearly disallowed expenses = 40% × [yearly BIK for diesel cars]
• Petrol: yearly disallowed expenses = 40% × [yearly BIK for petrol, LPG or natural gas cars]
BENEFITS IN KIND FOR EMPLOYEES FOR THE PRIVATE USE OF A COMPANY CAR
For employees using a company car for both private and business purposes, the tax system leaves it
up to the individual to decide whether or not the user will reimburse the company for the private use
of the car. When there is no reimbursement, the private usage is regarded as a benefit in kind (BIK).
This amount has to be added to other income of the party concerned.
It’s important to note that the concept of a ‘company car’ must be seen as a whole and therefore
include fuel and repairs expenses. Since 1 January 2012, the BIK calculation has been based on the
list price (catalogue price), CO2 emissions (choice between NEDC and WLTP test values if both are
available, until further notice (choice between NEDC or WLTP test values if both are available until 31
December 2020), fuel type and age of the car. The new formula for the BIK for employees is as follows:
Diesel cars: yearly BIK = [(list value × age correction factor) × (5.5% + (0.1% × (CO2 – XX)))] × 6 ÷ 7

40
BELGIUM
Petrol cars: yearly BIK = [(list value × age correction factor) × (5.5% + (0.1% × (CO2 – YY)))] × 6 ÷ 7
Where:
List value = the list price (catalogue price) of the vehicle in new condition as if it were sold to a private
person, including options and the VAT actually paid, without any rebate, reduction or discount
CO2 reference values: XX and YY
For 2012: XX = 95g/km YY = 115g/km
For 2013: XX = 95g/km YY = 116g/km
For 2014: XX = 93g/km YY = 112g/km
For 2015: XX = 91g/km YY = 110g/km
For 2016: XX = 89g/km YY = 107g/km
For 2017: XX = 87g/km YY = 105g/km
For 2018: XX = 86g/km YY = 105g/km
For 2019: XX = 88g/km YY = 107g/km
For 2020: XX = 91g/km YY = 111g/km
For 2021: XX = 84g/km YY = 102g/km
5.5% = the CO2 basic rate; XX g/km are CO2 emissions for diesel cars and YY g/km for petrol cars.
When the CO2 emissions are higher than the CO2 reference value, the CO2 basic rate is increased by
0.1% per gram of CO2, to a maximum of 18%.
When the CO2 emissions are lower than the CO2 reference value, the CO2 basic rate is decreased by
0.1% per gram of CO2, with a minimum of 4%. For 2021, the BIK may not be lower than €1,370 per
year.
Age correction factor is calculated following the table below:
Period since the first registration of the vehicle (one % of the catalogue value to be considered
month started counts for a whole month) when calculating the BIK
0–12 months 100
13–24 months 94
25–36 months 88
37–48 months 82
49–60 months 76
≥ 61 months 70
MOBILITY ALLOWANCE AND MOBILITY BUDGET: TWO ALTERNATIVES TO THE COMPANY CAR
To reduce the number of company cars with allowed private use made available by the employers for
their employees in Belgium, the Federal government has introduced two alternative instruments which
benefit from at least the same tax and social security treatment as the company car.
4.6.1 ‘Mobility budget’

The main objective of the mobility budget is to offer the employee more sustainable transport options
than his/her current company car – or the entitlement to it – by means of a number of environmentally
friendly and cheaper alternatives. As in the case of the mobility allowance, employers are free to
implement or not a mobility budget scheme in their organisation, and if they do so, their employees
who (are entitled to) have a company car at their disposal, have free choice to exchange or not their
company car for a mobility budget. Those who decide so, receive a mobility budget which may consist
of one or more of the following three pillars:
Pillar 1: More environmentally friendly company car than the previous one:
• ≤ 105g CO2/km in 2019; ≤ 100g CO2/km in 2020; ≤ 95g CO2/km in 2021
• At least Euro6d-TEMP
• Budget for the new car ≤ budget of the replaced company car
and/or

41
BELGIUM
Pillar 2: Sustainable transportation modes and services:

• Soft mobility like monowheel, step, (electric) bicycle, etc (purchase, rental, leasing,
maintenance, mandatory equipment)
• Electric motorcycle
• Public transport (home-work subscriptions + tickets) + collective transport
• Carpooling, car sharing with 2, 3, 4 wheels including fleet or particular
• Taxi and car rental with driver
• Car rental without driver ≤ 30 days/year
• Expenses related to the acquisition or renting of a residence located within 5km from the
usual workplace
and/or
Pillar 3: Unused budget left, if any: cash taxed at 38.07% for the social security contributions due by
the employee.
The mobility budget amount is equal to the total cost of ownership (TCO) on an annual basis that the
employer bears for financing the company car and all related costs (fuel, insurance, maintenance,
taxes, non-deductible VAT, etc).
The conditions are the same as for the mobility allowance: the employee must have had a company
car (or is entitled to have one but has not exercise that right) for at least 12 months in the past three
years of which at least three months must be before the exchange application.
The tax treatment of the three pillars are as follows:
Pillar 1: More environmentally friendly company car:

• A solidarity contribution (based on CO2 emissions) due by the employer (choice between
NEDC and WLTP test values if both are available, until further notice)
• Personal income taxes on the BIK of the company car due by the employee
Pillar 2: Sustainable transport:

• All amounts are exempted from social security contributions and taxes
Pillar 3: Cash amount:

• Free of taxes
• 38.07% social contributions due by the employee
PERIODICAL INSPECTION OF VEHICLES

COST OF THE PERIODICAL INSPECTION
The cost of inspection is as follows (inclusive of 21% VAT):
Private vehicles €30.60 + €11.70 (environment control)

Buses €54.60
Other vehicles under 3,500kg €34.50 + €13.90 (environment control)
Other vehicles over 3,500kg €54.60
(Semi-)trailer under 3,500kg €30.50
(Semi-)trailer over 3,500kg €45.10
Source: https://www.autocontrole.be/sites/default/files/Tarif%20CT%20FR%202020.pdf

42
BELGIUM
FREQUENCY OF VEHICLE INSPECTION

The table below shows the periodicity of inspections for different types of vehicles:
Vehicle type First visit Periodicity Exceptions

Passenger cars (cars, The day they reach the age of 4 Every year Every 2 years if the vehicle is
multipurpose cars, minibuses, years calculated from their first less than 6 years old, has
hearses) registration travelled less than
100,000km, is presented
before the usual deadline
and has its last certificate
valid
Passenger cars for paying Before the first entry into service in Every 6 months
transport of persons, vehicles Belgium or before the date of re-
for driving-instruction purposes, entry into service in Belgium
hired vehicles with chauffeurs,
and ambulances
Passenger cars with a towing Before the first entry into service in Every year
hook for trailers with an MPW Belgium or before the date of re-
of more than 750kg entry into service in Belgium
Passenger cars that are Before the entry into service in Every year after Every 2 years if the vehicle is
equipped with a towing hook Belgium of the vehicle as soon as which the less than 6 years old, has
for trailers with an MPW of no it has been equipped with the vehicle is 4 travelled less than
more than 750kg or that use a towing hook years old 100,000km, is presented
towing hook for the transport of before the usual deadline
bicycles or motorcycles and has a valid certificate
from its last inspection
Vehicles for the transport of Before the first entry into service in Every 6 months Every year if, at the last
goods with an MPW of more Belgium or before the date of re- inspection, the certificate
than 3,500 kg entry into service in Belgium was found to be valid
Vehicles for the transport of Before the first entry into service in Every 3 months Every 6 months if, at the last
goods with an MPW of more Belgium or before the date of re- inspection, the certificate
than 3,500kg ADR, buses and entry into service in Belgium was found to be valid
coaches
Tow vehicles, camping Before the first entry into service in Every 2 years
vehicles, vehicles for Belgium or before the date of re-
transporting boats or gliders entry into service in Belgium
Vehicles for the transport of Before the first entry into service in Every year
goods with an MPW of no more Belgium or before the date of re-
than 3,500kg and all other entry into service in Belgium
vehicles, except slow vehicles
Note: ADR, Dangerous Goods Vehicles

43
04
ACEA TAX GUIDE 2021
Bulgaria
Chapter prepared by
Yassen Spassov
[email protected]
ACM
Association of Car Manufacturers and
their Authorised Representatives for Bulgaria
Veliko Tarnovo Street 37
BG — 1504 Sofia
T. +359 2 946 12 50
www.aap.bg
BULGARI A
1.1 VAT
The purchase of motor vehicles is subject to VAT at the rate of 20%.
1.2 REGISTRATION DUTY

Registration duties are as follows:
Road traffic administration tax
Ecological tax BGN 160.00
Vehicle license BGN 25.00
Technical examination fee (on putting into circulation or on periodic examination)

Motorcycle BGN 16.00
Motor vehicle BGN 35.00
2.1 MOTOR VEHICLE TAX

The rates per vehicle type are as follows:
Vehicle Type Engine Capacity (cc) Tax (BGN)
Scooters ─ 10.00
Motorcycles ≤ 125 36.00
126–250 75.00
251–350 105.00
351–490 150.00
491–750 225.00
> 750 300.00
For tricycles, the tax is determined in accordance with the vehicle’s weight:
Weight (kg) Tax (BGN)
≤ 400 12.00
> 400 18.00
Passenger cars
The taxes for automobiles are determined in accordance with the engine output plus two coefficients:
one corresponding to the year of production and one determined by the ecological class of the vehicle
(European emission standards). See tables below.
The taxes for automobiles are determined in accordance with the engine output plus a coefficient
corresponding to the year of production, as follows:
Engine power (kW) Tax (BGN)

≤ 55 1.20/kW
56–74 1.62/kW
75–110 3.30/kW
111–150 3.69/kW
151–245 4.80/kW
> 245 6.30/kW

45
BULGARI A
Depending on the year of production, the tax is multiplied by the following coefficient:
Number of years after the production, including the production year Coefficient
> 20 years 1.1
15–20 years 1.0
10–15 years 1.3
5–10 years 1.5
< 5 years 2.3
Depending on the European emission standards, the tax is multiplied by the following coefficient:
European emission standards Coefficient

Euro 6 and EEV 0.6
Euro 5 0.8
Euro 4 1.0
Euro 3 1.1
Up to Euro 2 included 1.4
Commercial vehicles
For automobile trailers, the tax is as follows:
• Load trailer – BGN 15
• Camping trailer – BGN 30
For buses, the tax is determined in accordance with the number of seats:
• < 22 seats including the driver’s seat – BGN 150
• ≥ 22 seats including the driver’s seat – BGN 300
For commercial vehicles with a maximum permissible weight up to 12t, an additional BGN 10 is due for
each tonne in excess.
For tractors, the tax depends on the maximum permissible weight of the vehicle composition, the
number of axles and the suspension type of the tractor according to the registration form of the tractor:
Maximum permissible weight Tax (BGN)
for the vehicle composition (t)
Number of
Equal to or over Under Driving axle/axles with pneumatic Suspension systems
axles
suspension or pneumatic other than driving
suspension equivalent axle/axles
2 ─ 18 24.00 84.00
18 20 84.00 192.00
20 22 192.00 441.00
22 25 570.00 1,026.00
25 26 1,026.00 1,800.00
26 28 1,026.00 1,800.00
28 29 993.00 1,197.00
29 31 1,197.00 1,965.00
31 33 1,965.00 2,727.00
33 38 2,727.00 4,143.00
38 ─ 3,021.00 4,107.00
≥3 36 38 1,920.00 2,664.00
38 40 2,664.00 3,684.00
40 ─ 3,684.00 5,451.00

46
BULGARI A
For special construction vehicles (concrete mixers, concrete pumps and others), cranes, special trailers
for the transportation of heavy loads or loads that exceed the vehicle dimensions, as well as other
special vehicles, without trolleys, the tax is BGN 150.
For automobile cranes with a load-lifting capacity of more than 40t the tax is BGN 300.
For tractors, the tax is as follows:

• ≥ 11kW and < 18kW – BGN 15
• ≥ 18kW and < 37kW – BGN 21
• ≥ 37kW – BGN 30
For other self-propelling vehicles, the tax is BGN 75. For snowmobiles, the tax is BGN 150.
For commercial vehicles with a gross vehicle weight over 12t, the tax is determined in accordance with
the maximum permissible weight, the number of axles and the suspension type of the vehicle.
Maximum permissible weight Tax (BGN)

Number Equal to or over Under Driving axle/axles with pneumatic Suspension systems
of axles suspension or pneumatic other than driving
suspension equivalent axle/axles
2 12 13 90.00 183.00
13 14 183.00 504.00
14 15 504.00 711.00
15 ─ 711.00 1,608.00
3 15 17 183.00 318.00
17 19 318.00 651.00
19 21 651.00 846.00
21 23 846.00 1,302.00
23 ─ 1,302.00 2,025.00
4 23 25 846.00 858.00
25 27 585.00 1,338.00
27 29 1,338.00 2,124.00
29 ─ 2,124.00 3,150.00
Preferential reduction
Motorcycles < Euro 4 engine 20%

Motorcycles with Euro 5 and Euro 6 engine 60%
Bus or coach, truck, road tractor or semi-trailer with Euro 4 engine 20%
Bus or coach, truck, road tractor or semi-trailer with Euro 5, Euro 6 engine, EEV 50%
Electric vehicles and electric motorcycles 100%
3 TAXES ON MOTORING
3.1 FUEL TAXES

Unleaded petrol BGN 1.88/l
Diesel BGN 1.91/l

47
05
ACEA TAX GUIDE 2021
Croatia
Chapter prepared by
Hrvoje Paver
[email protected]
CACID
Croatian Association
of Car Importers and Distributors
Croatian Chamber of Economy
Roosevelt trg 2
HR — 10000 Zagreb
T. +385 1 456 16 11
F. +385 1 482 63 48
www.hgr.hr
C R O AT I A
1.1 VAT
1.2 SPECIAL TAX ON MOTOR VEHICLES

The first registration of a motor vehicle is subject to the payment of a special tax. This tax is based on
the vehicle sale price (Table 1), its CO2 emissions and the type of fuel used (Tables 2 and 3). To obtain
the amount of tax due for a given vehicle, the relevant rates from Table 1 and Table 2 or 3 should be
added up and applied to the sale price of the vehicle.
Formula for calculation:
PP = (VN + PC) + (ON + EN)
Variables:
PP = Special tax
VN = Value fee (fixed amount)
PC = amount determined by the sale price of the vehicle minus the lowest price for the group to which
the vehicle belongs (Table 1), and the result is multiplied by the percentage established for the group to
which the vehicle belongs (Table 1)
ON = Basic charge (amount in HRK for 1g/km CO2)
EN = amount determined by deducting the lowest amount for the group to which the vehicle belongs
(Table 2 or Table 3) from the vehicle's CO2 emissions, and this amount then must be multiplied by the
corresponding amount in HRK for 1g/km CO2 (Table 2 or Table 3)
Example:
Car price HRK 155,000 (including 25% of VAT)
CO2 emissions = 110g
Type of fuel: Diesel
PP = (VN + PC) + (ON + EN)
The car is in group 3, based on vehicle’s price (Table 1)
VN = HRK 2,000
PC = (155,000.00 - 150,000.01) × 3% = HRK 149.99
The car is in group 2, based on CO2 emissions (Table 2)
EN = (110 - 85) × 175 = HRK 4,375
PP = (2,000 + 149.99) + (1,010 + 4,375) = HRK 7,534.99

49
C R O AT I A
NEDC
Table 1: Sales price
Vehicle price (HRK) VN in (HRK) %
Group 1 0.00 100,000.00 0 0
Group 2 100,000.01 150,000.00 0 0
Group 3 150,000.01 200,000.00 2,000.00 3
Group 4 200,000.01 250,000.00 3,500.00 5
Group 5 250,000.01 300,000.00 6,000.00 7
Group 6 300,000.01 350,000.00 9,500.00 9
Group 7 350,000.01 400,000.00 14,000.00 11
Group 8 400,000.01 450,000.00 19,500.00 13
Group 9 450,000.01 500,000.00 26,000.00 14
Group 10 500,000.01 550,000.00 33,000.00 15
Group 11 550,000.01 600,000.00 40,500.00 16
Group 12 600,000.01 48,500.00 17
Table 2: Diesel fuel

CO2 emissions (g/km) Basic charge (ON) (HRK) Amount for 1g/km CO2 (HRK)
Group 1 70–85 185.00 55.00
Group 2 85–120 1,010.00 175.00
Group 3 120–140 7,135.00 1,150.00
Group 4 140–170 30,135.00 1,250.00
Group 5 170–200 67,635.00 1,350.00
Group 6 > 200 108,135.00 1,450.00
Table 3: Petrol, liquefied petroleum gas and natural gas and other fuels (any other than diesel)
75–90 95.00 35.00
90–120 620.00 135.00
120–140 4,670.00 450.00
140–170 13,670.00 700.00
170–200 34,670.00 1,200.00
> 200 70,670.00 1,300.00

50
C R O AT I A
For vehicles first registered from 1 January 2021, according to the Worldwide Harmonised Light Vehicle
Test Procedure (WLTP), the following tables apply:
WLTP
Table 1: Sales price
Vehicle price (HRK) VN in (HRK) %
Group 1 0.00 100,000.00 0 0
Group 2 100,000.01 150,000.00 0 0
Group 3 150,000.01 200,000.00 0 0
Group 4 200,000.01 250,000.00 3,000 3
Group 5 250,000.01 300,000.00 4,500 5
Group 6 300,000.01 350,000.00 7,000 7
Group 7 350,000.01 400,000.00 10,500 9
Group 8 400,000.01 450,000.00 15,000 11
Group 9 450,000.01 500,000.00 20,500 13
Group 10 500,000.01 550,000.00 27,000 15
Group 11 550,000.01 600,000.00 34,500 16
Group 12 > 600,000.00 42,500 17
Table 2: Diesel fuel

Group 1 95–125 85.00 105.00
Group 2 125–155 3,235.00 185.00
Group 3 155–190 8,785.00 1,100.00
Group 4 190–215 47,285.00 1,250.00
Group 5 215–255 78,535.00 1,350.00
Group 6 > 255 132,535.00 1,550.00
Table 3: Petrol, liquefied petroleum gas and natural gas and other fuels (any other than diesel)
95–125 25.00 45.00
125–155 1,375.00 140.00
155–175 5,575.00 555.00
175–200 16,675.00 725.00
200–240 34,800.00 975.00
> 240 73,800.00 1,650.00
This tax is due annually and based on the power of the engine expressed in kW, and the age of the
vehicle. The rates are as follows:
Engine power (kW) HRK
≤ 2 years 2–5 years 5–10 years
0–55 300.00 250.00 200.00
56–70 400.00 350.00 250.00
71–100 600.00 500.00 400.00
101–130 900.00 700.00 600.00
> 130 1,500.00 1,200.00 1,000.00

51
06
ACEA TAX GUIDE 2021
Cyprus
Chapter prepared by
Kyriacos Angelides
[email protected]
OEB
Employers and Industrialists Federation
Grivas Dhigenis Avenue 30
CY — 21657 Nicosia
T. +357 22 66 51 02
F. +357 22 66 94 59
www.en.oeb.org.cy/en/
CYPRUS
1.1 VAT
1.2 REGISTRATION TAX

A tax is imposed upon the registration of new vehicles. The rates are as follows:
Passenger cars
CO2 emissions (g/km) Tax rate (€)
≤ 120 0.00
121–150 €25/g CO2/km emitted > 120
151–180 €750 + €50/g CO2/km emitted > 150
> 180 €2,250 + €400/g CO2/km emitted > 180
Vans
The rate is €0.26/cc of engine capacity.
1.3 REGISTRATION FEE

An administrative fee is due upon registration of a vehicle. The rates are as follows:
Engine capacity (cc) Registration fee (€)

≤ 1,450 0.17
1,451–1,650 0.26
1,651–2,050 0.43
2,051–2,250 0.51
2,251–2,650 1.03
> 2,650 1.03
CO2 emissions adjustment: rates are reduced by 15% for vehicles that emit less than 150g CO2/km.
From 22 March 2019 there are no import taxes for vehicles in the Republic of Cyprus.
2.1 ROAD TAX

The annual road tax rates are as follows:
CO2 emissions (g/km) Tax rate (€/g CO2/km)

≤ 120 0.50
121–180 3.00
> 180 8.00

53
07
ACEA TAX GUIDE 2021
Czech Republic
Chapter prepared by
Tomáš Jungwirth
[email protected]
ACAI (AutoSAP)
Association of Czech Automotive Industry
Budejovicka 1550/15a
CZ — 140 00 Praha 4
T. +420 233 324 006
www.autosap.cz
CZECH REPUBLIC
1.1 VAT
There are three rates of VAT as set by Act No 235/2004 Coll., ‘Act on value added tax’:
• 21% — basic — for most supplies of goods and services
• 15% — reduced — for limited range of goods and services
• 10% — reduced — for limited range of goods
Automotive products typically fall into the ‘basic’ category, with a few exceptions (see indicative table
below):
Almost all vehicles (both new and used), parts, accessories 21%
Electric vehicles (Code Group TARIC 8703 90 10) 21%
Hand steering and controls for disabled persons (Code Group TARIC 8708) 15%
Car child seats (Code Group TARIC 9401 20) 15%
Sales mediation of motor vehicles, parts, accessories 21%
Fuels and lubricants 21%
1.2 ALLOWABLE DEDUCTIONS

1.2.1 VAT exemptions
A person registered for VAT can deduct the VAT on the purchase of vehicles for professional use.
Based on the principle of proportionality, diplomatic missions/staff are entitled to VAT-free purchase
of vehicles.
1.2.2 Corporate tax, exemptions, depreciation and capital allowances
The principal legislation concerning income tax (including also corporate income tax) is Act
No 586/1992 Coll., ‘Act on income taxes and some other acts’.
The Act classifies fixed assets into depreciation categories, which define the period over which the
asset can be written off. The standard depreciation period for vehicles (M1, N1, M2, M3, N2, N3) is five
years. As an anti-crisis measure (related to COVID-19) a faster tax depreciation can be applied to some
tangible goods, including vehicles (all new vehicles, also with internal combustion engines) during the
period from 1 January 2020 until 31 December 2021. The new depreciation in the specified time period
is 24 months and it is possible to depreciate 60% for the first 12 months. The 2021 tax package also
introduced extraordinary changes in financial leasing for the period until 31 December 2021, when a
leasing contract for one or two years can be concluded.
Special categories of owners (ie road transport businesses, taxi operators, driving schools, etc) are
entitled to claim 10% of the total price of asset when registering a new vehicle.
1.2.3 Lump sum deductions
A person registered for VAT can choose to reclaim VAT on costs related to the operation of the vehicle
not to their actual extent, but rather as a monthly lump sum of CZK 5,000. This rule applies to up to
three vehicles per owner on the condition that the vehicles in question are used solely for business
purposes.

1.3.1 Registration fee
Act No 56/2001 Coll. was amended in 2019, §7b specifically contains a provision on special registration
plate starting with letters "EL" since 1 April 2019. This special registration plate will be dedicated to full
battery electric vehicles (BEV), fuel cell electric vehicles (FCEV) and vehicles with alternative
powertrains (electric or hydrogen) with CO2 emissions up to 50g/km. The "EL" registration plate is not
attributed to the vehicle during the registration process automatically, nor is it compulsory; it is

55
CZECH REPUBLIC
attributed following a specific request by the person registering the vehicle. At the same time, when
requesting the "EL" plate, the registration process will be free of any charges. For more details, see the
amended Act No 634/2004 Coll. on administrative fees (annex, part II, item 26).
The fee for the administrative act of registration (ie for inclusion on the Vehicle Register) is:
CZK 800.00 For cars and commercial vehicles including buses
CZK 300.00 For motorcycles < 50cc
CZK 500.00 For motorcycles > 50cc
CZK 500.00 For trailers < 750kg carrying weight
CZK 700.00 For trailers > 750kg carrying weight
1.3.2 Special registration (‘environmental’) surcharge

On 1 January 2009, surcharges were introduced for the registration of M1 and N1 vehicles not
complying with at least Euro 3. These surcharges are not officially described as a ‘tax’, but they can be
considered as taxes on acquisition and they are, in effect, a kind of environmental tax, contributing to
the cost of vehicle park renewal. These surcharges were introduced by Act No 383/2008 Coll. of
23 September 2008, ‘Act amending Act No 185/2001 Coll. on waste and amendment of some other
acts’. As set by the Act, the level of the surcharges varies according to the emission limits the vehicle
complies as follow:
• No surcharge – Euro 3 and higher fulfilled
• CZK 3,000 – Euro 2 fulfilled
• CZK 5,000 – Euro 1 fulfilled
• CZK 10,000 – neither Euro 2 nor Euro 1 fulfilled
The surcharges are transferred to the State Environmental Fund of the Czech Republic.
There are no typical ownership taxes in the Czech Republic.
2.1 ROAD TAX

The principal legislation concerning road tax is Act No 16/1993 Coll., ‘Act on road tax’.
2.1.1 Generality
Road tax is payable on vehicles registered in the Czech Republic that are used for business purposes
(but not on vehicles owned by private persons and exclusively for personal use).
Since 2009, road tax has also been payable on all vehicles with a gross vehicle weight (GVW) of over
3.5t used to transport goods.
Road tax is calculated according to:
• engine size for passenger cars;
• weight and axle size for commercial vehicles, including coupled.
The tax period is the calendar year.
2.1.2 Allowable deductions and incentives
Exempt vehicles:
• Vehicles with fewer than four wheels (L category)
• Diplomatic vehicles
• Public passenger transport vehicles, provided 80% of their mileage during the tax period is for
the purpose of public passenger transport
• Special vehicles (army, police, fire brigade, rescue, etc)
• Vehicles for road maintenance

56
CZECH REPUBLIC
• Vehicles powered by electricity, compressed natural gas (CNG), liquefied petroleum gas (LPG),
E85 (flexi-fuel), or hybrid vehicles, for the transport of persons, and vehicles for transport of
goods with a maximum gross vehicle weight of 12t (from fiscal year 2009, with the exception of
electric vehicles, for which exemption from tax was implemented as of fiscal year 2008)
• Commercial vehicles (trucks, road tractors, trailers) with a GVW of 3.5-12t not used for business,
eg vehicles owned by private persons exclusively for personal use, training vehicles, etc (from
fiscal year 2009)
Other tax incentives are based on vehicle age, eg tax rates are reduced by 48% for a period of
36 months following the first registration date and then again by 40% for the next period of 36 months
and then again by 25% for the next period of 36 months (as of fiscal year 2008).
Tax rates are also decreased by 48% for commercial vehicles (trucks, road tractors, trailers) with a GVW
of over 12t not used for business, eg vehicles of private persons used exclusively for personal use,
training vehicles, etc (as of fiscal year 2009).
The owners of commercial vehicles used in agricultural production may apply for a 25% reduction in
road tax.
The owners of vehicles used for more than one mode of transport (railways, water) may apply for a
reduction in road tax of 25-100% depending on the number of different modes of transport for which
the vehicle was used during the tax period.
The road taxpayer should prove to the tax administrator his or her entitlement to the annual tax rebate
by keeping a record in the vehicle registration book (technicky prukaz) or by providing a separate
document issued by the responsible registration authority abroad.
2.1.3 Rates
Tax rates are assessed as annual fixed rates and range:
• from CZK 1,200 for vehicles with engines up to 800cc;
• to CZK 50,400 for heavy-duty vehicles over 36t with three axles.
Tax rates increase by 25% for vehicles that were first registered (either in the Czech Republic or abroad)
before 31 December 1989.
3 TAXES ON MOTORING
3.1 FUEL TAXES

The principal legislation concerning excise duties is Act No 353/2003 Coll., ‘Act on excise duties’.
The issue of biofuels is one of the reasons why the Act has been subject to frequent amendments. The
aim was to prevent potential tax evasion resulting from the fact that bioethanol may also be used for
fuel blending (in which case excise duty is not applicable) or to manufacture alcoholic drinks (attracting
excise duty of up to CZK 285/l). With fuel taxes, there are 100% tax incentives for pure fatty acid methyl
esters (FAMEs) (eg MERO = RME = rapeseed methyl ester; SOME = soybean ethyl ester), pure
bioethanol, E95, pure seed oil and biogas. Other incentives apply to some other fuels.
On 1 January 2012, the tax incentive (100%) for CNG was abolished.
‘Green Diesel’ programme for diesel consumption in agricultural production is still applied. From 1 July
2017 to 31 December 2018, the refund of excise duty is graded according to the stocking density of the
main livestock species. The more animals the farmers breed, the greater the refund of excise duty they
get. From 1 January 2019, the refund of excise duties should be combined for all activities in
agricultural primary production at CZK 4.38 per one litre of purchased mineral oil.
The issue of applying the refund of mineral oil tax used for agricultural primary production is governed
by Section 57 of Act No. 353/2003 Coll., on Excise Duties. The requirements for keeping records on the
purchase and consumption of mineral oils are regulated by the Decree No 38/2017 Coll.
On 1 January 2015, the excise duty for CNG (road transport) was increased.

57
CZECH REPUBLIC
Fuel taxes (January 2020)

Code Fuel type Excise duty (CZK)
2710 Petrol (lead content below 0.013g/l) 12,840/l
Petrol (lead content above 0.013g/l) 13,710/l
Medium oils and heavy gas oils (2710 19 11 to 2710 19 49) 10,950/l
Heavy heating oils (2710 19 51 to 2710 19 69) 472/t
Waste oils (2710 91 to 2710 99) 660/l
2711 Liquefied petroleum gases and biogas for road transport 3,933/t
(2711 12 11 to 2711 19)
Liquefied petroleum gases and biogas for stationary 1,290/t
engines and use outside regulated road transport
Cascade Natural Gas 3,972/t
3.2 INSURANCE
3.2.1 Insurance generally
The principal legislation concerning motor third-party liability (MTPL) insurance is Act No 168/1999
Coll., ‘Act on liability insurance for damage caused by operation of vehicle as amended later’.
Subscription to a third-party insurance (motor liability insurance) policy is compulsory for all vehicles.
3.2.2 Rates
Rates are calculated by insurance companies and vary from company to company. Insurance premiums
vary according to the owner of the car and the type of the car in question. Factors that influence the
final insurance rate include the number of traffic accidents (bonus/malus around 50%) caused by the
owner of the car, the owner’s age and place of residence, the size of the car’s engine, the purpose for
which the vehicle is to be used, etc.
To give an indication of the price of MTPL insurance, the rates charged by Ceska pojistovna for a
standard package for year 2020 (pricing before bonuses) are shown in the table below:

58
CZECH REPUBLIC
Tariff class CZK/year

Two-wheelers, three-wheelers, ≤ 50cc 355.00
four-wheelers 50–350cc 853.00
350–500cc 2,166.00
> 500cc 2,663.00
Passenger cars, trucks (≤ 3,500kg GVW) ≤ 1,000cc 3,452.00
1,000–1,350cc 4,328.00
1,350–1,850cc 6,376.00
1,850–2,500cc 10,236.00
> 2,500cc 14,097.00
Motorhomes 7,098.00
Ambulances 7,745.00
Road tractors (articulated vehicles) ≤ 3,500kg GVW 72,619.00
3,500–12,000kg GVW 75,644.00
> 12,000kg GVW 77,460.00
Trucks 3,500–12,000kg GVW 19,155.00
> 12,000kg GVW 27,260.00
Special trucks ≤ 3,500kg GVW 14,367.00
3,500–12,000kg GVW 19,155.00
> 12,000kg GVW 27,260.00
Tractors 1,563.00
Hand-controlled tractors 540.00
Buses for public city transport 12,372.00
Trolleybuses 9,324.00
Other buses ≤ 5,000kg GVW 16,895.00
> 5,000kg GVW 30,578.00
Trailers ≤ 750kg GVW 271.00
> 750kg GVW 710.00
Semi-trailers for trucks ≤ 750kg GVW 11,114.00
> 750kg GVW 12,801.00
Source: Ceska pojistovna
3.3 VIGNETTES AND TOLL

3.3.1 Vignettes
The use of motorways, dual carriageways and some first-class roads by motor vehicles with at least
four wheels or vehicles with trailers is subject to a fee.
The body responsible for road toll is the State Fund for Transport Infrastructure (SFDI).
From 1 January 2021, the Czech Republic adopted a system of electronic motorway vignettes which
replaced the existing physical coupons placed on the windshield of the vehicle. The prices and
conditions remain unchanged.
The vignettes are available for purchase in the e-shop www.edalnice.cz, accessible from computers
and smart mobile devices, or in person at a sales point – Česká pošta (Czech Post), EuroOil gas stations
or at the self-service kiosks which are located near the borders before entering toll roads and they only
accept cashless payments. The list of self-service kiosks is available for preview at
https://edalnice.cz/wp-content/uploads/2021/01/list_kiosks_ENG.pdf.
In the case of all three mentioned options of purchase it is necessary to provide a license plate number,
the country where the vehicle is registered, the type of electronic vignette and the beginning of its
validity.

59
CZECH REPUBLIC
For vehicles with gross vehicle weight (GVW) inferior or equal to 3.5t, with or without a trailer (basically
passenger vehicles), the proof of payment of the fee is a confirmation of validity after the purchase.
This can also be verified at the following link: https://edalnice.cz/index.html#/validation.
The data given in the vehicle registration document (registration book) are used for the classification
by GVW. The GVW of towed vehicles (trailers, semi-trailers) is not taken into consideration.
Battery electric vehicles (BEV), fuel cell electric vehicles (FCEV) and vehicles with alternative
powertrains such as electric or hydrogen, with CO2 emissions up to 50g/km have been exempt from
motorway tolls since 1 January 2020. Historic vehicles and vehicles carrying selected groups of people
are also exempt from the fee. Details can be found at https://edalnice.cz/en/exempt-vehicles/.
Vignettes rates in 2021

Standard price CZK 1,500.00
Annual (R) 365 days, starting any selected day of the year
Eco price CZK 750.00
Standard price CZK 440.00
30 days (M) 30 days, starting any selected day of the year
Standard price CZK 310.00
10 days (D) 10 days, starting any selected day of the year
A driver is allowed to buy all three types of electronic vignettes three months in advance.
Reduced fares (eco prices) apply in the case of ecologically-powered vehicles such as vehicles powered
by natural gas and bio methane.
For the road network where vignettes are required or any other details, see www.edalnice.cz.
3.3.2 Toll
The principal legislation concerning E-Toll system is Act No 347/2009 Coll., ‘Act amending
Act No 13/1997 Coll. on land roads and some other acts’.
Toll rates per kilometre of toll roads are set by the Regulation of the Government of the Czech Republic
No 240/2014 Coll. as amended with effect as of 1 January 2021. The toll for using a specific section is
given by a multiple of the rate and the length of a section.
Toll rates comprise a road charge, an air pollution charge, and a traffic-based noise pollution charge. A
detailed overview of toll rates can be downloaded at https://mytocz.eu/documents.
Toll rates are divided according to:
• road category (motorways; first category roads);

• vehicle category (vehicles in the electronic toll system except for M2 and M3 category
vehicles; M2 and M3 category vehicles);
• vehicle emission classes (up to EURO IV class; EURO V and EEV class; EURO VI class; CNG-
BIO EURO VI class);
• maximum permissible weight of a vehicle or a vehicle combination (over 3.5t and less than
7.5t; at least 7.5t and less than 12t; at least 12t);
• number of axles of a vehicle or a vehicle combination (2 axles; 3 axles; 4 axles; 5 or more
axles);
• period of the day (daily rate: from 05:00:00 to 21:59:59; night rate: from 22:00:00 to 04:59:59).
A fine may be imposed if a road subject to a fee is used without a toll payment.
A full overview on E-Toll rates valid from 1 January 2021 is available at the following link
https://mytocz.eu/en/etoll/toll-rates-2021.
At present, 500,000 vehicles are registered in the E-Toll system. The E-Toll system currently applies to
about 1,307km of motorways and 1,102km of first-class roads.
More information on the E-Toll system in the Czech Republic is also available at https://mytocz.eu/en.

60
CZECH REPUBLIC

The use of a company car for private motoring is treated as a benefit in kind under personal income
tax. The amount to be added to an employee’s income before taxation is 1% of the actual purchase
price of the company car for each started month of use, but not less than CZK 1,000.
5.1 GENERALITY
Compulsory periodic inspections of road vehicles include the regular technical inspections (RTIs) and
the regular emission measurements (REMs).
Motorcycle emissions are not measured if the kerb weight is below 400kg.
5.2 COSTS
Costs may vary according to the inspection station used.
RTI and REM costs (including 21% VAT) by vehicle type
Vehicle type (ECE1 categories) RTI (CZK) REM (CZK)
Passenger cars (M1, N1) 990.00 700.00 (petrol)
990.00 (diesel)
LPG, CNG 990.00 1,200.00
CVs (N2, N3, M2, M3) 1,300.00 1,200.00 (diesel)
Trailers un-/braked < 0.75t GVW (O1) 650.00 −
Trailers > 0.75t GVW (O2) 1,150.00 −
Motorcycles (L) 1,000.00 −
Source: Inspection stations
5.3 FREQUENCY
Frequency of RTIs and REMs by vehicle type (examples)
Vehicle type Interval since first Subsequent
registration (years) intervals (years)
Small motorcycles ≤ 50cc or maximum speed ≤ 50km/h 6 4
Other motorcycles 4 2
Cars, light commercial vehicles, trailers ≤ 3.5t GVW 4 2
Cars, light commercial vehicles ≤ 3.5t GVW with priority rights, 1 1
driving school vehicles, taxis, rental vehicles
Commercial vehicles and trailers > 3.5t GVW 1 1
Commercial vehicles > 3.5t GVW with priority rights 1 1
Buses (eight or more passengers) 1 1
Driving school vehicles > 3.5t GVW 1 1
Unbraked trailers ≤ 0.75t GVW 6 4
Source: Inspection stations
1 ECE: United Nations Economic Commission for Europe

61
08
ACEA TAX GUIDE 2021
Denmark
Chapter prepared by
Ole Kirkelund
[email protected]
DBI
Danish Car Importers’ Association
Radhuspladsen 16
DK — 1550 Kobenhavn V
T. +45 23 23 25 20
www.bilimp.dk
DENMARK
1.1 VAT
All vehicles are subject to VAT at the rate of 25%, based on the dutiable (taxable) value at the time of
their acquisition in new condition. Registration tax is calculated after VAT has been added to the price.

The Danish car registration tax is governed by Act No 228 of 11 March 2020 (the registration tax law)
with later amendments. The registration tax law has been amended by the so-called L 129 (bill on new
car taxes) adopted by the Danish Parliament on the 9 February 2021. The new car taxes, however, have
come into effect as of 18 December 2020 with certain transitional provisions applying to cars sold until
17 December 2020, but registered after that date. The following description will apply to the new tax
regime only.
The registration tax is based on the value (price) of the car and constitutes the main element of car
taxation in Denmark. The taxable value of a car is defined as the dealer’s sales price1 before calculating
the registration tax, but including a profit margin of at least 9% (minimum for dealer and importer
combined profit) and VAT.
The registration tax applies to all cars up to a maximum of total weight of four tonnes. The main
categories of cars, which are liable to registration tax are:
• Passenger cars with a maximum of nine seats (eight passengers in addition to the driver’s seat)
• Light commercial vehicles, vans and lorries for transportation of goods
• Cars or buses comprising more than eight seats in addition to the driver's seat
Cars for certain specific purposes (eg ambulances, taxis, buses for public transportation and personnel
carriers) and or ownerships (eg the Royal family and diplomats) are exempted from registration tax.
The following subsections describe the main elements of the registration tax for each of the main
categories.
1.2.1 New passenger cars
The taxable value is used as the basis for calculating the registration tax. The following tax rates apply
to private passenger cars (maximum nine seats):
Taxable value (DKK) Registration tax rate 2021

0–65,000 25% of the vehicle’s taxable value
65,000–202,200 85% of the vehicle’s taxable value
> 202,200 150% of the vehicle’s taxable value
Taxable value deduction for chargeable vehicles (battery capacity)
Battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) with CO2 emissions under
50g/km are granted a taxable value deduction based on the capacity of their traction battery measured
in kWh up to a capacity of 45kWh. The capacity is calculated from the (WLTP) range and energy
consumption (wh/km) according to the Certificate of Conformity (CoC), not the nominal capacity. This
tax deduction is, however, gradually phased out and will be eliminated by 2025 according to the
following scheme:
1
Certain delivery costs including charges for license plate can be omitted when calculating the taxable value / price of the car.
Total maximum of these costs is DKK 4,180 in 2021.

63
DENMARK
Year Deduction in taxable value (DKK/kWh)

2021 1,700
2022 1,300
2023 900
2024 500
Additional surcharge based on CO2 emissions

An extra registration tax based on the CO2 emissions of the car is added to the value-based registration
tax. This CO2 surcharge has a 3-step progressive and cumulative scale.
CO2 emissions (WLTP) g/km Registration tax surcharge 2021 (DKK/gram)

0–125 (first 125 g/km) 250
126–160 (next 35 g/km) 500
> 160 950
Note: Tax rates are adjusted annually (indexed).
Gradual phase-in of taxes on zero- and low-emission passenger cars
For zero-emission and low-emission cars (CO2 emissions under 50g/km), the registration tax as
calculated according to the above will be phased-in gradually over the period of 2021–2035. Fuel cell
electric vehicles (FCEV) will, however, also be exempted from registration tax in 2021.
Zero-emission cars: Phase-in of registration tax (including CO2 surcharge)
Year Zero-emission cars (%)

2021–2025 40
2026 48
2027 56
2028 64
2029 72
2030 80
2031 84
2032 88
2033 92
2034 96
2035 or later 100
Low-emission cars: Phase-in of registration tax (including CO2 surcharge)

Year Low-emission cars (%)
2021 45
2022 50
2023 55
2024 60
2025 65
2026 68
2027 71
2028 74
2029 77
2030 80
2031 84
2032 88
2033 92
2034 96
2035 or later 100

64
DENMARK
Basic registration tax deduction (all passenger cars)
All passenger cars are granted a deduction in the registration tax as calculated above. The deduction
amounts to DKK 21,700 in 2021. This basic deduction is subject to annual (indexed) adjustments.
Further registration tax deduction for zero- and low-emission passenger cars
Zero-emission and low-emission passenger cars are granted a further deduction (added to the basic
deduction above). This is gradually reduced until it reaches a final level in 2030 according to the scheme
below. The deduction may reduce the total registration tax to zero for a given car, but it cannot be
negative.
Year Further deduction (DKK) Further deduction (DKK)

Zero-emission passenger cars Low-emission passenger cars
2021 170,000 50,000
2022 167,500 48,750
2023 165,000 47,500
2024 162,500 46,250
2025 160,000 45,000
2026 155,400 43,000
2027 150,800 41,000
2028 146,200 39,000
2029 141,600 37,000
2030 or later 137,000 35,000
Special provisions
Hydrogen-powered and fuel cell electric vehicles (FCEV) are exempt from registration tax until the end
of 2021. After 2021, they are treated as other zero-emission cars, like typical BEVs, except for the tax
deduction based on battery capacity, which does not apply to FCEVs.
Non-chargeable hybrid vehicles (HEV) are not subject to any specific reductions in the taxable value or
the registration tax. Instead, the same rules as for conventional combustion engine vehicles apply. The
same applies to gas-powered vehicles (no distinction is made between CNG and LPG).
The technical parameters that are applied in the calculation of the registration tax are generally based
on official CoC data including WLTP data. Where these data are not available, special provisions apply
(not covered here).
1.2.2 New light commercial vehicles (LCV), vans and pickup trucks (max 4,000kg total weight)
Cars constructed for transportation of goods and with a maximum total weight of 4,000kg (LCVs) are
liable to registration tax. The registration tax amounts to DKK 0 of the taxable value up to DKK 75,000
(2021) and 50% of the value above that.
Taxable value deduction for chargeable vehicles (battery capacity)
The same deduction in the taxable value (based on battery capacity) as for passenger cars applies to
chargeable zero- and low-emission LCVs. (See above under section 1.2.1).
Additional surcharge based on CO2 emissions
There is an additional (flat rate) surcharge based on the CO2 emissions of the car, which amounts to
DKK 250 CO2 g/km in 2021.
Gradual phase-in of taxes on zero- and low-emission LCVs

Zero- and low-emission LCVs use the same gradual phase-in of the registration tax as passenger cars.
(See above under section 1.2.1).

65
DENMARK
Basic registration tax deduction (all LCVs)
All LCVs are granted a deduction in the registration tax as calculated above. The deduction amounts to
DKK 30,000 in 2021. This basic deduction is subject to annual (indexed) adjustments.
Further registration tax deduction for zero- and low-emission LCVs

Zero-emission and low-emission LCVs are granted a further deduction, which is gradually reduced until
it reaches a final level in 2030 according to the scheme below. The deduction may bring the total
registration tax to zero for a given car, but it cannot be negative.
Year Further deduction (DKK) Further deduction (DKK)
Zero-emission LCVs Low-emission LCVs
2021 80,000 50,000
2022 78,750 48,750
2023 77,500 47,500
2024 76,250 46,250
2025 75,000 45,000
2026 73,000 43,000
2027 71,000 41,000
2028 69,000 39,000
2029 67,000 37,000
2030 or later 65,000 35,000
Maximum registration tax for certain LCVs

For LCVs with a total weight over 3,000kg, which are either open (pick-up trucks) or without
side-windows behind the driver’s seat in the left side of the car, including cut-out for side-windows
behind the driver’s seat, the registration tax including the CO2 surcharge cannot exceed DKK 47,000.
1.2.3 Lorries
No registration tax applies to vehicles that weigh more than 4,000kg.
1.2.4 New motor caravans (campers) and buses (for private use)
For buses, which are defined as cars that are designed to carry more than nine persons including the
driver, the registration tax amounts to DKK 0 of the taxable value up to DKK 12,100 and 60% of the rest.
Campers are taxed in the same way as passenger cars. For campers with a total weight of at least
2,000 kg and with sleeping accommodation for at least two persons, the value of the accommodation
parts of the car can be subtracted from the taxable value of the car including VAT and profit margin.
However, the minimum registration tax hereafter shall amount to DKK 0 of the taxable value up to
DKK 12,100 and 45% of the rest.
1.2.5 New taxis
From 1 January 2015, no registration tax applies to taxis. There are certain specific energy and
environmental demands for taxis. These demands have no connection to taxation rules.
1.2.6 Tax exemptions
Registration tax exemptions include (see also under section 1.2.1):
• hydrogen-powered and fuel cell cars (until 31 December 2021);
• vehicles owned by persons who are generally not taxable (eg members of the Danish Royal
Family, foreign diplomats, etc);
• lorries with a total weight exceeding 4t;
• vehicles approved for carrying one or more persons in wheelchairs and vehicles used by
nursing homes for the elderly or used to transport patients;
• vehicles used for rescue operations (eg fire trucks and ambulances);
• vehicles not used for regular transportation (eg caravans, trailers, tractors, work equipment
and test vehicles);

66
DENMARK
• personnel carriers (vehicles designed specifically to transport both employees and

equipment to and from the workplace); very specific regulations apply for the assessment of
a car as a personnel carrier.
1.2.7 Vehicles authorised for partial (proportional) payment of the registration tax (leasing)2
This applies to foreign company cars that are used permanently in Denmark, to cars that are registered
for temporary use in Denmark and to rental / leasing cars owned by companies (both Danish and
foreign).
For cars that are up to three months old, the tax is 2% of the calculated registration tax. For the next
33 months, the fee is 1%, and for cars older than 36 months the fee is 0.5% per started month. At the
time of payment an interest rate is added for the part of the calculated registration tax that remains
after payment. The interest rate is the latest published average lending rate by Danish banks to non-
financial companies as published by Statistics Denmark. The rate is calculated as of 1 January or July.
The registration tax for rental cars is calculated in the same way as for foreign company cars, but the
tax for the entire rental period is paid at the time of registration.
1.2.8 Acquisition (import) of a second-hand vehicle
Since the registration tax is paid ‘up front’ when the vehicle is registered for the first time (new), it is
(generally) not recalculated when the car is sold second-hand. Instead, the tax becomes part of the
market value of the vehicle and will depreciate proportionately. Imported second-hand vehicles are
taxed in the same way as new vehicles, but the registration tax is calculated based on the market value
of an equivalent car. The taxation is reduced proportionately to the value lost on the Danish market.

VAT paid on the purchase of a private car by a taxable person is not deductible.
VAT on commercial vehicles may be recovered only when these vehicles are used for the transport of
goods (commercial use).
1.3.2 Deduction of the registration tax
The registration tax is not deductible under any circumstances.

The charge for two license plates (one ‘set’) and the registration certificate amounts to DKK 1,180
(including 25% VAT).
2.1 OWNER’S (‘GREEN’) TAX, WEIGHT TAX AND EQUALISATION TAX

All taxable passenger cars (maximum nine seats including the driver’s seat) first registered after
1 July 1997 pay a semi-annual tax based on the car’s fuel consumption in accordance with the ‘Fuel
Consumption Tax Law’, Act No 1453 of 30 November 2018 (with later amendments) – the so-called
‘Owners (‘Green’) tax’ (hereinafter the ‘Green Tax’). LCVs with a total weight not exceeding 3,500kg also
pay an annual Green tax.
Until September 2018 the fuel consumption for new cars was based on the ‘New European Driving Cycle
(NEDC) as specified in Council Directive 80/1268/EEC of 16 December 1980 (on the approximation of
the laws of the Member States relating to the fuel consumption of motor vehicles) or the Regulation
2 New rules apply to leasing cars registered after 3 October 2017, which means that the taxable value of these cars must be
recalculated if / when the ownership of the cars is transferred to a third party by sale or, alternatively, four months after first
registration at the latest. If the recalculation of the taxable value shows a higher taxable value than at first registration, this will
result in additional registration tax to be paid by the first owner (typically the leasing company).

67
DENMARK
(EC) No 715/2007 of 20 June 2007. The consumption figure is recalculated into kilometres per litre
(km/l).
As of September 2018, all new cars are measured according to WLTP and the guidelines in the
regulations (EU) 1151/2017 (with later amendments). Thereby all new cars will be equipped with both
a new (more realistic) WLTP fuel consumption figure and a so-called ‘correlated’ NEDC figure3.
To neutralise the (average) tax effect of introducing WLTP, individual fuel consumption figures in km/l
are multiplied by 1.21. Correlated NEDC figures are multiplied by 1.1. Until 31 December 2020, the fuel
consumption is based on correlated NEDC, and as of 1 January 2021, only WLTP figures will apply4.
Diesel-driven cars also pay an additional so-called equalisation tax (countervailing duty), which is
indexed based on the average net price index two years before the calendar year (see tables below)5.
Because of the introduction of WLTP for taxation purposes, the ‘Green Tax’ now have different tax rates
for cars registered for the first time before and after 3 October 2017.
New CO2-tax on ownership
As a result of the so-called L 129 (bill on new car taxes) adopted by the Danish Parliament on the
9 February 2021, a new Green Tax based on CO2 emissions has been introduced and will have effect
on cars registered for the first time as of 1 July 2021. The new tax will run in parallel with the existing
Green Tax applicable to cars registered for the first time before 3 October 2017 and between this date
and 1 July 2021.
The new Green Tax will be based on CO2 emissions in g/km (WLTP) instead of fuel consumption and
since tax rates and scale etc. are new, no adjustments or corrections between NEDC and WLTP figures
are relevant for the new tax (hereinafter the ‘CO2-tax’)6.
This section will focus on the tax rates applicable to petrol- and diesel-driven passenger cars registered
for the first time after 3 October 2017 and after 1 July 2021 according to Act No 1453 of
30 November 2018 with later amendments including amendments to this Act resulting from L 129.
Cars for transportation of goods (category N) / LCVs with a total weight not exceeding 3,500kg will
continue the previous taxation scale in the transition period until 30 June 2021 (rates are also annually
adjusted).
However, the CO2-tax on ownership for LCVs applicable as of 1 July 2021 is included below. The Green
tax based on fuel consumption is not. The CO2-tax on ownership for LCVs and passenger cars is the
same hereafter.
Following L 129, the Green Tax and CO2-tax rates referred to in this section as well will be increased
annually until 2026. In this section, only the tax rates for 2021 are mentioned.
3 Correlated NEDC figures (called NEDC-2) are calculated based on WLTP using the so-called CO2MPAS calculation tool.
See: https://co2mpas.io/
4 End of series vehicles (category N) with no available WLTP data may still use NEDC after 31 December 2020, although for a
limited period.
5 The equalisation or ‘countervailing duty ‘equalises’ a difference in the taxation of petrol and diesel fuels.
6 Until 1 July 2021, special rules apply to BEVs, PHEVs, FCEVs, and gas-driven vehicles with the purpose of calculating a (theoretic)
figure of fuel consumption for these cars. After this date, the CO2 emissions of these cars will determine the annual CO2-tax on
ownership. Zero-emission cars will thus pay the lowest possible tax.

68
DENMARK
‘Green tax’ for passenger cars registered for the first time as of 3 October 2017 and until
30 June 2021
Passenger cars 2021
Km/l (Petrol) DKK Semi-annually
Minimum 50 330.00
< ≥
50 44.4 370.00
44.4 40 390.00
40 36.4 410.00
36.4 33.3 430.00
33.3 28.6 460.00
28.6 25 500.00
25 22.2 540.00
22.2 20 580.00
20 18.2 890.00
18.2 16.7 1,190.00
16.7 15.4 1,510.00
15.4 14.3 1,820.00
14.3 13.3 2,120.00
13.3 12.5 2,430.00
12.5 11.8 2,730.00
11.8 11.1 3,040.00
11.1 10.5 3,350.00
10.5 10 3,660.00
10 9.1 4,260.00
9.1 8.3 4,900.00
8.3 7.7 5,510.00
7.7 7.1 6,120.00
7.1 6.7 6,730.00
6.7 6.3 7,360.00
6.3 5.9 7,970.00
5.9 5.6 8,580.00
5.6 5.3 9,220.00
5.3 5 9,830.00
5 4.8 10,440.00
4.8 4.5 11,050.00
4.5 ─ 11,680.00

69
DENMARK
Passenger cars 20217

Total tax Thereof countervailing duty
Km/l (Diesel) DKK Semi-annually DKK Semi-annually
Minimum 56.3 490.00 160.00
< ≥
56.3 50 530.00 160.00
50 45 550.00 160.00
45 41 570.00 160.00
41 37.6 590.00 160.00
37.6 32.1 620.00 160.00
32.1 28.1 1,240.00 740.00
28.1 25 1,860.00 1,320.00
25 22.5 2,000.00 1,420.00
22.5 20.5 2,460.00 1,570.00
20.5 18.8 2,880.00 1,690.00
18.8 17.3 3,330.00 1,820.00
17.3 16.1 3,780.00 1,960.00
16.1 15 4,220.00 2,100.00
15 14.1 4,690.00 2,260.00
14.1 13.2 5,130.00 2,400.00
13.2 12.5 5,600.00 2,560.00
12.5 11.9 6,030.00 2,680.00
11.9 11.3 6,470.00 2,810.00
11.3 10.2 7,370.00 3,110.00
10.2 9.4 8,270.00 3,370.00
9.4 8.7 9,140.00 3,630.00
8.7 8.1 10,070.00 3,950.00
8.1 7.5 10,910.00 4,180.00
7.5 7 11,800.00 4,440.00
7 6.6 12,740.00 4,770.00
6.6 6.2 13,600.00 5,020.00
6.2 5.9 14,510.00 5,290.00
5.9 5.6 15,430.00 5,600.00
5.6 5.4 16,320.00 5,880.00
5.4 5.1 17,290.00 6,240.00
5.1 ─ 18,210.00 6,530.00
7 The countervailing duty has been increased as of 15 February 2021. The table shows the total tax in 2021 as of this date.

70
DENMARK
CO2-tax for passenger cars registered for the first time as of 1 July 2021 and later
All passenger cars and LCVs 20218
(independent of fuel) CO2-tax further countervailing duty (diesel only)
Gram CO2/km DKK Semi-annually DKK Semi-annually
Maximum 58 330.00 160.00
> ≤
58 65 370.00 160.00
65 73 390.00 160.00
73 80 410.00 160.00
80 87 430.00 160.00
87 102 460.00 160.00
102 116 500.00 740.00
116 131 540.00 1,320.00
131 145 580.00 1,420.00
145 160 890.00 1,570.00
160 174 1,190.00 1,690.00
174 189 1,510.00 1,820.00
189 203 1,820.00 1,960.00
203 218 2,120.00 2,100.00
218 232 2,430.00 2,260.00
232 246 2,730.00 2,400.00
246 262 3,040.00 2,560.00
262 277 3,350.00 2,680.00
277 290 3,660.00 2,810.00
290 319 4,260.00 3,110.00
319 350 4,900.00 3,370.00
350 377 5,510.00 3,630.00
377 409 6,120.00 3,950.00
409 433 6,730.00 4,180.00
433 461 7,360.00 4,400.00
461 492 7,970.00 4,770.00
492 519 8,580.00 5,020.00
519 548 9,220.00 5,290.00
548 581 9,830.00 5,600.00
581 605 10,440.00 5,880.00
605 645 11,050.00 6,240.00
645 11,680.00 6,530.00
Lack of data on fuel consumption (Green Tax)

If there is no available information on the fuel consumption of a petrol-driven car, this is calculated
(in l/100km) as the sum of a fixed element of 3l/100km and a variable element calculated as 0.5% of
the tare weight of the car in kilograms. For diesel-driven cars the resulting figure of the calculation
above is reduced by 12.5%.
For cars powered by liquefied natural gas or biogas (LNG / CNG), the annual tax is the same as for
diesel-driven cars. If the gas consumption figure is measured in m3/km, this figure is recalculated to a
consumption figure in km/l diesel. The recalculation of a gas consumption figure measured in m3/km
to a diesel “equivalent” in l/100 km is done by dividing this figure with a fixed factor of 0.00907. The
result is regarded as equivalent to the fuel consumption of a diesel-driven car. If there is no information
on fuel consumption, the tax is calculated after the same method that applies to diesel cars (see above).
8 The countervailing duty has been increased as of 15 February 2021. The table shows the total tax in 2021 as of this date.

71
DENMARK
However, as the Green tax will be replaced with the CO2-tax, this calculation will not be relevant, if
information on CO2 emissions is available.
For petrol and diesel-driven cars with a curb weight of over 2,585kg where there is no information on
fuel consumption according to EU Regulation No 715/2007/EC, the fuel consumption is set as the sum
of a fixed element and variable element, which is calculated as 0.2% of the part of the curb weight that
exceeds 2,585kg. For diesel-driven cars fulfilling the Euro 6 norm, the fixed element is 6.4l/100 km and
7.4l/100 km if fulfilling the Euro 5 norm. It is 9l/100km for diesel-driven cars which do not, as a
minimum, fulfil the Euro 5 norm. For petrol-driven cars, these figures are increased by 10%.
Tax for private use of LCVs and cars taxed by weight (Weight tax)
LCVs with a total weight of up to 3,500kg that are used for private purposes are liable for an annual
surcharge, which is added to the ‘Green tax’ or alternatively to the weight tax (see below) for vans and
lorries up to 4,000kg total weight. The surcharge is DKK 6,250 (2020) for LCVs up to 3,000kg and
DKK 18,560 for LCVs between 3,001kg and 4,000kg (2020). LCVs that are partly used for commercial
purposes pay a surcharge of half of the above.
Weight tax (excise duty)
Vehicles not covered by the ‘Green tax’ or the CO2-tax on ownership are liable for weight tax and
equalisation tax/countervailing duty as specified in Act No 1261 of 7 November 2018 (weight tax law)
with later amendments of which the latest by 2021 are the ones resulting from the so-called L 129 (bill
on new car taxes) adopted by the Danish Parliament on the 9 February 2021.
For new cars, the weight tax is only relevant for passenger cars and buses for more than nine seats
including the driver’s seat, and for vans and lorries with a total weight of more than 3,500kg and up to
12,000kg. Lorries (trucks) with a total weight over 12,000kg are liable for road use charge.
Passenger cars, including combined vans and passenger cars, are taxed on tare weight. Taxis are
exempted from weight tax. Vans and lorries are taxed on the maximum legal total weight. Diesel and
gas cars are further liable for equalisation tax.
A. Passenger vehicles except for buses and coaches, taxis, trailers, and semi-trailers for passenger
transport (2018): Not relevant for new cars / new registrations of passenger cars since 1997 and LCVs
since 2009.
B. Buses and coaches with maximum two axles (2020 and 2021)
Tare weight (kg) Weight tax (DKK Countervailing duty for diesel (DKK)9
per annum) Motor vehicle Trailer
≤ 1,300 450.00 1,130.00 –
1,301–1,500 585.00 1,160.00 –
1,501–2,000 810.00 1,230.00 –
2,001–3,000 900.00 1,230.00 –
3,001–4,000 1,440.00 1,230.00 –
4,001–5,000 1,920.00 1,230.00 –
5,001–6,000 2,400.00 1,230.00 –
6,001–7,000 3,120.00 1,230.00 –
7,001–8,000 3,640.00 1,230.00 –
8,001–9,000 4,160.00 1,230.00 –
> 9,000 (duty per 100kg) 50.00 14.00 –
C. Buses, coaches with more than two axles (2020 and 2021)
Tare weight Weight tax (DKK per annum) Motor vehicle (DKK per annum) Trailer
Duty per 100kg 36.00 10.00 –
9 Countervailing duty for buses is not indexed.

72
DENMARK
D. Cars for professional / commercial passenger transport (eg taxis and ambulances) (202110)
Taxis and vehicles dedicated to transportation of patients (kg) Countervailing duty (DKK per annum)
≤ 800 3,020.00
801–1,100 3,740.00
1,101–1,300 4,430.00
1,301–1,500 4,850.00
1,501–2,000 5,360.00
> 2,000 6,420.00
Vans and lorries that are not subject to duty in accordance with the Danish Act on a road use charge
Duty on vans and lorries (and trailers for transport of goods), which are not subject to road use charge
are taxed based on the maximum total weight.
For vans and lorries of up to 4,000kg, and which were registered for the first time after 2 June 1998, a
surcharge is paid for private and mixed private/commercial use, in addition to vehicle excise duty and
countervailing duty. The rates below apply to private use. For mixed private/commercial use, the
surcharge is half that for private use.
Motor vehicles not subject to duty in accordance with the Danish Act on a road use charge and certain
trailers
A. Motor vehicles and trailers < 4,000kg permitted total weight
Total weight (kg) Weight tax (DKK) per Countervailing duty (DKK) Surcharge for private use
annum (2021) per annum (2021) (DKK) per annum (2021)
Motor vehicle Trailer Motor vehicle Trailer Motor vehicles11
≤ 500 1,060.00 – 720.00 – 6,250.00
501–1,000 1,360.00 150.00 1,040.00 – 6,250.00
1,001–2,000 2,250.00 290.00 1,410.00 – 6,250.00
2,001–2,500 3,890.00 360.00 1,760.00 – 6,250.00
2,501–3,000 4,660.00 460.00 2,000.00 – 6,250.00
3,001–4,000 4,660.00 560.00 2,270.00 – 18,560.00
B. Motor vehicles and trailers > 4,000kg permitted total weight (2021)
a) With maximum 2 Weight tax (DKK per Countervailing duty (DKK per annum)
axles annum)
Total weight (kg) Motor vehicle Trailer Motor vehicle Trailer
4,001–5,000 2,052.00 552.00 1,150.00 200.00
5,001–6,000 2,052.00 672.00 1,150.00 250.00
6,001–7,000 2,052.00 825.00 1,150.00 300.00
7,001–8,000 2,052.00 988.00 1,150.00 400.00
8,001–9,000 2,052.00 1,161.00 1,150.00 450.00
9,001–10,000 2,052.00 1,344.00 1,150.00 550.00
10,001–11,000 2,279.00 1,537.00 1,150.00 650.00
11,001–12,000 2,610.00 1,740.00 1,150.00 750.00
12,001–13,000 3,087.00 1,953.00 1,150.00 850.00
13,001– 14,000 3,604.00 2,176.00 1,150.00 1,000.00
14,001– 15,000 4,161.00 2,628.00 1,150.00 1,100.00
> 15,000
Duty per 200kg 60.00 40.00 16.00 16.00
10
The countervailing duty is increased as of 15 February 2021. The table only show the tax rates as of this date.
11 Registered for the first time on the 25 April 2007 or later.

73
DENMARK
b) With more than 2 axles

Total weight (kg) Motor vehicle Trailer Motor vehicle Trailer
≤ 18,000
Duty per 200kg 32.00 20.00 11.00 12.00
18,001–19,000 3,069.00 1,953.00 1,150.00 1,100.00
19,001–20,000 3,332.00 2,156.00 1,150.00 1,200.00
> 20,000
Duty per 200kg 36.00 24.00 13.00 13.00
Motor vehicles subject to duty in accordance with the Danish Act on the road use charge (2021)
Total weight (kg) Pneumatic suspension (DKK per annum) With other suspension (DKK per annum)
A. Lorries
a) with 2 axles
< 13,000 0.00 226.00
13,000–13,999 226.00 627.00
14,000–14,999 627.00 882.00
≥ 15,000 882.00 2,050.00
b) with 3 axles
< 17,000 226.00 394.00
17,000–18,999 394.00 809.00
19,000–20,999 809.00 1,050.00
21,000–22,999 1,050.00 1,661.00
≥ 23,000 1,661.00 2,582.00
c) with 4 axles or more
< 25,000 1,050.00 1,065.00
25,000–25,999 1,065.00 1,706.00
26,000–28,999 1,706.00 2,709.00
≥ 29,000 2,709.00 4,019.00
B. Juggernauts and articulated semi-trailers

a) Lorries with 2 axles
1) Trailer or semi-trailer with 1 axle
< 16,000 – –
16,000–17,999 – 102.00
18,000–19,999 102.00 233.00
20,000–21,999 233.00 547.00
22,000–22,999 547.00 707.00
23,000–24,999 707.00 1,276.00
≥ 25,000 1,276.00 2,297.00
2) Trailer or semi-trailer with 2 axles
< 25,000 219.00 510.00
25,000–25,999 510.00 839.00
26,000–27,999 839.00 1,232.00
28,000–28,999 1,232.00 1,526.00
29,000–30,999 1,526.00 2,507.00
31,000–32,999 2,507.00 3,480.00
≥ 33,000 3,480.00 5,284.00
3) Trailer or semi-trailer with 3 or more axles
< 38,000 2,769.00 3,854.00
≥ 38,000 3,854.00 5,239.00
b) Lorries with 3 or more axles
1) Trailer or semi-trailer with 1 axle
< 25,000 219.00 510.00
25,000–25,999 510.00 839.00
26,000–27,999 839.00 1,232.00
28,000–28,999 1,232.00 1,526.00

74
DENMARK
29,000–30,999 1,526.00 2,507.00

31,000–32,999 2,507.00 3,480.00
≥ 33,000 3,480.00 5,284.00
2) Trailer or semi-trailers with 2 axles
< 38,000 2,447.00 3,398.00
38,000–39,999 3,398.00 4,700.00
≥ 40,000 4,700.00 6,905.00
3) Trailer or semi-trailer with 3 or more axles
< 38,000 1,356.00 1,684.00
38,000–39,999 1,684.00 2,514.00
≥ 40,000 2,514.00 4,004.00
2.2 ROAD USE CHARGE

A road use charge is collected for lorries weighing more than 12,000kg. The provisions on the road use
charge are laid down in Danish Act No 195 of 25 February 2019, with later amendments. The Road use
charge is applicable to both Danish and foreign trucks and covers road use in Denmark, Sweden, the
Netherlands, and Luxemburg, which means that charge paid in one of the countries covers use in
Denmark. Belgium has left the agreement as of 1 April 2016.
Lorries with a total weight of 12t and more (Euro VI or cleaner)12 2020
Up to 3 axles 4 axles and more
DKK per year 5,581.00 9,302.00
DKK per month 559.00 931.00
DKK per week 149.00 246.00
DKK per day 89.00 89.00
3 TAXES ON MOTORING
3.1 FUEL TAXES

Taxes on fuel for motor vehicles are regulated in the Mineral Oil Tax Law (Act No 1118 of
26 September 2014 on energy tax of mineral oil products). As of 2016 the energy taxes are indexed
according to the net price index.
TAX - 2021 (volume at day temperature) DKK
Unleaded petrol (9.8% biofuel content) 4.263/l
Light diesel (6.8% biofuel content) 2.793/l
Auto gas (LPG) 1.905/l
Other bottled gas (LPG) used in motor vehicles 3.502/kg
3.2 INSURANCE TAXES

The provisions on this are laid down in Act No 213 of 27 February 2017 with later amendments. The
duty amounts to 42.9% on the premium for the third-party liability insurance (the duty not included).
Haulage contractors’ lorries that perform licensed haulage are exempted from the duty.
Insurance policies for registered tractors, trailers and semi-trailers are covered by the duty liability.
The duty on tourist coaches amounts to 34.4% on the premium. For three-wheeled electrically-powered
mopeds and motorcycles, the duty is DKK 230 per annum. For other motor vehicles under this act, the
tax is 42.9% of the insurance premium.
12 Charges are higher for vehicles under Euro II emission class standards

75
DENMARK
4 PRIVATE USE OF A COMPANY-OWNED CAR

In Denmark, the private use of a company-owned passenger car is regarded as a benefit in kind, which
is taxable as personal income tax according to the Act No 806 of 8 August 2019 on personal income
taxation with later amendments (in Danish Ligningsloven). An employee with private access to a
company car is thus subject to an additional annual income tax based on the value (price) of the
company car. The tax rates will be gradually adjusted until 2025 with a two-step adjustment in 2021:
From 1 January to 30 June 2021:

• 25% of the value of the car up to DKK 300,000 (minimum DKK 160,000)
• 20% of the rest of the car price (no maximum)
From 1 July to 31 December 2021:
• 24.5% of the value of the car up to DKK 300,000 (minimum 160,000)
• 20.5% of the rest
In the following years, these tax rates will be adjusted according to this scheme:
• 2022: 24% and 21%
• 2023: 23.5% and 21.5%
• 2024: 23% and 22%
• 2025: 22.5% (flat rate)
An environmental surcharge based on the car’s annual tax on ownership, ie the ‘Green tax’ or CO2-tax
(excluding countervailing duty) is added to the value-based tax above. This surcharge will be gradually
adjusted annually until 2025:
• From 1 January to 30 June 2021: 150% on the annual tax on ownership
• From 1 July to 31 December 2021: 250%
• 2022: 350%
• 2023: 450%
• 2024: 600%
• 2025: 700%
The purpose of the annual adjustments is to gradually increase the environmental and
emissions-based profile of the taxation of private use of a company car.

76
09
ACEA TAX GUIDE 2021
Estonia
Chapter prepared by
Arno Sillat
[email protected]
AMTEL
Union of Estonian Car Sales
and Service Enterprises
Pärnu mnt 232/1
EE — 11625 Tallinn
T. +372 56 54 234
www.amtel.ee
ESTONIA
1.1 VAT
1.2 REGISTRATION DUTY

Registration sheet and label: €62.00.
Vehicle registration card: €130.00.
2.1 PASSENGER CARS

No ownership taxes apply.
2.2 HEAVY GOODS VEHICLES

An ownership tax is payable on heavy goods vehicles.
The rates (in euros per quarter) are as follows:
Category of heavy goods Maximum authorised Tax rate according to type of suspension of driving axle
vehicle by number of weight or gross laden (€ per quarter)
axles weight (kg) Air suspension or equivalent Other type of suspension
Lorry or truck
2 axles 12,000–12,999 0.00 7.90
13,000–13,999 7.90 21.70
14,000–14,999 21.70 30.30
≥ 15,000 30.30 68.70
3 axles 12,000–14,999 0.00 0.00
15,000–16,999 7.90 13.70
17,000–18,999 13.70 28.10
19,000–20,999 28.10 36.10
21,000–22,999 36.10 55.90
≥ 23,000 55.90 86.30
4 axles 12,000–22,999 0.00 0.00
23,000–24,999 36.10 36.70
25,000–26,999 36.70 57.00
27,000–28,999 57.00 90.50
≥ 29,000 90.50 134.30
Road train (truck + trailer)
2 + 1 axles 12,000–13,999 0.00 0.00
14,000–15,999 0.00 0.00
16,000–17,999 0.00 3.50
18,000–19,999 3.50 8.00
20,000–21,999 8.00 18.80
22,000–22,999 18.80 24.30
23,000–24,999 24.30 44.00
≥ 25,000 44.00 76.80

78
ESTONIA
2 + 2 axles 12,000–14,999 0.00 0.00

15,000–22,999 0.00 0.00
23,000–24,999 7.50 17.50
25,000–25,999 17.50 28.80
26,000–27,999 28.80 42.50
28,000–28,999 42.50 51.10
29,000–30,999 51.10 84.00
31,000–32,999 84.00 116.60
≥ 33,000 116.60 176.70
2 + 3 axles 12,000–35,999 0.00 0.00
36,000–37,999 92.60 128.80
≥ 38,000 128.80 175.10
3 + 2 axles 12,000–35,999 0.00 0.00
36,000–37,999 81.80 113.50
38,000–39,999 113.50 157.50
≥ 40,000 157.50 232.60
3 + 3 or more axles 12,000–35,999 0.00 0.00
36,000–37,999 46.50 56.30
38,000–39,999 56.30 84.00
≥ 40,000 84.00 133.80
3 TAXES ON MOTORING
3.1 FUEL TAXES

In addition to 20% VAT, the following excise duties apply:
• Diesel: €0.372/l (temporary reduction in excise duty rates from 1 May 2020 to 30 April 2022)
• Unleaded petrol: €0,563/l (from 1 January 2018)

79
10
ACEA TAX GUIDE 2021
Finland
Chapter prepared by
Hanna Kalenoja
[email protected]
AUTOTUOJAT JA – TEOLLISUUS RY
Association of Automobile Industry in Finland
Ateneuminkuja 2 C 10 krs
FI — 00100 Helsinki
T. +358 50 5344 750
www.autotuojat.fi
FINLAND
1.1 VAT
VAT is applied at the rate of 24%.

A registration tax is levied on passenger cars, delivery vans and other cars weighing less than 1,875kg
and on motorcycles. The tax is levied before the first registration or use of the vehicle in Finland.
Registration tax was reduced in four steps between 2016 and 2019 for cars with CO2 emissions of
141g/km or less. A separable tax table for WLTP type-approved cars was introduced in September
2018. WLTP tax table was later adjusted in December 2018 and January 2019 in order to ensure that
the tax levels would not increase due to the implementation of WLTP measurement.
Passenger cars
The tax is based on the common retail value and the CO2 emissions (in g/km) of the car. In practice,
registration tax is calculated on the basis of the CO2 emissions and the list prices including VAT. The
minimum tax rate in 2019 is 2.7% and the maximum rate 50% (Figure 1). The tax rate is applied to one
decimal place. The registration tax percentage is a share of total price including all taxes, also the
registration tax.
Tax is calculated by using a taxation value. The taxation value is the general retail price including VAT
based on the list price of cars minus ordinary discount. More information can be found here:
www.aut.fi/registration_tax
Figure 1: Registration tax percentage
For used cars imported to Finland, the registration tax cannot be higher than it was in accordance with
the legislation that was valid when the vehicle was originally registered for the first time.
Purchase incentives of full-electric vehicles
A purchase incentive of €2,000 for new all-electric passenger cars (M1 or M1G) was introduced in the
beginning of 2018. The incentive is available only for households and for cars, of which price is at
highest €50,000. The purchase incentive is valid until 30 November 2021.

81
FINLAND
Vans
The registration tax for vans is equal to that of passenger cars, but tax rate is reduced on the basis of
the total weight of the van if it is above 2,500kg and the bearing capacity (total mass minus kerb weight)
is 680kg or more. Additional preconditions for the reduction are that the van has only one row of seats
and that its power–total mass ratio (in kW/kg) is below a set level. This is 0.05 if the bearing capacity
is 680-999kg and 0.06 if the bearing capacity is 1,000kg or more. However, the minimum tax rate is
2.7%. The deduction (%) is presented in the following table.
Tax deduction (%)
Total weight (kg) Applied on NEDC tax table Applied on WLTP tax table
2,501–2,550 9.8 14.3
2,551–2,600 11.5 16.0
2,601–2,650 12.8 17.3
2,651–2,700 13.8 18.3
2,701–2,750 14.7 19.2
2,751–2,800 15.4 19.9
2,801–2,850 16.1 20.6
2,851–2,900 16.7 21.2
2,901–2,950 17.2 21.7
2,951–3,000 17.8 22.3
3,001–3,050 18.3 22.8
3,051–3,100 18.7 23.2
3,101–3,150 19.1 23.6
3,151–3,200 19.6 24.1
3,201–3,250 19.9 24.4
3,251–3,300 20.3 24.8
3,301–3,350 20.7 25.2
3,351–3,400 21.0 25.5
3,401–3,450 21.4 25.9
3,451–3,500 21.7 26.2
2.1 BASIC TAX

The basic tax component of the vehicle tax applicable to cars, vans and recreational vehicles is based
on the vehicle’s CO2 emissions. For vehicles lacking emissions data or that have been measured using
outdated methods, the tax rate will be based on the total mass of the vehicle. Where emissions data
are not available, total mass is considered to reflect the vehicle’s fuel consumption – and total mass
data are available on all vehicles. If the total mass of a vehicle divided by 100kg and rounded upwards
is m, the CO2 emissions value, h, used to calculate the basic tax can be calculated using the formula
h = 10 × m + 7.
CO2 emissions data will be used to determine the vehicle tax as follows:
• Cars that have been taken into use on 1 January 2001 or thereafter and have a total mass of
up to 2,500kg will be taxed based on their CO2 emissions.
• Vans that have been taken into use on 1 January 2008 or thereafter will be taxed based on their
CO2 emissions.
• Cars, vans and special vehicles that have been taken into use prior to the dates given above, as
well as vehicles lacking emissions data, will be taxed based on their total mass.

82
FINLAND
• Usually, the Vehicle Register does not contain emissions data measured according to the
European Commission type-approval system for recreational vehicles. However, a recreational
vehicle can be taxed based on its CO2 emissions provided that the manufacturer has obtained
an EC type approval indicating the vehicle’s CO2 emissions. In practice, the taxation of
recreational vehicles is based on total mass, because only a small minority of the newest
recreational vehicles carry an EC type-approval indicating the vehicle’s CO2 emissions.
Vehicle tax rate
The basic tax component of the vehicle tax based on the vehicle’s CO2 emissions varies from €53.29
to €654.44 (Figure 2). The taxation of WLTP type-approved cars is based on WLTP CO2 values and the
WLTP tax table since 1 January 2020.
Figure 2: Annual basic tax (€) based on carbon dioxide emissions
The basic tax component for cars and vans based on total mass varies from €222.65 to €632.18. For
example, for a car weighing 1,800kg, the annual vehicle tax will be €284.70. The tax on vans belonging
to the most common emissions categories varies from €264 to €305. About 80% of all vans taxed
based on their total mass belong to the category 2,201-3,000kg and thus have an annual tax rate
between €365 and €508.80. Most recreational vehicles have a total mass from 3,400 to 3,500kg and
thus have an annual tax rate of €632.18.
2.2 POWER TAX

Vehicles using fuel other than petrol must pay a power tax. For diesel vehicles, the rates (in cents per
day) are as follows:
Passenger cars 5.5c/d (€24.45pa) for every 100kg of total mass or part thereof
Vans and recreational vehicles 0.9c/d (€3.28pa) for every 100kg of total mass or part thereof

83
FINLAND
For passenger cars using fuel other than petrol or diesel, the rates (in cents per day), are as follows:
Electricity 1.5c/d for every 100kg of total mass or part thereof
Electricity and petrol 0.5c/d for every 100kg of total mass or part thereof
Electricity and diesel 4.9c/d for every 100kg of total mass or part thereof
Methane 3.1c/d for every 100kg of total mass or part thereof
For vans using methane, the rate is as follows:

Methane 0.9c/d for every 100kg of total mass or part thereof
Daily rates (in cents) for every 100kg of total weight or part thereof are:
Number of axles Without trailer With semi-trailer With trailer
2 0.6 for weight ≤ 12t – –
1.3 for weight > 12t 2.2 2.1
3 0.8 1.3 1.4
4 0.7 1.2 1.3
≥5 0.6 1.0 1.2
The corresponding annual amounts (in euros) for every 100kg of total weight or part thereof are:
Number of axles Without trailer With semi-trailer With trailer
2 2.19 for weight ≤ 12t – –
4.75 for weight > 12t 8.03 7.67
3 2.92 4.75 5.11
4 2.55 4.38 4.75
≥5 2.19 3.65 4.38
3 TAXES ON MOTORING
3.1 EXCISE DUTIES ON FUELS

Fuel type €
Unleaded gasoline 0.7596/l
Diesel fuel 0.5948/l
Bioethanol, RES 0.5008/l
Bioethanol, double credit 0.3598/l
Biodiesel, RES 0.4330/l
Biodiesel, with paraffin, double credit 0.2900/l
Note: RES, Renewable energy sources
The excise duties for road traffic fuels are dependent on the energy content and CO2 emissions of the
fuel. The origin of the components used in the fuel may cause differences in the way fuels are taxed.
Renewable components such as alcohols produce less CO2 and are therefore subject to a lower tax
rate than fossil fuels. In principle, gases and alcohols are taxed in the same way. Electricity used for
vehicle fuel is taxed in the same way as electricity for private consumption.

84
11
ACEA TAX GUIDE 2021
France
Chapter prepared by
Maria Ianculescu
[email protected]
CCFA
French Automobile Manufacturers’ Association
Rue de Presbourg 2
FR — 75008 Paris
T. +33 1 49 52 51 25
F. +33 1 49 52 51 88
www.ccfa.fr
FRANCE
1 ENGINE RATINGS
The fiscal power is used for tax purposes. The tax amount is based on CO2 emissions and engine power
characteristics of the vehicle.
For new vehicles powered by an internal combustion engine and approved by the WLTP of 1 November
2019, the formula is:
PA = 1.80 × (P/100)2 + 3.87 × (P/100) + 1.34
For other internal combustion engine vehicles, the formula is:

1.6
PA = CO2/45 + (P/40)
For electric vehicles, the formula is:
PA = 1 + 0.136 P
where:
PA represents the administrative or fiscal power
P represents the real engine power, expressed in kilowatts
CO2 refers to the carbon dioxide emissions, expressed in grams per kilometre (g/km)
Both actual engine power and CO2 emissions are measured in accordance with the EU type-approval
procedures.
2.1 VAT
In general, all automobile commercial transactions are subject to VAT, depending on their category, rate
and taxation base.
2.1.1 VAT on new vehicles

The taxation is assessed on the total selling price:
Passenger cars are taxed at the rate of 20% on the selling pre-tax price.
In general, the tax is not recoverable except for certain cases (eg car-hire firms subject to VAT).
Commercial vehicles are taxed at the rate of 20% on the pre-tax selling price.
The tax is recoverable by legal individuals eligible for deduction of VAT.
2.1.2 VAT on used vehicles
The transactions between private individuals are not taxable.
Only transactions carried out between professional dealers are subject to VAT, generally assessed on
the difference between the purchase price and selling price.
Passenger cars The taxation rate is 20% on the pre-tax price; the tax is not
General rule recoverable.
Commercial vehicles The taxation rate is 20% on the pre-tax price; the tax is
recoverable for legal individuals.

AC E A TA X G U I D E 2 0 2 1 1
86
FRANCE

VAT on the purchase of passenger cars is not recoverable. Similarly, VAT on the purchase of goods and
services for passenger cars is subject to same provisions as VAT on the purchase of cars. It is therefore
not permissible to deduct VAT from any goods or services relating to motor vehicles (ie repairs,
purchase of spare parts and components, parking space rentals, etc). However, the constraint on the
deduction right does not apply to a passenger car-hire business. A passenger car-hire business may
deduct its own VAT and VAT on the purchase of vehicles and related goods and services.
VAT on the purchase of commercial vehicles is recoverable by the taxable individual.

2.2.2 Depreciation and capital allowances
a) Passenger cars
The depreciation is based on the after-tax purchase price. The depreciation may vary depending on the
equipment, provision and transportation costs. The depreciation of passenger cars using the declining
balance method is not permissible. Passenger cars can only be amortised in accordance with the linear
depreciation method. The estimation of a vehicle’s lifespan is the basis for determining the appropriate
depreciation method. In general, accounting and tax regulations set the depreciation period to four or
five years. Hence, the applicable rates are within 20-25%. The amount of depreciation of passenger cars
is limited by the following criteria: vehicle price, CO2 emissions based on the corresponding emissions
test cycles (NEDC or the electronic certificate of conformity, ie WLTP):
Applicable depreciation ceilings according to CO2g/km Before 1 January After 1 January 2021
values 2021
Price threshold Emissions test CO2 limit (g CO2/km)
(€)
30,000 Any ≤ 20
20,300 New (electronic CoC, WLTP) 21–50
Old (NEDC) 20–60
18,300 WLTP 50–165 50–160
NEDC 60–136 60–131
9,900 WLTP ≥ 165 ≥ 160
NEDC ≥ 136 ≥ 131
b) Commercial vehicles
The purchase or leasing of new commercial vehicles over 2.6t powered by natural gas, electricity, ED95
fuel, hydrogen or B100 fuel can be amortised by the companies through their corporate tax.
The amount of deduction is calculated as a fraction of the vehicle’s price. The fraction is determined by
the vehicle’s permissible laden weight, as indicated below:
Permissible laden weight (t) Deduction percentage (%)
≥ 2.6 and < 3.5 20
≥ 3.5 and < 12 60
> 12 40
The deduction applies to vehicles purchased until 31 December 2021.
2.2.3 Deduction of charges on taxable profit
The service or repair expenses of a passenger car owned or hired by a company are deductible without
limit, under the premises that the expenses are in the direct interests of the business and not intended
to increase the vehicle’s value or to significantly extend its period of use.

2
87
FRANCE

As of 1 January 2021, the registration taxes are simplified and harmonised:
• Three taxes are merged with the malus which will thus be reinforced: tax on high power
passenger cars (> 36hp), annual tax on high-CO2-emitting vehicles (>190g) and CO2 tax on used
vehicles.
• The two fixed taxes are merged: regional tax and tax to the National Agency in charge of the
registration process (ANTS).
2.3.1 Regional component of the registration tax
The tax on the vehicle registration certificate is determined and collected by the regions.
The tax depends on the fiscal power of the vehicle and on the horsepower cost in the region. It is
therefore difficult to indicate precise registration costs throughout France. The charges per unit
horsepower vary from €27(minimum) to €51.20 (maximum) in 2020 and have still not been announced
in several regions for 2021. Most regions give an exemption (50% or 100%) to low emissions vehicles
powered by compressed natural gas (CNG), liquefied petroleum gas (LPG) or electricity as well as to
petroleum/diesel hybrid E85 vehicles.
Additionally, for vehicles (PC, LCV under 3.5t) in use for over 10 years, for commercial vehicles over 3.5t
and for road tractors in use for less than 10 years, the rate is reduced by 50%. For commercial vehicles
over 3.5t and road tractors in use for over 10 years, the rate is reduced by 75%.
The tax on trailers is 1.5 of the regional tax on one unit of horsepower.
2.3.2 Operating tax: Flat-rate tax & dispatch charges
The fixed tax, up to €4 per certificate issued, is assigned to the National Agency managing the
registration process.
2.3.3 Additional parafiscal charges

The parafiscal tax finances the development of vocational training in the transport sector. It applies to
all new commercial vehicles (trucks and coaches).
The amount of the tax is as follows:
Permissible laden weight of the vehicle (t) Amount (€)
≤ 3.5 34.00
3.5 < x ≤ 6 127.00
6 < x ≤ 11 189.00
> 11, or public transportation vehicles 285.00
Certain vehicle types or operations are exempt from the tax: collection vehicles, licence-free vehicles,
vehicles with a provisional registration certificate, etc.
2.4 CO2 BASED BONUS–MALUS SYSTEM AND SCRAPPING SCHEME

The bonus–malus system, introduced in January 2008, imposes a tax or subsidy on passenger cars’
first registration in France, including vehicles previously registered in another EU member state.
The tax is determined by the vehicle’s CO2 emissions:
• Tax (malus) is paid by the car buyer
• Subsidy (bonus) is given to car buyer; the subsidy is limited to new vehicles
• Incentive premium (prime à la conversion) is granted to a car buyer for scrapping old vehicles

AC E A TA X G U I D E 2 0 2 1 3
88
FRANCE
2.4.1 CO2-based Malus

Before 2020, the bonus–malus system had to provide balance. The revenue from the malus was used
to finance the grants for purchasing low emission vehicles (see 2.4.2). In January 2020, the balance
requirement was abandoned, and the malus scheme was modified.
The calculation of the malus depends on whether the vehicle is type-approved (Whole Vehicle Type
Approval – WVTA).
For type-approved vehicles, the malus scheme is based on the CO2 emissions.
Since 1 March 2020, the malus is based on WLTP values and is described by the curve Malus
2020_WLTP. Adopted in the end of 2020, the recent Finance law 2021 includes a substantial increase
of the maximum payable malus for new high-CO2-emitting vehicles, from a level of €20,000 in 2020 to
€30,000 in 2021. The comparison between the 2021 and 2020 malus curves is illustrated below:
40 000 €
Malus_2022_WLTP
Malus_2021_WLTP Malus_2021_WLTP
219
Malus_2020_WLTP
30 000 €
30 000 €
Malus_2020_WLTP
213
20 000 €
20 000 €
Malus_2021_WLTP
133
10 000 € 50 €
Malus_2020_WLTP
138
50 €
0€
125 gcO2/km 145 gcO2/km 165 gcO2/km 185 gcO2/km 205 gcO2/km 225 gcO2/km
Exemption / reduction
• For flex-fuel vehicles emitting less than 250g CO2/km, the CO2 reference values are reduced by
40%.
• Large families can benefit from malus reduction. The reduction applies to families with at least
three dependent children on the purchase of a vehicle with at least five seats and is limited to
one vehicle per household. The CO2 emission rate is reduced by 20g/km per child starting from
the third child.
• For disabled persons, the malus is not levied.

89
4
FRANCE
For passenger cars not approved under the WVTA, the malus is based on the fiscal power (hp) as
follows:
Fiscal power (hp) Amount of the tax (€)
≤4 0.00
5 250.00
6 2,825.00
7 3,425.00
8 5,950.00
9 6,550.00
10 9,075.00
11 9,675.00
12 12,200.00
13 12,800.00
14 15,325.00
15 15,925.00
16 18,450.00
17 19,150.00
18 22,500.00
19 25,000.00
20 27,500.00
> 20 30,000.00
After January 2008, the malus on imported vehicles previously registered outside France is reduced by
10% per year after the date of first registration. The malus is applicable on the first registration in France.
2.4.2 Mass-based malus
The 2021 finance law introduces a new component of the malus based on the Mass in running order
(MRO) as of 1 January 2022, for all new passenger cars over 1,800kg at a rate of €10 per kg within the
limit of the difference between the maximum CO2-malus (€40,000) and the CO2-malus value. The
addition of mass-malus and CO2-malus cannot exceed the maximum CO2-malus.
Some examples are given in the table below:

As of 1 January 2022 If CO2 = 190g/km and MRO = 1,900kg If CO2 = 223g/km and MRO = 2,800kg
CO2- malus €12,012 €40,000
Mass-malus €1,000 €0
Total €13,012 €40,000
Exemption
For BEV and PHEV with an urban ZEV autonomy over 50km, the mass-malus is not levied.

AC E A TA X G U I D E 2 0 2 1 5
90
FRANCE
2.4.3 Bonus
Light vehicles (passenger cars and light commercial vehicles) emitting less than 20g CO2/km are
eligible for a bonus depending on the vehicle’s price and the customer type. The vehicle price includes
the acquisition price and the rental of the battery. For 2021, the bonus is as follows:
Vehicle type Vehicle price (€) From 1 June 2020 to
≤ 20g CO2/km 30 June 2021 (€)
Bonus for Bonus for
households legal person
PC/LCV ≤ 45,000 7,000 5,000
PC/LCV > 45,000 and 3,000
≤ 60,000
PC 0
> 60,000
Hydrogen PC or LCV 3,000
Vehicle type > 21 and ≤ 50g CO2/km with Urban ZEV autonomy > 50km
PC/LCV ≤ 50,000 2,000
PC/LCV > 50,000 0
As of 20 January 2021, a bonus for electric or hydrogen N2/N3 and M2/M3 vehicles is introduced as
below:
Vehicle category N2 or N3 M2 or M3
Amount of the bonus (€) 50,000 30,000
For motorised two or three-wheeled electric vehicles, the bonus is €900.
For electric bikes purchased by low-income households, the bonus is €200.
2.4.4 Scrapping scheme
The scrapping scheme (prime à la conversion) is a premium granted to car buyers for scrapping old
vehicles.
In the context of the COVID-19, the government had put in place the COVID-19 recovery scrappage
scheme on 1 June 2020. After reaching its 200,000-vehicle cap two months later, the new conversion
premium was tightened starting 3 August 2020 as below:
The vehicles eligible for scrapping will remain the same: diesels registered before 2011 and petrol
models registered before 2006.
The income ceiling is lowered in order to target lower-income buyers. Participants can receive either
€5,000 or €2,500 for an electric or plug-in hybrid (PHEV) vehicle depending on their income. Meanwhile,
purchases of diesel- or petrol-powered vehicles can be boosted by either €3,000 or €1,500, similarly
based on income.

AC E A TA X G U I D E 2 0 2 1 6
91
FRANCE
Old vehicle categories eligible for scrapping premium

Diesel car first registered before 2011
Petrol car first registered before 2006
Household type
New vehicle categories eligible Household with income ≤ €6,300 Household with Household with
for scrapping premium or a commuting distance > income income > €13,489
30km or driving distance over ≤ €13,489 or legal entity
12,000km/year
CO2 ≤ 50g
CO2/km: PC €5,000 €2,500 €2,500
new or used
car LCV €5,000 €5,000 €5,000
Petrol Euro 5/6:
51–137g Crit'Air 1
CO2/km Diesel Euro 5/6:
WLTP: new Crit'Air 2, €3,000 €1,500 €0
or used car first registered
(PC or LCV) after 1
September 2019
3.1 BASIS OF TAXATION

• Graduated tax on motor vehicles: engine rating (fiscal power)
• CO2 emissions
• Specific tax on certain motor vehicles (former axle tax): weight
3.2 RATES
The ownership taxes are settled annually independently of the vehicle’s use.
3.2.1 Tax on company cars (TVS)
The registration and use of companies’ passenger cars are subject to annual tax. The tax is not
applicable to vehicles intended exclusively for sale, for short-term rental or for public transportation
as their core activity. The amount of the tax is the sum of two components. The first is based on the
CO2 emissions or, when unavailable, on the fiscal power. The second is based on the atmospheric
pollutant emissions and engine type.
The tax applies to passenger cars and pickups with at least five seats with the exemption of vehicles
used exclusively for ski lift operations and in skiing areas.
A. The calculation basis of the CO2 component
For type-approved vehicles first registered after 1 June 2004 and purchased or owned by companies
since 1 January 2006, the tax is calculated according to the CO2 emissions.
In 2021, for WLTP type-approved vehicles the tax is set per CO2 gram as below:

AC E A TA X G U I D E 2 0 2 1 7
92
FRANCE
For vehicles with unavailable CO2 values, the first component of the TVS is based on the fiscal power:
Fiscal power (hp) Amount of the tax (€)
≤3 750.00
4–6 1,400.00
7–10 3,000.00
11–15 3,600.00
> 15 4,500.00
For low CO2 emission vehicles, the exemptions are provided as below:
Energy of the powertrain
CO2 emissions (g/km)
Diesel CNG, LPG, super-ethanol E85, Petrol+Electric/CNG/LPG
≤ 60 No exemption Definitive exemption
61–100 Exemption during 12 quarters
101–110 No exemption
B. The calculation basis of the atmospheric pollutant emissions component

The amount of the component depends on the fuel type:
Year of first registration Petrol and equivalent (€) Diesel and equivalent (€)
Until 31 December 2000 70.00 600.00
2001–2005 45.00 400.00
2006–2010 45.00 300.00
2011–2014 45.00 100.00
From 2015 onwards 20.00 40.00
Note: Electric vehicles and vehicles with CO2 emissions below 60g/km are exempt from this tax component
The TVS is extended to vehicles owned or rented by employees or executives who benefit from the
reimbursement of mileage expenses. The amount of tax is calculated according to the coefficient based
on the number of kilometres reimbursed:
8

93
FRANCE
Number of kilometres reimbursed by the company Coefficient applicable to the tax on company cars (%)
0–15,000 0
15,001–25,000 25
25,001–35,000 50
35,001–45,000 75
> 45,000 100
A reduction of €15,000 is applicable to the total amount of tax due by the company on all vehicles owned
or rented by employees or executives.
3.2.2 Specific tax on certain motor vehicles (former axle tax)
The tax is levied on vehicles with a total maximum permissible weight over 12t. The vehicles for
passenger transportation are exempt from the tax. From 1 July 2022, the tax is paid once per year, in
January of the year following the use of the vehicle. From 1 January 2019, the circuses, horses and
collection vehicles are exempt.
The tax rates below apply from July 2016:

Vehicle category Total Annual tariff (€)
permissible Pneumatic suspension or Other suspension
laden weight (t) motor axle suspension systems
I. Motor vehicles
a) two axles ≥ 12 124.00 276.00
b) three axles ≥ 12 224.00 348.00
c) four axles and more 12–27 148.00 228.00
≥ 27 364.00 540.00
II. Articulated vehicles with tractive unit and semi-trailer
a) Semi-trailer with one axle 12–20 16.00 32.00
≥ 20 176.00 308.00
b) Semi-trailer with two axles 12–27 116.00 172.00
27–33 336.00 468.00
33–39 468.00 708.00
≥ 39 628.00 932.00
c) Semi-trailer with three axles 12–38 372.00 516.00
≥ 38 516.00 700.00
III. Trailers ≥ 16 120.00 120.00
For vehicles used in combined rail-road systems, the tax is reduced by 75%.
4 TAXES ON MOTORING
4.1 DRIVING LICENCE TAX

From 1 January 2020, the driving licence tax has been phased out.
Nevertheless, the replacement of lost driving licence is charged with €25 at the national level.
4.2 FUEL TAXES

The progressive alignment of fuel taxes between petrol and diesel, initiated in 2015, has been stopped
since 2019 due to the ‘yellow vests’ movement.

AC E A TA X G U I D E 2 0 2 1 9
94
FRANCE
Breakdown of average fuel prices at the pump – 8 January 2021

Super 95 – E10 Super 98 Diesel LPG
Pre-tax product price €/100l 46.40 50.65 45.80 58.30
Internal tax and excise duties €/100l 67.18 69.14 60.91 11.53
VAT €/100l 22.72 23.96 21.34 13.97
Total taxes €/100l 89.90 93.10 82.25 25.50
Percentage of taxes to final price % 65.96 64.77 64.23 30.43
Final price €/100l 136.30 143.75 128.05 83.80
From the second semester of 2017, fuel taxes are deductible on the total fuel consumption by road
transport companies for transportation of passengers or goods.
From 2020, for transportation of goods the deduction range lies between €14.21 and €17.45 per 100l.
For transportation of passengers, the range lies between €20.21 and €23.45 per 100l depending on the
region.
Farmers and taxi drivers underlie a specific reimbursement system.
4.3 INSURANCE TAXES

From January 2016, the compulsory third-party insurance (responsabilité civile) is generally subject to
33% tax with the exemption of certain contract types for specific vehicles.
Contrary to VAT, the insurance tax is not deductible.
Commercial vehicles with total permissible laden weight over 3.5t are subject to 15% tax.
In addition, all vehicles are subject to a parafiscal charge of 2% on the basic insurance premium (third
party insurance). From January 2017, other guarantee types are subject to another parafiscal tax of
€5.90 per insurance policy.

AC E A TA X G U I D E 2 0 2 1 10
95
12
ACEA TAX GUIDE 2021
Germany
Chapter prepared by
Dr Karoline Kampermann
[email protected]
VDA
German Association of the Automobile Industry
Behrenstraße 35
DE — 10177 Berlin
T. +49 30 897 842 0
F. +49 30 897 842 600
www.vda.de
GERMANY
1.1 VAT
VAT is applied at the rate of 19% on the sale of new vehicles.
VAT is imposed on the commercial sale of every second-hand vehicle. It is computed on the difference
between the selling price and the purchase price.
Private sales between individuals are not subject to taxation.

1.2.1 VAT
VAT paid on the purchase of commercial vehicles is totally deductible.
1.2.2 Depreciation
Passenger cars
Passenger cars for professional use are generally written down over six years.
Commercial vehicles
A. Commercial vehicles (general depreciation rules)1
The depreciation of commercial vehicles is as follows:

Trucks 9 years
Trailers, semi-trailers and containers 11 years
Buses and coaches 9 years
Other omnibuses 9 years
B. Commercial vehicles (sector-based depreciation rules)

Trucks < 7.5t > 7.5t
Articulated semi-trailers, dumpers 6 years 5 years
Trailers and semi-trailers 6 years
Containers 5 years
1.3 REGISTRATION FEES

The average duties collected at the time of an initial registration amount to €26.30.
1.4 ENVIRONMENTAL BONUS FOR ELECTRIC AND HYBRID VEHICLES

From 16 November 2020, an amended regulation on the environmental bonus for the purchase or
leasing of electric cars came into force, valid until 31 December 2025.
1 As the years vary for each sector, please check the depreciation individually as needed

97
GERMANY
Innovations premium for BEVs and FCEVs2

Net list price under €40,000 Net list price over €40,000
Federal share Manufacturer Federal share Manufacturer Minimum

(€) share (€) (€) share (€) holding time
(months)
Purchase 6,000 3,000 5,000 2,500 6
Leasing period 1,500 750 1,250 625 6

6-11 months
Leasing period 3,000 1,500 2,500 1,250 12
12-23 months
Leasing period 6,000 3,000 5,000 2,500 24
> 23 months
Source: Federal Office for Economic Affairs and Export Control
Innovations premium for externally chargeable hybrid EVs

Net list price under €40,000 Net list price over €40,000
Federal share Manufacturer Federal share Manufacturer Minimum

(€) share (€) (€) share (€) holding time
(months)
Purchase 4,500 2,250 3,750 1,875 6
Leasing period 1,125 562.50 937.50 468.75 6

6─11 months
Leasing period 2,250 1,125 1,875 937.50 12
12─23 months
Leasing period 4,500 2,250 3,750 1.875 24
> 23 months
Source: Federal Office for Economic Affairs and Export Control
In addition, criteria for the latter also include a maximum emission value of 50g of CO2/km or an
electrical range of at least 40km. This range requirement applies until 31 December 2021, subsequently
it will be increased to 60km. From 1 January 2025 it will increase to 80km.
Previously, the cost of this bonus was equally shared between the government and the manufacturer.
Due to the COVID-19 pandemic, the federal’s share was doubled.
The regulation does not only apply to new cars and to cars not older than 12 months and whose mileage
does not exceed 15,000km. Used purely electric and fuel-cell vehicles receive a bonus of €5,000. For
plug-in hybrid and range-extended electric vehicles, the bonus is €3,750.
2
Battery electric vehicles (BEV) and fuel cell electric vehicles (FCEV)

98
GERMANY
2 MOTOR VEHICLE TAX3

Passenger cars CO2 emissions and cylinder capacity (from July 2009)
Cylinder capacity and emission group (before July 2009)
Trucks, coaches and buses Total weight in kilograms, exhaust emission group and noise
Trailer Total weight in kilograms
2.2 RATES
2.2.1 Two-wheeled vehicles
€1.84 for every 25cm³ of cylinder capacity per annum.
2.2.2 Passenger cars
In 2020, the German Government changed the annual circulation tax for new passenger cars newly
registered as of 1 January 2021. The tax base as before is made up of two components, cylinder
capacity and CO2 emissions. The CO2 element is no longer applied as a linear rate but increases
progressively. The tax base regarding cylinder capacity remains unchanged and amounts to €2 per
100cm³ for petrol cars or €9.50 for diesel cars. Every gram above the minimum level of 95g/km is taxed
between €2 and €4 and it applies to both diesel and petrol cars. The method used to measure the
relevant CO2-data is the WLTP procedure.
In the case of passenger cars registered before 1 July 2009, the annual circulation tax will continue to
be based on emission classes and on cylinder capacity.
(1) Taxation system for new registered cars (from 1 January 2021)
Based on CO2 emissions and cylinder capacity
CO2-component
• Tax-free base margin: 95g/km
• Above tax-free margin: tariff depends on cars emissions (WLTP)
CO2 g/km Tax (€)

> 95–115 2.00
> 115–135 2.20
> 135–155 2.50
> 155–175 2.90
> 175–195 3.40
> 195 4.00
Capacity component
• Additional tax-base dependent on cylinder capacity for each 100cc and parts thereof:
o €2.00 for petrol engines
o €9.50 for diesel engines
Temporary tax exemption for electric vehicles
3The motor vehicle tax is currently being reformed. The new regulation is expected to enter into force at the beginning of next
year

99
GERMANY
For initial registrations from 1 January 2016 until 31 December 2025, there is a tax exemption of up to
ten years for electric vehicles (purely electric or fuel-cell vehicles, not hybrid vehicles). It will be granted
until 31 December 2030 at the latest. After the exemption, the car tax will amount to 50% of €11.25 (up
to 2,000kg), €12.02 (up to 3,000kg) or €12.78 (up to 3,500kg) for each 100cc or part thereof.
Special regulation for particularly emission-reduced passenger cars

The tax for keeping especially emission-reduced passenger cars with spark-ignition or compression-
ignition engines and carbon dioxide emissions up to 95g/km shall not be levied for five years from the
date of first admission to circulation in the amount of €30 per year if the vehicle is first registered in the
period from 12 June 2020 to 31 December 2024.
Tax relief for light commercial vehicles

Owners of light commercial vehicles with a total weight of up to 3.5t are to receive tax benefits. From
2021, the weight-based tax rates for commercial vehicles are to apply instead of the higher, emission
related rates for passenger cars.
(2) Passenger cars registered between July 2009 and 31 December 2020
Every gram above the minimum level of 95g/km CO2 is taxed at €2 (as of 1 January 2014). The
minimum level was 120g/km in 2009, and 110g/km in 2012. The method used to measure the
relevant CO2-data has changed for all passenger cars registered from September 2018. The NEDC
Procedure has been replaced with the WLTP Procedure.
CO2-component
• Tax-free base margin:
o 120g/km from July 2009
o 110g/km from 2012
o 95g/km from 2014
• Above tax-free margin: linear tariff of €2 per g CO2/km
Capacity component
• Additional tax-base dependent on cylinder capacity for each 100cc and parts thereof:
o €2.00 for petrol engines
o €9.50 for diesel engines
(3) Taxation system for vehicles registered before July 2009

Based on emission classes and cylinder capacity
Old motor vehicle tax rates are in euros per 100cc category (irrespective of the fuel type used and
including hybrid vehicles)
Emission group Petrol engines Diesel engines

Euro 3 and better 6.75 15.44
Euro 2 7.36 16.05
Euro 1 and equivalent 15.13 27.35
Euro 0 (previously for cars that may be driven during ozone alarms) 21.07 33.29
Euro 0 (other cars) 25.36 37.58
2.2.3 Commercial vehicles (trucks, coaches and buses)
With a permissible total weight up to 3,500kg

≤ 2,000kg €11.25 (for every 200kg or part thereof)
2,000–3,000kg €12.02
3,000–3,500kg €12.78

100
GERMANY
With a permissible total weight exceeding 3,500kg
a) Pollution categories S2, S3, S4, S5 and EEV (enhanced environmentally friendly vehicle)
(with/without category G1)
≤ 2,000kg €6.42 (for every 200kg or fraction thereof)
2,000–3,000kg €6.88
3,000–4,000kg €7.31
4,000–5,000kg €7.75
5,000–6,000kg €8.18
6,000–7,000kg €8.62
7,000–8,000kg €9.36
8,000–9,000kg €10.07
9,000–10,000kg €10.97
10,000–11,000kg €11.84
11,000–12,000kg €13.01
12,000–13,000kg €14.32
Up to a maximum of €556 (> 12,200kg)
b) Pollution category S1 (with/without category G1)

2,000–3,000kg €6.88
3,000–4,000kg €7.31
4,000–5,000kg €7.75
5,000–6,000kg €8.18
6,000–7,000kg €8.62
7,000–8,000kg €9.36
8,000–9,000kg €10.07
9,000–10,000kg €10.97
10,000–11,000kg €11.84
11,000–12,000kg €13.01
12,000–13,000kg €14.32
13,000–14,000kg €15.77
14,000–15,000kg €26.00
> 15,000kg €36.23
Up to a maximum of €914 (> 15,400kg)
c) Noise category G1
2,000–3,000kg €10.30
3,000–4,000kg €10.97
4,000–5,000kg €11.61
5,000–6,000kg €12.27
6,000–7,000kg €12.94
7,000–8,000kg €14.03
8,000–9,000kg €15.11
9,000–10,000kg €16.44
10,000–11,000kg €17.74
11,000–12,000kg €19.51
12,000–13,000kg €21.47
13,000–14,000kg €23.67
14,000–15,000kg €39.01
> 15,000kg €54.35
Up to a maximum of €1,425 (> 15,600kg)

101
GERMANY
d) Other vehicles
2,000–3,000kg €12.02
3,000–4,000kg €12.78
4,000–5,000kg €13.55
5,000–6,000kg €14.32
6,000–7,000kg €15.08
7,000–8,000kg €16.36
8,000–9,000kg €17.64
9,000–10,000kg €19.17
10,000–11,000kg €20.71
11,000–12,000kg €22.75
12,000–13,000kg €25.05
13,000–14,000kg €27.61
14,000–15,000kg €45.50
> 15,000kg €63.40
Up to a maximum of €1,681 (> 15,800kg)
2.2.4 Trailers
For every 200kg or fraction thereof €7.46
Up to a maximum of €373.24 (10,000kg)
It should be noted that trailers and semi-trailers (apart from caravans) can be exempted from this tax
at the owner’s request. A surcharge must then be paid on the tractive unit (although the latter is exempt
if it is used exclusively for the delivery or collection of goods for transportation in an integrated rail–
road network).
The trailer surcharge for a period of one year is €300.
2.2.5 Motor caravans
The basis of the motor vehicle tax for motor caravans as from 1 January 2006 is the permissible total
weight in kilograms and the pollutant emissions.
Emission group S4
< 2,000kg €16.00 (for every 200kg or fraction thereof)
≥ 2,000kg €10.00
Up to a maximum of €800
Emission groups S1-S3
< 2,000kg €24.00
≥ 2,000kg €10.00
Up to a maximum of €1,000
Non-reduced emission
< 2,000kg €40.00
2,000–5,000kg €10.00
5,000–12,000kg €15.00
> 12,000kg €25.00
From 1 January 2010, motor caravans in the emission class S1 are taxed according to the rate for non-
reduced-emission vehicles.

102
GERMANY
3 TAXES ON MOTORING
3.1 FUEL TAXES

Prices in eurocents/litre in December 2020:
Diesel Super
Fuel price including distribution costs and compulsory blending 48.37 43.64
of biofuels
Excise duties 47.04 65.45
Subtotal 95.41 109.09
16% VAT 15.26 17.45
Price at the pump 110.67 126.54
3.2 INSURANCE TAXES

The total tax charge amounts to 19% of the premium.

The use of a company car for private motoring is treated as a benefit in kind under income tax. The rate
of taxation is generally based on the gross catalogue price of the company car and the distance
between the residence and the office of the employee. The taxable amount is 1% of the gross catalogue
price plus 0.03%, per month, of the gross catalogue price per kilometre distance between the residence
and the office of the employee.
As an alternative to the ‘1% method’, the private use value can also be ascertained by accounting for
individual costs (driver’s logbook method). This involves using receipts to account for the total vehicle
costs incurred and recording the relative proportions of private and other journeys in a properly
maintained driver’s logbook.
4.1 REDUCTION FOR PURELY ELECTRIC VEHICLES

To incentivise the use of electric vehicles provided as company cars, the German government has
implemented a tax adjustment for electric company cars that applies to both the 1% regulation and the
driver’s logbook method.
For electric vehicles that are handed over to an employee for private use for the first time after 31
December 2018, only half of the gross catalogue price will serve as taxation base. As a result, for users
of an electric company car the taxable amount is 0.5% of the gross catalogue price per month. The
halving of the tax base also applies to the distance between the residence and the office of the
employee. Under certain circumstances the same applies to journeys to the employee's home base.
The regulation will apply for ten years, ie until 31 December 2030. In addition, externally rechargeable
hybrid vehicles, ie plug-in hybrids (PHEVs), will also benefit from the tax reduction if the PHEV emits a
maximum of 50g of CO2/km or has an electrical range of at least 40km. This range requirement applies
until 31 December 2021, subsequently it will be increased to 60km. From 1 January 2025 it will increase
to 80km. For all other PHEVs, the existing deduction continues to apply. For electric vehicles with a
gross list price of up to €60,000 only one quarter of the gross catalogue price will serve as taxation
base. In this case, the taxable amount is 0.25% of the gross catalogue price per month.
The regulation does not apply only to new cars. Used cars can also be covered if they are handed to the
employee as a company car for the first time from January 2019.

103
GERMANY
4.2 CHARGING CURRENT TAX FREE

In addition, the benefit in kind of receiving charging current on the firm’s premises and the provision of
charging equipment by the employer are tax free for the employee from 1 January 2017 until 31
December 2030.
5.1 INSPECTION
Two road safety tests are set out under §29 of the StVZO (Straßenverkehrs-Zulassungs-Ordnung, the
law equivalent to the Highway Code stipulating the technical standards for approved types and
registration of motor vehicles):
• The principal test (Hauptuntersuchung (HU))

• The safety test (Sicherheitsprüfung (SP))
In addition, §47a of the StVZO provides for a pollutant emission test for vehicles (Abgasuntersuchung
(AU)). Finally, there are some tests for vehicles that are specially designed for the transport of
hazardous materials.
These periodic tests (HU and SP) are primarily undertaken by the TÜV (Technischer Überwachungs-
Verein), which has approximately 500 stations spread throughout the country, but also by some smaller
organisations (DEKRA and FKÜ). The SP is also performed by authorised garages. The emission test is
undertaken by TÜV, DEKRA, FKÜ and authorised garages.
5.2 COST OF THE INSPECTION

The cost of the inspection may vary among companies offering the periodic tests and depending on
the type of vehicle (passenger cars and trucks).
5.3 FREQUENCY OF MOTOR VEHICLE INSPECTION

Vehicles are subject to inspection at the following intervals:
Principal test (HU) Safety test (SP)
Private cars 36 months (first test) –
24 months (subsequent tests) –
Buses 12 months 6 months
Commercial vehicles < 3.5t 24 months –
3.5–7.5t 12 months –
7.5–12t 12 months 6 months
> 12t 12 months 6 months
Trailers < 0.75t 36 months (first test) –
24 months (subsequent tests) –
0.75–3.5t 24 months –
3.5–10t 12 months –
> 10t 12 months 6 months

104
13
ACEA TAX GUIDE 2021
Greece
Chapter prepared by
Dimitrios Patsios
[email protected]
HAMVIR
Hellenic Association of Motor Vehicle Importers’
Representatives in Greece
13 Andrea Papandrou Str.
GR — 151 24 Marousi, Athens
T. +30 210 689 1400
F. +30 210 685 9022
www.seaa.gr
GREECE
1.1 VAT
VAT at the rate of 24% is calculated on the net retail selling price, which is equal to the sum of the
landed cost (CIF – Cost, Insurance and Freight), the customs duty (for non-EU cars) and the distribution
gross profit. VAT is not applied to the Registration Tax.

Although it is defined as a consumption/registration tax, the Registration Tax (RT) must be settled,
together with the VAT, when a car is cleared through customs and is therefore comparable to customs
duty.
The registration tax for a new car is equal to:
RT = [Sum (Portion of Net Retail Price  coefficient of the portion)]  CO2 emissions coefficient
If the car imported is used, the RT is calculated in the same way, considering the net retail price (NRP)
of the car in Greece, at the time of its first registration in the foreign country, then it is reduced, according
to its body type and age (up to 95%, see table 1 below) and mileage (up to -10%) and finally is adjusted,
according to its Euro classification (see table 2 below).
Registration tax build up, according to each NRP portion:
Portion of the net retail price (€) Registration tax coefficient (%)
≤ 14,000 4
14,001–17,000 26
17,001–20,000 53
20,001–25,000 62
25,001–30,000 71
> 30,000 30
Deductions:
• HEV and PHEV with CO2 emissions equal or higher than 50g/km get a 50% RT reduction.
• PHEV with CO2 emissions less or equal than 50g/km get a 75% RT reduction.
• BEV have no RT reduction.
CO2 emissions coefficient

If a car is new or imported used and it was first registered in the EU after 1 January 2021, the CO2
emissions coefficient is as follows (WLTP cycle):
CO2 (g/km) – WLTP cycle Coefficient
≤ 130 0.95
131–156 1.00
157–182 1.10
183–208 1.20
209–234 1.30
235–260 1.40
261–325 1.60
> 325 2.00

106
GREECE
If a car is imported used and it was first registered up to 31 December 2020, the CO2 emissions
coefficient is as follows (NEDC cycle):
CO2 (g/km) – NEDC cycle Coefficient
≤ 100 0.95
101–120 1.00
121–140 1.10
141–160 1.20
161–180 1.30
181–200 1.40
201–250 1.60
> 250 2.00
Examples of RT on a new passenger car
If a passenger car has an NRP of €15,600 and 125g/km WLTP CO2 emissions, then the RT would be:
(14,000  4% + €1,600  26%) × (0.95) = €927.20.

107
GREECE
Table 1: Reduction on the Registration Tax, based on the age and body type of the imported used car
Age of car Reduction on RT (%)
(years) 4x4 (SUV, ATV) Hatchback Sedan Cabriolet Coupé/ Multipurpose
Roadster vehicle
0.5 11 9 15 11 12 9
1 22 19 30 22 25 19
1.5 25 24 33 26 25 23
2 29 28 36 30 29 27
2.5 35 32 40 33 32 33
3 37 37 43 36 36 36
3.5 44 43 50 42 41 43
4 50 49 57 48 47 49
4.5 56 55 64 54 53 55
5 62 61 72 60 59 61
5.5 66 64 74 64 63 64
6 68 67 76 67 66 67
6.5 71 70 78 69 68 70
7 73 72 80 72 71 72
7.5 75 74 81 74 73 75
8 77 76 83 76 75 77
8.5 79 78 84 78 77 78
9 80 80 85 79 79 80
9.5 82 81 86 81 80 82
10 83 83 87 82 82 83
10.5 84 83 88 83 83 84
11 85 84 89 84 84 85
11.5 86 85 89 85 85 86
12 87 86 90 86 86 87
12.5 88 87 90 87 87 88
13 88 88 90 88 87 89
13.5 89 89 91 88 88 89
14 90 89 91 89 89 90
14.5 90 90 91 89 89 91
15 90 90 91 90 89 91
15.5 90 90 91 90 89 91
16 95 95 95 95 95 95
Table 2: Adjustment of Registration Tax, based on Euro classification of an imported used car
Euro standard Adjustment of RT (%)
Euro 6c (WLTP) or newer –
Euro 6b (NEDC) +50
Euro 5b +100
Euro 5a +200
Euro 4 or previous +200

108
GREECE
1.2.2 Commercial vehicles
The registration tax is equal to:
RT = taxable value  basic coefficient  Euro adjustment coefficient
Taxable value
A) Commercial vehicles with a gross vehicle weight (GVW) up to 3.5t
New vehicles: the taxable value is the NRP of the vehicle, based on the price lists submitted to the
customs by the importers.
Imported used vehicles: the taxable value for RT is the NRP of the same type, variant and version of
vehicle, including the value of its accessories, at the year of registration of this vehicle in the Greek car
market, reduced by customs according to age.
B) Trucks with a GVW greater than 3.5t
New vehicles: the taxable value is the CIF value (import cost) of the vehicle.
Imported used vehicles: the taxable value for RT is the CIF value of the same type, variant and version
of vehicle, including the value of its accessories, at the year of registration of this vehicle in the Greek
car market, reduced by customs according to age.
Basic coefficient
For commercial vehicles with a GVW up to 3.5t, the basic coefficient is 8% for trucks with an open cargo
area and 10% with a closed cargo area.
For trucks with a GVW greater than 3.5t, the basic coefficient is 5%.
Euro adjustment coefficient
If the commercial vehicles are equipped with earlier anti-pollutant technology than Euro V, the
coefficient is 2.0 (tax increases by 100%). If they are equipped with Euro V technology, the coefficient
is 1.3 (tax increases by 30%) and if they are equipped with Euro VI technology, the coefficient is 1.0 (no
tax increase).
Electric commercial vehicles are exempt from RT. For buses and tractors, the RT equals one year’s
circulation tax.

109
GREECE
2.1 CIRCULATION TAX

Circulation tax is levied on an annual (calendar year) basis, paid during the last month of the previous
year. No reduction is applied if a vehicle is registered later in the year. Circulation tax is based on the
following criteria:
Basis of the circulation tax

Private passenger cars Engine capacity or CO2 emissions (for newer cars)
Coaches and buses Number of seats
Commercial vehicles Gross vehicle weight
2.1.1 Private passenger cars: annual circulation tax rates
A) Passenger cars registered in Greece before 31 October 2010
Engine Annual circulation tax Annual circulation tax (€) Annual circulation tax (€)
capacity (€) for cars with first for cars with first registration for cars with first registration
(cc) registration date before date in 2001–2005 date in 2006–2010
2000
0–300 22.00 22.00 22.00
301–785 55.00 55.00 55.00
786–1,071 120.00 120.00 120.00
1,072–1,357 135.00 135.00 135.00
1,358–1,548 225.00 240.00 255.00
1,549–1,738 250.00 265.00 280.00
1,739–1,928 280.00 300.00 320.00
1,929–2,357 615.00 630.00 690.00
2,358–3,000 820.00 840.00 920.00
3,001–4,000 1,025.00 1,050.00 1,150.00
> 4,000 1,230.00 1,260.00 1,380.00
Hybrid cars with an engine capacity of up to 1,549cc and a first registration date before 31 October 2010
are exempt from circulation tax. Hybrid cars with an engine capacity of 1,550cc or over and a first
registration date before 31 October 2010 are levied with an annual circulation tax equal to 60% of the
values shown in the above table based on their first registration date.
Example: the owner of a 1,800cc hybrid car with first registration date in Greece on 16 October 2004 is
liable to pay an annual circulation tax of: €300 × 0.6 = €180.
B) Passenger cars registered after 1 November 2020 until 31 December 2020
CO2 emissions (g/km) – NEDC cycle Coefficient for annual circulation tax (€)
0–90 0.00
91–100 0.90
101–120 0.98
121–140 1.20
141–160 1.85
161–180 2.45
181–200 2.78
201–250 3.05
> 250 3.72

110
GREECE
C) Passenger cars registered from 1 January 2021
CO2 emissions (g/km) – WLTP cycle Coefficient for annual circulation tax
(€)
0–122 0.00
123–139 0.64
140–166 0.70
167–208 0.85
209–224 1.87
225–240 2.20
241–260 2.50
261–280 2.70
> 281 2.85
Example: the owner of a vehicle emitting 149g/km of CO2 (WLTP) is liable to pay an annual circulation
tax of: 149  €0.70 = €104.30.
All hybrid cars, regardless of engine capacity, registered after 31 December 2010 are levied with an
annual circulation tax equal to the product of the CO2 coefficient shown in the table above and the CO2
emissions of the vehicle.
Example: a 3,000cc hybrid car with first registration date in Greece on 16 April 2011, and emitting
142g/km of CO2 is liable to pay an annual circulation tax of: 142 × €1.85 = €262.70.
The coefficients shown in the above apply also to all imported used cars provided that the car’s CO2
emissions are explicitly indicated on the registration certificate. Otherwise, the circulation tax is
calculated based on the engine capacity of the imported used car.
2.1.2 Commercial vehicles: annual circulation tax rates

Gross vehicle weight (kg) Tax (€)
≤ 1,500 75.00
1,501–3,500 105.00
3,501–10,000 300.00
10,001– 20,000 600.00
20,001–30,000 940.00
30,001–40,000 1,320.00
> 40,000 1,490.00
Tractors 300.00
2.1.3 Buses: annual circulation tax rates

Number of seats Tax (€)
≤ 33 210.00
34–50 410.00
> 50 510.00
2.2 PERSONAL INCOME PRESUMPTION SYSTEM

A presumption about an individual’s annual personal income is made, depending on their possessions
(including house, car, boat, etc) in the year they are being taxed for, based on the expenses/lifestyle
these imply. Regarding cars, the presumed income is calculated according to the car’s engine size (as
shown in the table below). If the individual’s declared income is lower than the calculated presumed
income based on their possessions, their personal income tax for the year is calculated on the (higher)
total presumed income.

111
GREECE
Engine size (cc) Accumulated income presumption (€)

0–1,200cc = €4,000
1,201–2,000cc = €600/100cc
2,001–3,000cc = €900/100cc
> 3,000cc = €1,200/100cc
1,200 4,000.00
1,400 5,200.00
1,600 6,400.00
1,800 7,600.00
2,000 8,800.00
2,500 13,300.00
3,000 17,800.00
4,000 29,800.00
5,000 41,800.00
Example: the presumed annual income for a vehicle with an engine capacity of 2,600cc is
calculated as follows:
[1,200cc + (100cc  8) + (100cc  6)] = 2,600cc
[€4,000 + (€600  8) + (€900  6)] = €14,200
The above-mentioned amounts are reduced by 30% for cars that are 5 to 10 years old and by 50% for
cars that are more than 10 years old.
BEV cars are exempted from the personal income presumption system, while PHEV cars are being rated
by their IC engine capacity.
2.3 LUXURY LIVING TAX

As of January 2012, a ‘luxury living’ annual tax is applied on the private ownership of all passenger cars
with an engine capacity greater than 1,929cc and not older than 10 years. This tax is based on the
presumed income of the car owner, which is described in section 2.2, and is equal to:
• 5% of presumed income annually for cars with an engine capacity greater than 1,929cc and up to
2,500cc;
• 13% of presumed income annually for cars with an engine capacity greater than 2,500cc.
The above amounts are reduced by 30% if the car is older than five years, while cars over 10 years old
are exempt from luxury living tax. In addition, if a car is owned for less than 12 months of the year, then
a reduced amount, based on months owned, is calculated.
Some examples of the annual luxury living tax are the following:
• €440 for a passenger car with an engine capacity of 2,000cc if the car is three years old
• €2,314 for a passenger car with an engine capacity of 3,000cc if the car is two years old
• €2,711.80 for a passenger car with an engine capacity of 4,000cc if the car is seven years old
• €0 for a passenger car with an engine capacity of 4,000cc if the car is 11 years old

112
GREECE
2.4 USE OF A COMPANY CAR

The use of a company passenger car increases an employee’s annual personal income. The amount by
which income is increased is based on the following table. Each percentage of the net retail price (NRP)
coefficient applies only on the value portion of the NRP it refers to and not on the total NRP value.
NRP of the car (€) Portion of NRP that is deemed as annual personal income (%)
0–14,000 4
14,001–17,000 20
17,001–20,000 33
20,001–25,000 35
25,001–30,000 37
> 30,000 20
According to the above table, the use of a company car with NRP of €16,000, increases the personal
income of the employee by €14,000 × 4% + €2,000 × 20% = €960.
The use of a company passenger car with up to 50g/km CO2 emissions and up to €40,000 NRP is
exempt from increasing the employee’s personal income.
If the car emits less than 50g/km, but has an NRP higher than €40,000, then a deduction of €40,000 is
applied to its NRP, before applying it to the table above.
As an example, a BEV car with NRP of €56,000 increases the personal income of the employee by €960,
the same as the non-electric car of NRP €16,000 given in the example above.
Company cars with an NRP of up to €17,000 that are provided exclusively for professional reasons (‘tool
cars’) are exempt from benefit in kind taxation.
2.5 ACCEPTED EXPENSES FOR COMPANY TAXATION

The annual expense of either leasing or renting a car is 100% deductible regarding the company’s
taxation.
The lease payment of a BEV car with an NRP up to € 40.000 is increased by 50% when applied to
company expenses, while the lease payment of a PHEV car up to 50g/km CO2 emissions and up to
€40,000 NRP is increased by 30% when applied to company expenses.
3 TAXES ON MOTORING
3.1 FUEL TAXES

The final retail price of fuels is derived as shown in the example below. Analysis of the retail price of
95 octane petrol (€1.60/l in December 2020):
Charge Calculation/derivation Amount (€/l)
Oil refinery cost (15/12/2020) 0.4735
State’s petroleum fee 1.2%  €0.4735/l 0.0057
Regulatory Authority for Energy fee €0.20/1.000l 0.0002
Special consumption tax (95 octane petrol) 0.7000
Customs fund fee 0.5%  €(0.4735 + 0.7)/l 0.0059
Petroleum company and gas station gross 0.1148
profit (including VAT)
VAT (24%) 24%  €(0.4735 + 0.0057 + 0.0002 + 0.7 + 0.3120
0.0059 + 0.1148)/l
Total Retail Fuel Price 1.6121

113
GREECE
Special consumption tax varies according to fuel type as follows:

• €0.700/l for petrol with special additives, replacing the old leaded petrol
• €0.700/l for unleaded petrol with an octane rating of less than 96.5
• €0.700/l for unleaded petrol with an octane rating of more than 96.5
• €0.440/l for diesel petrol, including €0.03/l special taxation for renewable sources of energy
• €0.430/l for LPG gas
• €0 for CNG gas
4 PERIODICAL INSPECTION OF VEHICLES
4.1 PERIODICAL TECHNICAL INSPECTION OF VEHICLES

In Greece, vehicles must pass a technical inspection, the details of which are shown below. Note that
the costs shown are those charged by state-owned Technical Inspection Centres; privately owned
centres set their own prices. VAT is included in the costs shown.
4.1.1 Private passenger cars
For cars sold as new, the first inspection must take place four years after the first registration, while
subsequent inspections must be done every two years thereafter. For imported used cars, inspection
must be carried when the foreign inspection certificate is no longer valid. Imported used cars with an
expired foreign certificate are not allowed to be registered. From whichever inspection, next ones follow
every two years afterwards.
Cost: €40.
A) Commercial vehicles weighing up to 3.5t

First inspection at four years after purchase, subsequent inspections every two years thereafter.
Cost: €48.
B) Commercial vehicles weighing more than 3.5t and up to 12t
First inspection at one year after purchase, subsequent inspections every year.
Cost: €69.
C) Commercial vehicles weighing more than 12t
Cost: €77.
D) Single deck buses up to 10m long
Cost: €66
E) Single deck buses more than 10m long
Cost: €76
F) Double deck and articulated buses
Cost: €81

114
14
ACEA TAX GUIDE 2021
Hungary
Chapter prepared by
Peter Erdelyi
[email protected]
MGE
Hungarian Vehicle Importers’ Association
Budapest, Vaci ut 18
HU — 1132 Budapest
T. +36 1 288 0068
F. +36 1 239 6029
www.mge.hu
HUNGARY
1.1 VAT
VAT is refundable for vans, trucks and buses, and for passenger cars that are purchased using
open−end leasing (leasing with residual value) pro rata on the basis of the official use of the car. VAT
is also refundable at operating leasing.
1.2 PROPERTY ACQUISITION FEE

The acquisition of a new or used vehicle is subject to a property acquisition fee, the rates of which are
as follows:
Property acquisition fee
Age (years)
kW/HUF rate 0−3 4−8 >8
0–40 550 450 300
41–80 650 550 450
81–120 750 650 550
> 120 850 750 650
There is no fee for so−called environmentally friendly cars (electric cars, plug−in hybrids). There is no
longer any fee for trucks with a gross vehicle weight over 3.5t.

There is no tax on so−called environmentally friendly cars (eg electric cars, plug−in hybrids etc).
A registration tax must be paid upon the first registration of a passenger car in Hungary.
The rates are based on environment protection classes in accordance with EU emission standards.
The rates (in HUF) in 2018 are as follows:
Tax Engine (cc) Euro 5 Euro 4 Euro 3 Euro 2 Euro 1 or lower
category
1 Below B1,100, D1,300 45,000 180,000 270,000 360,000 540,000
2 B1,100, D1,300 65,000 260,000 390,000 520,000 780,000
3 B1,400, D1,500 85,000 340,000 510,000 680,000 1,020,000
4 B1,600, D1,700 135,000 540,000 810,000 1,080,000 1,620,000
5 B1,800, D2,000 185,000 740,000 1,100,000 1,480,000 2,220,000
6 B2,000, D2,500 265,000 1,060,000 1,590,000 2,120,000 3,180,000
7 Above B2,500, D3,000 400,000 1,600,000 2,400,000 3,200,000 4,800,000
Above B3,000, D3,500 – – – 6,000,000 8,000,000
8 Electric vehicle 0 – – – –
9 Hybrid 76,000 – – – –
2011 year: only the lowest tax (it was for Euro 4 engine), just for comparison
Note: B, gasoline; D, diesel
The tax value of second−hand cars is reduced, taking account of their depreciation. The table below
contains the reduction factors. Each month started is considered a full month for the calculation.

116
HUNGARY
Time since first registration (months) Depreciation (%)

≤2 0.06
3–4 0.1
5–6 0.14
7–12 0.2
13–24 0.31
25–36 0.41
37–48 0.49
49–60 0.56
61–72 0.62
73–84 0.68
85–96 0.72
97–108 0.76
109–120 0.79
121–132 0.82
133–144 0.85
145–156 0.87
157–168 0.89
> 169 0.9
Depreciation of operational leased fleet
Months since start of lease Depreciation (%)
≤2 4
3–6 8
7–12 16
13–18 24
19–24 32
25–30 40
31–36 48
37–42 56
43–48 64
49–54 72
55–60 80
61–90 87
91–120 94
> 121 100
1.4 TECHNICAL EXAMINATION FEE

Vehicles must undergo a technical examination everyone to three years, depending on the type of
vehicle and its age. The fee amounts to:
Type of vehicle Fee (HUF)
Motorbike 4,360
Passenger car 6,290
N1 commercial vehicle 17,090
N2 or N3 commercial vehicle 24,950

117
HUNGARY
2.1 MOTOR VEHICLE TAX/YEARLY TAX

The motor vehicle tax is based on the capacity of the vehicle’s engine in kilowatts and the vehicle’s
year of production.
There is no tax on so−called environmentally friendly cars (eg electric cars, plug−in hybrids, etc).
The rates are as follows:

Passenger car less than 4 years old HUF 345/kW
Passenger car 4−7 years old HUF 300/kW
Passenger car 16 years old or older HUF 140/kW
Bus, coach or truck HUF 1,200/100kg
Other non−passenger vehicle or semi−trailer HUF 1,380/100kg
Passenger car with E registration plate HUF 10,000
Truck with E registration plate HUF 46,000
Vehicle with P registration plate HUF 230,000
Preferential reduction
Bus, coach or truck with Euro 2 engine 20%
Road tractor or semi−trailer with Euro 2 engine 30%
Bus, coach or truck with Euro 3 engine 30%
Road tractor of semi−trailer with Euro 3 engine 50%
2.2 COMPANY CAR TAX

Company−owned passenger cars are subject to a monthly company car tax.
There is no tax on so−called environmentally friendly cars (eg electric cars, plug−in hybrids, etc).
Company car tax
kW Environmental scale (HUF/month)
0–50 16,500 8,000 7,700
51–90 22,000 11,000 8,800
91–120 33,000 22,000 11,000
> 120 44,000 33,000 22,000
The motor vehicle tax can be deducted from the company car tax.

118
HUNGARY
3 TAXES ON MOTORING
3.1 FUEL TAXES
Fuel taxation is based on the quarterly oil world market price. If it is in a quarterly average below
$50, this translated into a tax increase of about 5 to 10 HUF/litre.
The sale of fuel is subject to VAT (27%), excise duty (variable) and a specific fuel tax, which is as
follows:
Leaded petrol HUF 124.00/l
Unleaded petrol HUF 120.00/l
Diesel (gas) oil HUF 120.00/l
VAT is refundable for vans, trucks and buses, but not for passenger cars.

119
15
ACEA TAX GUIDE 2021
Ireland
Chapter prepared by
Emma Mitchell
[email protected]
SIMI
The Society of the Irish Motor Industry
Upper Pembroke Street 5
IE — Dublin 2
T. +353 1 676 16 90
F. +353 1 661 92 13
www.simi.ie
IRELAND
1 ENGINE RATINGS
Ireland uses the engine capacity of the vehicle as the basis for computation of the annual road tax for
vehicles first registered in Europe prior to 1 July 2008 and a CO2 basis for vehicles first registered after
that date.
2.1 VAT
2.1.1 Acquisition of a new vehicle
The acquisition of a new vehicle gives rise to a charge to VAT at the rate of 23%.
VAT is calculated on the basic price of the vehicle before the Vehicle Registration Tax (VRT).
2.1.2 Acquisition of a second-hand vehicle
When a second-hand vehicle is acquired from a VAT-registered motor trader, it is subject to VAT on any
profit margin at the rate of 23%. VAT qualifying vehicles are subject to VAT at 23% on the full sale price.
In the event of a private sale between individuals, no tax is payable.
2.2 VEHICLE REGISTRATION TAX

2.2.1 VRT on new vehicles
VRT is imposed on private cars and on commercial vehicles and is determined as a percentage of the
open market selling price (OMSP) of the vehicle, which is the cash price at which it is expected to sell
in a consumer transaction. The OMSP is the total projected sale price and includes VAT and VRT itself.
For M1 vehicles (passenger cars) and some commercial vehicles (those that have more than three
seats and a GVW of less than 3,500kg), there are now two components to the VRT calculation: a
percentage applied on the OMSP and also a NOx calculation. The rates and band structures effective
for all first registrations (new and used imports) in Ireland from 1 January 2021 are:
CO2 calculation
Band CO2 emissions (g/km) VRT (%)
A1 0–50 7.00
A2 51–80 9.00
A3 81–85 9.75
A4 86–90 10.50
B1 91–95 11.25
B2 96–100 12.00
C 101–105 12.75
D 106–110 13.50
E 111–115 14.25
F 116–120 15.00
G 121–125 15.75
H 126–130 16.50
I 131–135 17.25
J 136–140 18.00
K 141–145 19.50
L 146–150 21.00
M 151–155 23.50
N 156–170 26.00
O 171–190 31.00
P 191–600 37.00

121
IRELAND
Used Imports
To create a level playing field between new cars and used imports, which have been subject to different
emissions tests, used imports subject to the old emissions test will have their CO2 values uplifted to a
level equivalent with the WLTP test to which all new cars are subject. The budget measures provide for
line equations that act as ‘multipliers’ which uplift NEDC CO2 values to WLTP equivalent levels. This
follows European Commission methodology. The NEDC CO2 value is inserted into one of two-line
equations (determined by whether the fuel type is petrol or diesel) and the resulting figure is equivalent
to what the vehicle emissions would be under WLTP. The line equations are shown below with an
illustration.
Petrol: y = x(0.9227) + 34.554

Diesel: y = x(1.1405) + 12.858
A NEDC tested petrol car has a CO2 value of 110g/km on the vehicle registration documentation which
would attract a rate of 13.50%. Revenue uplifts this CO2 value to a WLTP equivalent value as follows:
y = 110(0.9227) + 34.554 = 136
This car is then subject to an 18% VRT rate.
NOx calculation
All M1 vehicles (excluding electrics but including hybrids) registered after 31 December 2019 are liable
and will be charged nitrogen oxide (NOx) emissions as part of the payable VRT. Charges are applied on
a per-milligram basis, based on a car’s officially recorded emissions of NOx per kilometre. The scale
below outlines the amount payable with the charge applying on a cumulative basis.
NOx emissions (NOx mg/km or mg/kWh) Amount payable per mg/km or mg/kWh (€)
0–40 5.00
41–80 15.00
> 80 25.00
The NOx charge will be capped at a maximum of €4,850 for diesel vehicles and €600 for other vehicles.
Commercial vehicles
Since 1 January 2011, the VRT on commercial vehicles has been:

N1 vehicles (exceptions below) 13.3% of open market selling price
N1 vehicles where at the time of manufacture had less than four

seats and had a technically permissible laden mass that is greater
than 130% of the mass of the vehicle with bodywork in running
order
€200.00
From 1 April 2018, N1 vehicles that have four or more seats that
do not have the EU Bodycode of ‘BE’, are treated as Category A
VRT. This applies to both new and used imports based on the
OMSP and CO2 & NOx emissions of the vehicle
N2 vehicles €200.00

122
IRELAND
Hybrid, flexifuel and electric vehicles
Until December 2021, the €5,000 relief for Battery Electric Vehicles is tapered for vehicles with an OMSP
over €40,000, so that no amount of relief is available for BEVs with a value of over €50,000.
Grants
For 2021 the grant amounts are the following for qualifying vehicles:
• BEVs: up to €5,000
• PHEVs: up to €5,000 (see thresholds below)
• N1 BEVs: up to €3,800 – Commercial purchases
• M1 demonstrator models: up to €3,800
EV Grant Programme Performance Criteria Change to WLTP
Following the introduction of WLTP figures as the basis for new vehicle taxation in 2021, the vehicle
performance qualification criteria for the EV Grant Scheme are also being adjusted. From
1 January 2021, eligibility for EV grants will be based on WLTP performance data:
WLTP all electric range – WLTP combined CO2 – Speed performance on a
minimum (km) maximum (g/km) level surface (kph)
BEV ≥ 100 0 ≥ 100
PHEV ≥ 40 ≤ 65 ≥ 100
EV Grant Programme Performance Criteria Changes for PHEV under WLTP after 31 March 2021
For applications submitted after 31 March 2021, the PHEV qualification criteria under WLTP will be
adjusted as follows:
WLTP all electric range - WLTP combined CO2 – Speed performance on a
minimum (km) maximum (g/km) level surface (kph)
PHEV ≥ 50 ≤ 50 ≥ 100
2.2.2 VRT on second-hand vehicles
The importation of second-hand vehicles is liable to VRT. For imported second-hand cars and small
commercial vehicles registered for the first time in Ireland, VRT will be calculated on the basis of the
OMSP of such a local used vehicle on sale in the state. The rates of VRT applicable to second-hand
private cars and commercial vehicles are the same as those applied to new vehicles.

2.3.1 VAT exemption
The VAT paid by an enterprise on the purchase of a car is only partially deductible in limited cases for
businesses. A qualifying passenger motor vehicle is a vehicle that is used for at least 60% business
purposes (for a period of two years or more) and:
• was first registered for Vehicle Registration Tax (VRT) purposes on or after 1 January 2009 up
to 31 December 2020 and has CO2 emissions of less than 156g/km (ie CO2 emission bands A,
B and C) or
• was first registered for Vehicle Registration Tax (VRT) purposes on or after 1 January 2021 and
has CO2 emissions of less than 140g/km (ie CO2 emission bands A and B).
VAT on commercial vehicles is reclaimable by VAT-registered businesses.

123
IRELAND
The scheme of capital allowances and leasing expenses for cars used for business purposes links the
availability of such allowances and expenses to the CO2 emission levels of the vehicles.
The CO2 (WLTP) and allowable threshold for Wear and Tear Capital Allowances on company cars from
1 January 2021 are the following:
• VRT Bands A and B: the allowable expenditure for these cars will be the specified limit (currently
€24,000) regardless of the actual cost of the car
• VRT Band C: the allowable expenditure for these cars will be 50% of the specified limit,
regardless of the actual cost of the car
• VRT Bands D, E, F & G: no allowable expenditure
Vehicle category CO2 emissions (g/km)
A 0–120
B 120–140
C 140–155
D 155–170
E 170–190
F > 190

124
IRELAND
3.1 BASIS
Private vehicles Cylinder capacity for vehicles first registered in Europe before 1 July 2008
NEDC CO2 emissions for vehicles registered from 1 July 2008, WLTP emissions for
cars first registered for the first time from 1 January 2021
Commercial vehicles Deadweight
3.2 RATES
Private cars registered before 1 July 2008
Engine capacity Annual Half-year Quarterly Arrears (monthly)
(cc) (€) (€) (€) (€)
≤ 1,000 199.00 110.00 56.00 19.90
1,001–1,100 299.00 165.00 84.00 29.90
1,101–1,200 330.00 183.00 93.00 33.00
1,201–1,300 358.00 198.00 101.00 35.80
1,301–1,400 385.00 213.00 108.00 38.50
1,401–1,500 413.00 229.00 116.00 41.30
1,501–1,600 514.00 285.00 145.00 51.40
1,601–1,700 544.00 301.00 153.00 54.40
1,701–1,800 636.00 352.00 179.00 63.60
1,801–1,900 673.00 373.00 190.00 67.30
1,901–2,000 710.00 394.00 200.00 71.00
2,001–2,100 906.00 502.00 255.00 90.60
2,101–2,200 951.00 527.00 268.00 95.10
2,201–2,300 994.00 551.00 280.00 99.40
2,301–2,400 1,034.00 573.00 292.00 103.40
2,401–2,500 1,080.00 599.00 305.00 108.00
2,501–2,600 1,294.00 718.00 365.00 129.40
2,601–2,700 1,345.00 746.00 379.00 134.50
2,701–2,800 1,391.00 772.00 392.00 139.10
2,801–2,900 1,443.00 800.00 407.00 144.30
2,901–3,000 1,494.00 829.00 422.00 149.40
≥ 3,001 1,809.00 1,003.00 511.00 180.90
Electrical 120.00 66.00 33.00 12.00

125
IRELAND
New private cars registered between 1 July 2008 and 31 December 2020 (Category M1 only)
Band CO2 emissions Annual Half-year Quarterly Arrears
(g/km) (€) (€) (€) (monthly)
(€)
A0 0 120.00 66.00 33.00 12.00
A1 1–80 170.00 94.00 48.00 17.00
A2 > 80–100 180.00 99.00 50.00 18.00
A3 > 100–110 190.00 105.00 53.00 19.00
A4 > 110–120 200.00 111.00 56.00 20.00
B1 > 120–130 270.00 149.00 76.00 27.00
B2 > 130–140 280.00 155.00 79.00 28.00
C > 140–155 400.00 222.00 113.00 40.00
D > 155–170 600.00 333.00 169.00 60.00
E > 170–190 790.00 438.00 223.00 79.00
F > 190–225 1,250.00 693.00 353.00 125.00
G > 225 2,400.00 1,332.00 678.00 240.00
New private cars registered on or after 1 January 2021 (Category M1 only)
WLTP CO2
Band CO2 emissions Annual Half-year Quarterly Arrears (monthly)
(g/km) (€) (€) (€) (€)
A 0 120.00 66.00 33.00 12.00
A1 1–50 140.00 77.00 39.00 14.00
A2 > 50–80 150.00 83.00 42.00 15.00
A3 > 80–90 160.00 88.00 45.00 16.00
A4 > 90–100 170.00 94.00 48.00 17.00
A5 > 100–110 180.00 99.00 50.00 18.00
A6 > 110–120 190.00 105.00 53.00 19.00
B1 > 120–130 200.00 111.00 56.00 20.00
B2 > 130–140 210.00 116.00 59.00 21.00
C1 > 140–150 270.00 149.00 76.00 27.00
C2 > 150–160 280.00 155.00 79.00 28.00
D > 160–170 420.00 233.00 118.00 42.00
E > 170–190 600.00 333.00 169.00 60.00
F1 > 190–200 790.00 438.00 223.00 79.00
F2 > 200–225 1,250.00 693.00 353.00 125.00
G > 225 2,400.00 1,332.00 678.00 240.00
Goods vehicles
Unladen weight (kg) Annual (€) Half-yearly (€) Quarterly (€) Arrears (monthly)
(€)
3,000 333.00 184.00 94.00 33.30
3,001–4,000 420.00 233.00 118.00 42.00
4,001–12,000 500.00 277.00 141.00 50.00
> 12,000 900.00 499.00 254.00 90.00
Electric not over 1,500 92.00 – – 9.20

126
IRELAND
An articulated vehicle (ie vehicle and semi-trailer) is regarded as a single vehicle and motor tax is
payable on the basis of the unladen weight of the tractor unit plus the unladen weight of the heaviest
semi-trailer which will be used at any time during the period of the licence.
Large public service vehicles and youth/community buses

Seating capacity Annual (€) Half-yearly (€) Quarterly (€) Arrears (monthly)
(€)
9–20 154.00 85.00 43.00 15.40
21–40 202.00 112.00 57.00 20.20
41–60 403.00 223.00 113.00 40.30
> 60 403.00 223.00 113.00 40.30
Trade-licensed vehicles
Category of vehicle Initial trade Replacement trade
licence/plate licence/plate
Motorcycle only €59.00 (single plate) €38.00 (single plate)
All other vehicles €353.00 (pair of plates) €86.00 (pair of plates)
Miscellaneous vehicles
Type of vehicle Annual (€) Half-yearly (€) Quarterly (€) Arrears (monthly) (€)
Off-road dumper 885.00 491.00 250.00 88.50
General haulage tractor 333.00 184.00 94.00 33.30
Machine/workshop/contrivance 333.00 184.00 94.00 33.30
(including recovery vehicles)
Island vehicle 102.00 − − 10.20
Agriculture tractor, trench digger 102.00 − − 10.20
or excavator
Motor caravan 102.00 − − 10.20
Hearse 102.00 − − 10.20
Dumper or forklift truck 102.00 − − 10.20
Taxi or hackney cab 95.00 − − 9.50
School bus 95.00 − − 9.50
Cycle or tricycle:
electric 35.00 − − 3.50
75cc 49.00 − − 4.90
76cc–200cc 67.00 − − 6.70
> 200cc 88.00 − − 8.80
Pedestrian controlled vehicle 88.00 − − 8.80
Veteran and Vintage:
Motorcycle 26.00 − − 2.60
Any other vintage vehicle 56.00 − − 5.60
Exempt vehicles
The following vehicles are exempt from motor tax:

a) State-owned vehicles
b) Diplomatic vehicles
c) Vehicles exempted under the Disabled Drivers and Disabled Passengers (Tax Concessions)
Regulations, 1994 (SI No 353 of 1994)
d) Vehicles (including any cycle with an attachment for propelling it by mechanical power) not
exceeding 400kg in weight unladen adapted and used for invalids
e) Vehicles that are used exclusively for the transport (whether by carriage or traction) of lifeboats
and their gear or any equipment for affording assistance towards the preservation of life and
property in cases of shipwreck and distress at sea
f) Vehicles that are used exclusively for mountain and cave rescue purposes

127
IRELAND
g) Vehicles that are used exclusively for underwater search and recovery purposes
h) Vehicles that are used exclusively for the transport (whether by carriage or traction) of road
construction machinery that is built in as part of such vehicle or otherwise permanently attached
thereto, carries no load except articles or materials used for the purpose of the road construction
machinery and is used for no purpose other than the construction or repair of roads
i) Refuse carts, sweeping machines or watering machines used exclusively for cleansing public
streets and roads
j) Ambulances, road-rollers and fire engines
k) Vehicles kept by a local authority and used exclusively for the purpose of their fire brigade service
4 TAXES ON MOTORING
4.1 FUEL TAXES

Tax on fuel in cents per litre, based on pump prices in February 2021
UNLEADED DIESEL1
Price without tax (€/l) 44.85 48.00
Excise duty, petrol (duty 54.18; carbon tax 4.59; levy 2.00) 63.93 53.54
Excise duty, diesel (duty 42.57; carbon tax 5.33; levy 2.00)
VAT (23%) on product price and excise duty 25.02 23.36
Total taxes 88.95 76.90
4.2 INSURANCE TAXES

There is a 5% government levy on motor insurance premiums in Ireland.

Where a company car is available for the private use of an employee, the employee is liable for PAYE
(pay as you earn tax) and PRSI (pay-related social insurance) in respect of that use.
The notional pay to which PAYE and PRSI must be applied is determined by reference to the cash
equivalent of the private use of the company car. The cash equivalent is determined by applying a
percentage based on business mileage to the original market value (OMV) of the vehicle supplied
(whether the vehicle is owned acquired new or second-hand or leased by the employer).
VRT category Applies to all categories (%)
15,000 30
15,001–20,000 24
20,001–25,000 18
25,001–30,000 12
> 30,000 6
Small commercial vehicles 5
1All auto diesel sold in Ireland as of 1 March 2002 is low sulphur

128
IRELAND
6.1 CARS
Car testing has been in operation since 2000 as follows:
First test Due on fourth anniversary of date of first registration in Europe
Further tests (1) Every second year on anniversary date of first registration in Europe
Further tests (2) Annually for cars 10 years old or older on anniversary date of first registration
The test certificate is valid for two years (from the date the test is due based on the anniversary date of
first registration in Europe) for cars up to 10 years old, and one year thereafter. There is no link with
motor tax or insurance expiry date.
There is a single operator contracted by the state to deliver testing at 47 National Car Test (NCT)
centres located throughout Ireland and established solely for the purposes of car testing. The
contractor is independent of the motor industry.
Car test fee €55.00
Re-test costs €28.00
Note: both fees are inclusive of VAT
Re-tests that do not require the use of test equipment are free. Free re-tests cover minor items, for
example a visual inspection to check that faulty windscreen wipers have been replaced.
Enforcement is the responsibility of the Garda Síochána. Every eligible car must have an NCT disc
displayed on its windscreen; this disc indicates that a car has passed the test. Penalty points are issued
for non-display.
6.2 COMMERCIAL VEHICLES

Commercial vehicles are divided into two categories: vehicles with a gross vehicle weight (GVW) under
3,500kg are classified as light goods vehicles (LGVs). Since 1 September 2004, these vehicles have
been subject to an annual roadworthiness inspection. Vehicles with a GVW over 3,500kg are classed
as heavy goods vehicles (HGVs), and these vehicles are also subject to an annual roadworthiness
inspection. Commercial vehicle operators are obliged to present their vehicles for inspection at any one
of the 140 state-authorised Vehicle Testing Network test stations. If the vehicle passes the inspection,
the operator is obliged to carry the test certificate in the vehicle.
The re-test fee will be subject to the fee structure set out below. It should be noted that a re-test that
does not require the use of test equipment is not subject to a fee.
The test fees (exclusive of VAT) that apply from 17 October 2013 are as follows:
Class of vehicle Full test fee (€) Re-test fee
(incl CRW)2 (€)
Mechanically propelled vehicles, used for the carriage of passengers, 198.00 73.83
with more than 8 seats but fewer than 14 seats, excluding the driver’s
seat
Mechanically propelled vehicles, used for the carriage of passengers, 200.00 73.83
with 14 seats or more excluding the driver’s seat
Vehicles having a design gross weight exceeding 3.5t but not 146.52 47.26
exceeding 7.5t
Vehicles having a design gross weight exceeding 7.5t with 2 axles 171.16 59.08
Vehicles having a design gross weight exceeding 7.5t with 3 axles 201.67 73.83
Vehicles having a design gross weight exceeding 7.5t with 4 or more 220.38 82.69
axles
2 Certificate of roadworthiness

129
IRELAND
Trailers having a design gross weight exceeding 3.5t 141.95 53.15

Ambulances 145.00 47.26
Vehicles having a design gross weight not exceeding 3.5t 94.86 35.43
Motor caravans with 2 axles 76.86 35.43
Motor caravans with 3 or more axles 94.58 44.29
Note: all fees above are subject to VAT at 23%. Please note that the levy element is not subject to VAT

130
16
ACEA TAX GUIDE 2021
Italy
Chapter prepared by
Emanuela Pregnolato
[email protected]
ANFIA
Italian Association of the Automobile Industry
Corso Galileo Ferraris 61
IT — 10128 Torino
T. +39 011 554 65 11
F. +39 011 545 986
www.anfia.it
I TA LY
1.1 VAT
VAT is applied at the rate of 22% on the sales of new vehicles.
An exception is made for vehicles, motorcycles and motor vehicles owned by disabled people with the
engine capacity up to 2,000cc if powered by petrol and up to 2,800cc if powered by diesel. The vehicle
has to be used for the transport of a disabled person. In this case the rate applied is 4%.
The purchase of second-hand vehicles from a taxable person is subject to VAT.
Sales of cars or commercial vehicles between private citizens are not taxable.
1.2 REGISTRATION/TRANSFER TAX

1.2.1 Registration fees
A series of duties relating to the fulfilment of formalities with the various public institutions such as the
Italian Public Automobile Register (Pubblico Registro Automobilistico - PRA), are imposed on the
registration of motor vehicles. These are duties of an administrative or fiscal nature (‘stamp’) but apply
only to motor vehicles (there is no equivalent duty on any other product).
Their total amount is approximately:

First registration of vehicle
+ €150.00
(Emoluments, stamp duty, registration fees, licence plate)
Transfer of property (second-hand vehicle)

+ €100.00
(Emoluments, stamp duty, registration fees)
1.2.2 IPT
A tax (Imposta provinciale di trascrizione – IPT) is levied at a provincial level on the registration and
transfer of new and second-hand vehicles.

132
I TA LY
A. National rate
Type and horsepower Amount IPT (€)

A. Motor vehicles ≤ 53kW and buses and road tractors ≤ 110kW 150.81
B. Motor vehicles > 53kW 3.5119/kW
C. Buses and road tractors > 110kW 1.7559/kW
D. Motor vehicles to carry goods (tonnes)
≤ 0.7 199.35
> 0.7–1.5 290.25
> 1.5–3.0 326.40
> 3.0–4.5 380.63
> 4.5–6.0 452.93
> 6.0–8.0 519.56
> 8.0 646.60
E. Trailers to carry goods (tonnes)
≤ 2.0 265.98
> 2.0–5.0 356.36
> 5.0 452.93
F. Trailers to carry passenger (seats)
< 15 229.82
16–25 253.58
26–40 302.13
> 40 362.55
Each province can increase taxes for registration and transfer by up to 30% above the base rate.
Increase rate (%) Provinces
30 Agrigento, Alessandria, Ancona, Ascoli Piceno, Asti, Bari, Barletta-Andria-Trani, Belluno,
Bergamo, Biella, Bologna, Brescia (1), Brindisi, Cagliari, Caltanissetta, Campobasso,
Caserta, Catania, Catanzaro, Chieti, Como, Cosenza, Cremona, Cuneo, Enna, Fermo,
Firenze (2), Foggia, Forlì-Cesena, Frosinone, Genova, Gorizia, Imperia, Isernia, L’Aquila, La
Spezia, Lecce, Lecco, Livorno, Lodi, Lucca, Macerata, Mantova, Massa Carrara, Matera,
Messina, Milano, Modena, Monza e Brianza, Napoli, Novara, Nuoro, Oristano, Padova (4),
Palermo, Parma, Pavia, Perugia, Pesaro Urbino (4), Pescara, Piacenza, Pisa, Pistoia,
Potenza (4), Prato, Ragusa, Ravenna (4), Reggio Calabria, Rieti, Rimini, Roma (2), Rovigo,
Salerno, Sassari, Savona, Siena, Siracusa, Sud Sardegna, Taranto, Teramo, Terni, Torino
(2-3), Trapani, Treviso, Varese, Venezia, Verbano-Cusio-Ossola, Vercelli, Verona, Vibo
Valentia, Viterbo
25 Crotone, Sondrio, Ferrara
20 Arezzo, Avellino, Benevento, Friuli Venezia Giulia Region, Grosseto, Latina, Reggio Emilia,
Vicenza (5)
0 Aosta, Bolzano, Trento
Notes:
1) Increase of 15% for vehicles powered by LPG, CNG, hydrogen or electricity; vehicles leased without a driver; and vehicles for
public transport.
2) No increase for vehicles leased without a driver; vehicles for public transport; and vehicles for transport of goods on behalf
of third parties or on one’s own account, for the benefit of undertakings engaged in road transport.
3) Increase of 30% for formalities that are not subject to VAT and 10% for formalities that are subject to VAT.
4) For vehicles powered by LPG, CNG or electricity, and for hybrids, the increase is 20%.
5) No increase for vehicles powered by LPG, CNG or electricity.

133
I TA LY
B. Exemption from/reduction in IPT

State laws have fixed exemptions from and/or reductions in the amount of IPT:
1. Vehicles that are at least 30 years old have a fixed rate of IPT of €51.65
2. Vehicles (diesel < 2,800cc; petrol or hybrid < 2,000cc; electric < 150kW) for disabled people are
duty free
3. Sales from private citizens to motor vehicle dealers are duty free
4. Each province can reduce IPT for particular types of vehicles or owners (eg green vehicles,
national non-profit organisations)
5. For special vehicles (eg concrete mixers, milk tankers), IPT is one-quarter the usual rate

Passenger cars1
VAT Proportion of VAT deductible

Instrumental use (use aimed at fulfilling the object of the 100%
specific activity of the enterprise): vehicles for transportation
of goods, taxis, driving schools, renting and leasing
companies
Non-instrumental use (of vehicles registered in the 40% until the end of 2022 (EU Council
company’s name) Decision No 2019/2138/EU published in the
EU Official Journal of 13 December 2019
Use by agents and trade representatives 100%
Use by professionals 40% (100% for instrumental use)
Deductibility of costs and depreciation allowances for Proportion of costs deductible

company cars
Instrumental use (use aimed at fulfilling the object of the 100%
specific activity of the enterprise) (eg rental companies)
Use for public services (eg taxis)
Use for driving lessons
Use by agents and trade representatives 80% of costs and depreciation allowances not
exceeding €25,822.84
Use by professionals 20% of costs and depreciation allowances not
exceeding €18,075.99
Company cars used by employees for more than 70% of costs
6 months + 1 day = 183 days
Company cars (registered in company’s name) for non- 20% of costs and depreciation allowances not
instrumental use exceeding €18,075.99
1.4 BONUS MALUS SCHEME

The Italian Budget Law introduced in 2019 a new incentive scheme called ‘Bonus/Malus’ for the
replacement of polluting vehicles. The bonus/malus is a one-off amount calculated at the first
registration of the vehicle. It has started to apply to newly registered passenger cars as of 1 March 2019
and will last until the end of 2021. The Italian Budget Law, valid for 2021, extended and modified the
incentive scheme for the purchase of motor vehicles and the bonus/malus scheme, binding the dealers
to give a discount of the same amount as the governmental bonus.
1 The treatment is the same whether these are purchased, leased or rented

134
I TA LY
Bonus
• Limit: €60m for 2019 and €70m for each of the years 2020 and 2021 for BEVs and PHEVs.
Extra limit for 2021 for all types of power supply: €120m for Extra Bonus + €250m for
scrapping + €50m for LCVs
• For the purchase or leasing of new passenger cars (M1) of €50,000 maximum sale price.
Vehicle's price inferior to €40.000 (VAT excluded) if CO2 emissions exceed 61g/km.
• (alternative) Households with an Equivalent Economic Situation Indicator (ISEE) of less than
€30,000 who purchase in Italy, by 31 December 2021, or buy in finance leases, new electric
cars with a power of less than 150kW, with a list price of less than €30,000 (excluding VAT),
are recognised a contribution equal to 40% of the expenses incurred. This bonus cannot be
cumulated with another bonus or extra bonus.
Passenger cars (M1)
CO2 emissions1 (g/km) Bonus (€)2 Extra bonus (€)3 Discount by dealer (€)4
0–20
with scrapping 6,000 2,000 2,000
without scrapping 4,000 1,000 1,000
21–60
61–1355
with scrapping ─ 1,500 2,000
1 NEDC/NEDC2 until 31 December 2020; WLTP starting from 1 January 2021
2 With scrapping Euro 1-2-3-4
3 Extra bonus is valid only for 2021. In case of scrapping, extra bonus is valid for cars registered before 1 January 2011
4
Binding discount by dealer
5
This bonus is valid until 30 June 2021
Light commercial vehicles (N1)1
Total ground mass (t) Electric (€) Hybrid or Other types (€)
Alternative fuel (€)
0–1.9
without scrapping 3,200 1,200 800
2–3.29
3.3–3.5
1
This scheme is valid only for new registrations of LCVs from 1 January till 30 June 2021
Malus
• Tax on new registrations of passenger cars (M1)
• Vehicles with CO2 emissions > 160g/km
• It does not apply to special purpose vehicles

135
I TA LY
CO2 emissions1 (g/km) Malus (€)

161─175 1,100
176─200 1,600
201─250 2,000
> 250 2,500
1 NEDC/NEDC2 until 31 December 2020; WLTP starting from 1January 2021

136
I TA LY
2.1 BASIS
Cars Engine rating calculated on the basis of kW and Euro
standards (except cars powered by electricity, LPG or
CNG and hybrid cars)
Coaches and buses Engine rating calculated on the basis of kW
Commercial vehicles with GVW < 12t Global weight2
Commercial vehicles with GVW ≥ 12t Global weight, number of axles and full pneumatic
shock absorption
Special vehicles (eg road tractors, motor caravans) Engine rating calculated on the basis of kW
2.2 RATES
An ownership tax (formerly circulation tax) is levied on all vehicles registered by the PRA, irrespective
of whether they are on the road or stationery. Individual regions can modify the base rate.
Passenger cars: specific rates by region (annual rates)

Standard kW Region/province
Basilicata Molise Marche Calabria Toscana Prov. Abruzzo Piemonte
Emilia Lazio Bolzano Campania
Romagna Liguria
Lombardia3
Puglia
Prov.Trento
Sicilia
Umbria,
Valle
d’Aosta
Base rate BR + BR + BR + BR + 5% BR - 10% BR + 21% BR +
(BR) 7%/17% 8% 10% 6% < 100kW
8% > 100kW
10% > 130kW
Euro 5-6 ≤ 100 2.58 Trento 2.76 2.79 2.84 2.71 1.99 3.12 2.73
2.06 Euro 5 Euro 6
1.96 Euro 6
> 100 3.87 Trento 4.14 4.18 4.26 4.26 2.98 4.69 4.18
3.10 Euro 5 Euro 6
2.95 Euro 6
Euro 4 ≤ 100 2.58 2.76 2.79 2.84 2.71 2.32 3.12 2.73
> 100 3.87 4.14 4.18 4.26 4.26 3.48 4.69 4.18
Euro 3 ≤ 100 2.70 3.09 2.92 2.97 3.12 2.43 3.27 2.86
> 100 4.05 4.63 4.37 4.46 4.91 3.65 4.91 4.38
Euro 2 ≤ 100 2.80 3.24 3.02 3.08 3.23 2.52 3.39 2.97
> 100 4.20 4.85 4.54 4.62 5.08 3.78 5.08 4.54
Euro 1 ≤ 100 2.90 3.38 3.13 3.19 3.35 2.61 3.51 3.07
> 100 4.35 5.07 4.70 4.79 5.37 3.92 5.27 4.70
Euro 0 ≤ 100 3.00 3.53 3.24 3.30 3.47 2.70 3.63 3.18
> 100 4.50 5.30 4.86 4.95 5.45 4.05 5.45 4.86
2 Taxation based on kW (and not on GVW) is applied to vehicles N1 < 12t GVW registered since 3 October 2006 by a body-
specific code (F0), four seats or more and value kW/tonnes > 180
3
From 2020 Lombardia applies a discount of 15% if the tax of ownership is paid with a direct bank debit

137
I TA LY
From 2012 (Law No 214 of 22 December 2011), cars more powerful than 185kW attract an additional
tax of €20 for each kilowatt over 185kW. The additional charge is reduced after 5, 10 and 15 years from
the date of manufacture of the vehicle by 40%, 70% and 85% respectively, and after 20 years from the
date of manufacture the charge is no longer due.
Buses
Region4
Calabria, Basilicata, Emilia Romagna, Lombardia, Prov. Abruzzo, Toscana Marche
Lazio, Piemonte, Puglia, Prov. Trento, Sicilia, Bolzano Campania
Liguria Umbria, Valle d’Aosta
€/kw 3.23 2.94 2.65 3.56 3.39 3.17
Commercial vehicles with GVW < 12t5

Sicilia Basilicata
Calabria
Prov. Emilia
Payload Prov. Lazio
Abruzzo Umbria Trento Molise Romagna Toscana Liguria Campania
(kg) Bolzano Puglia
Valle Lombardia
d’Aosta Piemonte
From To €
0 400 27.61 24.96 19.11 21.14 17.20 22.82 28.99 25.10 27.32 23.94
400 800 38.65 34.94 25.18 29.61 22.66 31.95 40.58 35.14 38.25 33.50
800 1,000 49.70 44.93 32.37 38.07 29.13 41.07 52.19 45.18 49.18 43.08
1,000 1,500 66.26 59.90 43.16 50.76 38.84 54.77 69.57 60.24 65.57 57.43
1,500 2,000 93.87 84.86 61.15 71.90 55.04 77.58 98.56 85.34 92.90 81.35
2,000 2,500 121.48 109.82 79.13 93.05 71.22 100.40 127.55 110.44 120.22 105.29
2,500 3,000 149.11 134.78 97.12 114.20 87.41 123.22 156.57 135.55 147.54 129.21
3,000 3,500 176.72 159.74 115.10 135.34 103.59 146.04 185.56 160.65 174.87 153.15
3,500 4,000 204.33 184.70 133.09 156.50 119.78 168.86 214.55 185.75 202.18 177.09
4,000 4,500 231.94 209.66 151.07 177.64 135.96 191.68 243.54 210.85 229.50 201.00
4,500 5,000 259.55 234.62 169.06 198.80 152.15 214.50 272.53 235.95 256.83 224.94
5,000 6,000 287.16 259.58 187.04 219.94 168.34 237.32 301.52 261.05 284.15 248.87
6,000 7,000 320.29 289.53 208.63 245.32 187.77 264.70 336.30 291.17 316.94 277.58
7,000 8,000 353.42 319.48 230.21 270.70 207.19 292.08 371.09 321.29 349.72 306.30
Commercial vehicles with GVW ≥ 12t
Class 2 axles 3 axles 4 axles or Abruzzo Basilicata Emilia Calabria Puglia Liguria
more Lombardia Romagna Lazio
Piemonte
Tonnes €
> ≤ > ≤ > ≤
1 12 15 15 19 362.45 299.55 295.93 329.50 341.89 339.72
2 19 21 23 25 403.69 333.63 330.53 366.99 382.18 378.93
3 21 23 25 27 445.57 368.23 364.10 405.06 421.43 418.69
4 15 501.18 414.20 409.55 455.62 473.59 470.95
5 23 570.55 471.53 466.88 518.68 539.18 536.29
6 27 29 639.91 528.85 523.69 581.74 605.29 600.48
7 29 815.51 673.98 607.35 741.37 701.35 703.31
4 Only regions attributed to Automobile Club d’Italia (ACI) services

5
Only regions attributed to ACI services

138
I TA LY
The tax is reduced by 20% when a commercial vehicle is equipped with a full pneumatic shock
absorption system.
Commercial vehicles with GVW > 12t6
Class 2 axles 3 axles 4 axles Toscana Sicilia Molise Prov. Umbria Campania
or more Prov. Trento Bolzano
Valle
d’Aosta
Tonnes €
> ≤ > ≤ > ≤
1 12 15 15 19 394.88 205.55 254.20 185.00 312.97 298.08
2 19 21 23 25 441.42 229.31 283.49 206.38 349.12 333.08
3 21 23 25 27 486.75 253.06 313.33 227.75 385.28 267.45
4 15 547.00 300.58 352.01 270.52 432.79 413.06
5 23 622.76 378.56 425.51 340.70 493.73 499.31
6 27 29 699.11 396.64 449.83 356.98 552.61 528.05
7 29 810.06 587.21 661.47 528.49 644.02 775.51
The tax is reduced by 20% when a commercial vehicle is equipped with a full pneumatic shock absorption
system.
Commercial vehicles: additional tax (€) for trailers/semi-trailers7
Vehicle type Abruzzo Basilicata Prov. Bolzano Emilia Piemonte

(global weight) Campania Sicilia Romagna Puglia
Valle d’Aosta
< 3.5t 31.25 25.82 – – –
> 3.5t and < 8t 93.74 77.47 70.20 (> 6t) 77.47 –
> 8t and < 18t 312.46 258.23 234.00 258.23 258.00 (> 6t)
≥ 18t 687.40 568.10 513.00 568.10 568.00
Road tractors 687.40 568.10 513.00 568.10 568.00
with 2 axles
Road tractors 968.62 800.51 720.00 800.51 800.00
with 3 axles
Vehicle type Toscana Calabria Lazio Prov. Trento Molise Lombardia

(global Liguria Umbria
weight)
< 3.5t – 28.41 – 27.63 –
> 3.5t and < 8t 89.48 (> 6t) 85.22 77.47 82.89 –
(> 6t)
> 8t and < 18t 298.25 284.05 258.23 276.31 267.00
(> 6t)
≥ 18t 656.16 624.91 568.10 607.87 585.00
Road tractors 656.16 624.91 568.10 607.87 585.00
with 2 axles
Road tractors 924.19 880.56 800.51 856.55 825.00
with 3 axles
6Only regions attributed to ACI services

7
Only regions attributed to ACI services

139
I TA LY
2.3 EXEMPTION/REDUCTION FROM OWNERSHIP TAX

Electric vehicles are exempt from paying vehicle taxes for five years from the date of first registration.
From the end of this period, they must pay a charge equal to a quarter of the amount for the
corresponding petrol vehicle (DPR 39/53). In many regions, vehicles exclusively powered by LPG and
CNG are exempted from 75% of the ownership tax five years after the first registration.
A reduction is allowed for cars more than 30 years old, as follows:
Reduction in annual ownership tax for cars > 30 years old

Regions Basilicata, Emilia Lazio, Marche Molise Calabria, Abruzzo, Toscana
Romagna, Umbria, Valle Liguria Lombardia, Campania
d’Aosta, Prov. Bolzano, Piemonte,
Prov. Trento, Sicilia Puglia
€ 25.82 28.40 27.88 28.00 30.00 31.24 29.82
Stability Law 2015 (Law No 190 of 29 December 2014) eliminates the exemption of road tax for vehicles
with a registration age between 20 and 30 years as recorded in the historical registers, but in some
regions (Emilia Romagna, Toscana, Lazio, Umbria, Prov. Trento, Prov. Bolzano and Piemonte) a
reduction is allowed also for cars aged 20-29 years.
Other types of reduction:
100% Cars used by disabled persons (up to 2,000cc for petrol and 2,800cc for diesel)
100% Cars owned by a non-profit organisation
100% Hybrid vehicles (for five years from first registration)
100% Electric cars (for five years from first registration)
75% Cars used in public service
75% Electric, CNG, LPG cars (after five years from first registration)
50% Commercial vehicles (up to 12t GVW) for specific purposes (eg garbage trucks)
50% Cars for hire (with driver)
30% Buses for hire (with driver) and buses for public transport
40% Cars used by driving schools
20% Commercial vehicles > 12t GVW with full pneumatic shock absorption system

140
I TA LY
3 TAXES ON MOTORING
3.1 FUEL TAXES

Prices 2020 (average national price) (€/l) Unleaded1 Diesel1 LPG1
Cost of product + distribution profit 0.445 0.463 0.349
Manufacturing tax 0.728 0.617 0.147
VAT 0.258 0.237 0.109
Special funds CNG cylinders ─ ─ ─
Total taxes 0.986 0.854 0.256
Prices at the pump 1.431 1.317 0.605
1 Prices are a weighted average of annual prices based on monthly consumption up to January 2021
Insurance taxes
The ‘third-party’ premiums collected by insurance companies must cover the following taxes:
• A tax imposed on insurance premiums. The provinces of the ordinary statute regions have
the right to vary, as from 2011, the rate of tax imposed on premiums on third-party cars.
The basic rate, fixed at 12.5%, may be varied upwards or downwards by a maximum of 3.5
percentage points. Almost all of the provinces increased the rate by the maximum amount
(ie to 16%)
• Tax of 10.5% allocated to the National Health Service (as partial coverage for road accident
and medical costs)
• Tax of 2.5% allocated to a Road Accident Victims Warranty Fund
A rebate on insurance tariffs for electric vehicles or vehicles with black boxes is offered by some
insurance companies.
Motorway usage taxes

The effective rate of the motorway usage tax varies according to:
• the class of the vehicle making use of the motorways (based on the number of axles on
the vehicle);
• toll per kilometre (based on features of the motorway, eg flat or mountainous);
• the owner of the motorway (state, private company or semi-public company).
In 2018, tolls income from motorways (Alpine tunnels not included) amounted to €8.309 billion, of
which total taxes (ie VAT) amounted to €1.498 billion.
3.2 PERIODIC TECHNICAL INSPECTION (PTI)

The Highway Code specifies that motor vehicles and their trailers in use should be kept in conditions
of maximum efficiency while ensuring safety and minimising noise and pollution. The regulation
establishes the technical requirements concerning the operation of motor vehicles and itemises those
devices and equipment that must be checked periodically during the review of a car. Particular attention
is paid to tyres, equivalent systems, braking, visual signalling devices and lighting, to limit noise and
emissions. The periodic car review thus aims to ensure security and maintenance of the noise and
pollution emissions within the limits of the law.
The first review should be carried out four years after first registration. Subsequent reviews should be
conducted every two years. These schedules apply to passenger cars, motor homes, vehicles for mixed
transport use, vehicles of overall mass not exceeding 3,500kg used for the transportation of property
and special-purpose vehicles.

141
I TA LY
An annual review is required for vehicles of more than nine seats (including the driver’s seat) used for
the transport of people, passenger cars used as taxis, chauffeur-driven vehicles, motor vehicles used
to transport goods and whose total mass with a full load exceeds 3,500kg, trailers and motor caravans
of total weight exceeding 3,500kg, buses, ambulances and atypical vehicles.
The review can be carried out at the Department of Motor Vehicles or at repair shops authorised by the
provinces. The cost of the review is €79.02.
The Highway Code specifies that, in 2021, if an owner fails to have a required review carried out, a fine
ranging from €173 to €1,998 will be imposed.
3.3 PERIODIC REVIEW OF CNG CYLINDERS

Cylinders for the storage of natural gas — in CNG4 8 — contained in vehicles M1 and N1, must be
reviewed at the workshops of the vehicle manufacturers’ network acknowledged by them.
The review of the cylinders is first performed four years after the registration of the vehicle and then
every two years thereafter.
The cost of auditing and testing CNG cylinders starts at about €120 for city cars and compact sedans
such as the Fiat Panda and Punto and the VW Golf. The cost of testing and auditing CNG cylinders
increases from €350 to €450 for cars equipped with four or five cylinders.
8 carbon cylinders with non-metallic body and reinforced by a sheath composed of a continuous filament impregnated with
resin (all composite)

142
17
ACEA TAX GUIDE 2021
Latvia
Chapter prepared by
Ingus Rutins
[email protected]
Latvian Automotive Association

Krasta Street 5
LV — 1050 Riga
M. +371 26524040
www.autoasociacija.lv
L AT V I A
1.1 VAT
The purchase of motor vehicles is subject to VAT at the rate of 21%. This amount is 100% deductible
for strictly company use and 50% deductible in case the company car is also used privately. For cars
over €50,000 (excl. VAT), the VAT is non-deductible for the car, fuels and maintenance costs.
1.2 MOTOR VEHICLE (REGISTRATION) TAX

As of 1 January 2017, motor vehicle registration tax is no longer applicable in Latvia.
1.3 REGISTRATION COSTS

Registration costs for all type of cars and buses are as follows:
Number plates €27.87
Registration document inspection €3.78
Registration fee €4.60
Registration certificate €7.68
Total €43.93
The first registration for an electric vehicle is free of charge.

Technical inspection annual fee (in €)
Brand−new vehicle technical inspection sticker (valid for 2 years) 2.85
Every subsequent inspection Passenger cars and light commercial vehicles
(from 3rd year) petrol 26.88
diesel 31.33
petrol + LPG 29.18
100% electric 25.65
Note: LPG= liquefied petroleum gas

Every subsequent inspection Commercial vehicles 3,500−12,000kg
diesel 40.06
petrol + LPG 37.30
100% electric 33.06

Every subsequent inspection Commercial vehicles > 12,000kg
diesel 47.35
petrol + LPG 44.61
100% electric 41.04
Trailers < 750kg 12.34
Trailers 751−3,500kg 15.99
Trailers 3,501−10,000kg 29.48
Trailers > 10,000kg 35.69
Motorcycles, tricycles and quad bikes (once every 2 years) 18.47

144
L AT V I A
1.4 NATURAL RESOURCES TAX

A national resources tax is payable on each vehicle registered in Latvia. It amounts to €55. It is paid
on registering a passenger car, light commercial vehicle or motorcycle.
2.1 ROAD TRAFFIC TAX

For passenger cars registered before 1 January 2005, road traffic tax is calculated on maximum gross
weight in kilograms:
GVW (kg) Road traffic tax (€)
≤ 1,500 38.00
1,501–1,800 81.00
1,801–2,100 137.00
2,101–2,600 174.00
2,601–3,000 210.00
3,001–3,500 242.00
> 3,500 274.00
For passenger cars registered between 1 January 2005 and 31 December 2008, road traffic tax is
calculated on maximum gross weight in kilograms plus engine capacity in cubic centimetres and
engine power in kilowatts:
≤ 1,500 15.00
1,501–1,800 32.00
1,801–2,100 55.00
2,101–2,600 70.00
2,601–3,000 84.00
3,001–3,500 97.00
> 3,500 110.00
Engine capacity (cc) Road traffic tax (€)
≤ 1,500 9.00
1,501–2,000 23.00
2,001–2,500 37.00
2,501–3000 55.00
3,001–3,500 91.00
3,501–4,000 160.00
4,001–5,000 228.00
> 5,000 297.00
Engine power (kW) Road traffic tax (€)
≤ 55 9.00
56–92 23.00
93–129 37.00
130–166 55.00
167–203 91.00
204–240 160.00
241–300 228.00
> 300 297.00

145
L AT V I A
For passenger cars registered between 1 January 2009 and 31 December 2020, the road traffic tax is
calculated by CO2 emissions in grams per kilometre:
CO2 (g/km) Road traffic tax (€)
≤ 50 0.00
51–95 12.00
96–115 48.00
116–130 84.00
131–155 120.00
156–175 144.00
176–200 168.00
201–225 216.00
226–250 265.00
251–275 336.00
276–300 408.00
301–350 552.00
> 350 756.00
For passenger cars registered from 1 January 2021, road traffic tax is calculated on CO2 emissions in
grams per kilometre as indicated below:
≤ 50 0.00
51–95 9.00
96–115 36.00
116–130 66.00
131–155 90.00
156–175 114.00
176–200 132.00
201–225 168.00
226–250 204.00
251–275 258.00
276–300 318.00
301–350 446.00
351–400 582.00
> 401 756.00

146
L AT V I A
For light commercial vehicles weighing less than 3,500kg and registered between 1 January 2012 and
31 December 2020, road traffic tax is calculated on CO2 emissions in grams per kilometre as
indicated below:
≤ 50 0.00
51–95 12.00
96–115 48.00
116–130 84.00
131–155 120.00
156–175 144.00
176–200 168.00
201–225 216.00
226–250 265.00
251–275 336.00
276–300 408.00
301–350 552.00
> 351 756.00
For all passenger and light commercial vehicles, there is a €300 additional fee for vehicles with an
engine capacity greater than 3,500cc. A 10% tax discount is applied to LPG and CNG vehicles.
For light commercial vehicles registered before 31 December 2004, the road traffic tax is calculated
on maximum gross weight in kilograms:
≤ 1,500 38.00
1,501–1,800 81.00
1,801–2,100 137.00
2,101–2,600 174.00
2,601–3,000 210.00
3,001–3,500 242.00
> 3,500 274.00
For commercial vehicles between 3,500 and 12,000kg, the road traffic tax is calculated on EURO
standards.
EURO Road traffic tax (€)
EURO 0, EURO I, EURO II 432.00
EURO III, EURO IV 300.00
EURO V 192.00
EURO VI or higher 144.00
If standard is unknown, the tax is calculated as EOURO 0.

147
L AT V I A
For commercial vehicles larger than 12,000kg, the road traffic tax is calculated on EURO standards.

EURO 0, EURO I, EURO II (< 3 axels) 420.00
EURO 0, EURO I, EURO II (> 4 axels) 540.00
EURO III, EURO IV (< 3 axels) 300.00
EURO III, EURO IV (> 4 axels) 390.00
EURO V (< 3 axels) 192.00
EURO V (> 4 axels) 264.00
EURO VI or higher (< 3 axels) 156.00
EURO VI or higher (> 4 axels) 192.00
For truck tractors road traffic tax is calculated on EURO standards.

EURO 0, EURO I, EURO II (< 3 axels) 420.00
EURO 0, EURO I, EURO II (> 4 axels) 540.00
EURO III, EURO IV (< 3 axels) 300.00
EURO III, EURO IV (> 4 axels) 390.00
EURO V (< 3 axels) 192.00
EURO V (> 4 axels) 276.00
EURO VI or higher (< 3 axels) 156.00
EURO VI or higher (> 4 axels) 240.00
Company car tax for passenger cars (monthly)

Engine capacity (cc) Road traffic tax (€)
Electric vehicles 10.00
≤ 2,000 31.00
2,001–2,500 49.00
2,501–3,000 66.00
> 3,000 82.00
Note: passenger cars registered before 1 January 2005: €46.00.
Vignette must be paid for commercial vehicles with gross weight more than 3,000kg for use of the
main roads.
Commercial vehicles with gross weight of 3,001kg to 3,500kg

Toll (€)
Day Week Month Year
6 14 28 300

148
L AT V I A
Commercial vehicles and road trains with gross weight of 3,501kg to 12,000kg
Emission class Toll (€)
Day Week Month Year
EURO 0, I, II 9 22 44 535
EURO III 8 20 40 484
EURO IV and higher 8 20 40 400
Commercial vehicles and road trains with gross weight of 12,001kg or more
Emission class Number of axles Toll (€)
Day Week Month Year
EURO 0 Up to 3 axles 12 30 61 611
EURO I
EURO II 4 axles or more 12 51 101 1,018
EURO III Up to 3 axles 9 24 48 484

4 axles or more 11 40 80 804
EURO IV and higher Up to 3 axles 8 21 43 427
4 axles or more 11 36 71 711
3 TAXES ON MOTORING
3.1 FUEL TAXES (EXCISE)
Petrol €509.00
Diesel €414.00

149
18
ACEA TAX GUIDE 2021
Lithuania
Chapter prepared by
Vitoldas Milius
[email protected]
LAA
Lithuanian Autoentrepreneurs’ Association
Zadeikos Street 1b
LT — 06319 Vilnius
T. +370 5 23 01 224
www.laa.lt
LITHUANIA
VAT
VAT
The acquisition of vehicles is subject to VAT at the rate of 21%.
The acquisition of vehicles is subject to VAT at the rate of 21%.

REGISTRATION FEES
REGISTRATION
1.2.1 Costs for vehicleFEES
registration procedure
Registration fee
1.2.1 Costs for vehicle registration procedure Vehicle identity Number plates
(€) check1 (€) (€)
New cars, never registered before (M, N) 14.48
Registration fee 15.35
Vehicle identity 15.06
Number plates
All other vehicles (M, N) (€)
10.14-12.45 check
15.35 (€)
1 (€)
15.06
New cars, never registered before (M, N) 14.48 15.35 15.06
Motorcycles (L) 8.98 11.58 7.53
All other vehicles (M, N) 10.14-12.45 15.35 15.06
Trailers (O) 2.32-5.50 3.77-6.08 8.11
Motorcycles (L) 8.98 11.58 7.53
Other registration types (diplomatic, 10.14-12.45 15.35 19.40
Trailers
historic, (O)
temporary) 2.32-5.50 3.77-6.08 8.11
Other registration types (diplomatic, 10.14-12.45 15.35 19.40
historic, temporary)
1.2.2 Roadworthiness test fee (in €)
Motorcycles
1.2.2 (L1 and L3) test fee (in €)
Roadworthiness 5.21
Motorcycles (L2, L4, L5, L6 and L7) 6.37
Motorcycles (L1 and L3) 5.21
Passenger vehicles (M1) petrol 14.48
Motorcycles (L2, L4, L5, L6 and L7) 6.37
Passenger vehicles (M1) diesel 18.20
Passenger vehicles (M1) petrol 14.48
Passenger vehicles (M1) LPG 23.40
Passenger vehicles (M1) diesel 18.20
Minibuses (M2) 19.69
Passenger vehicles (M1) LPG 23.40
Buses and trolleybuses (M3) 28.09
Minibuses (M2)
Joint vehicles (M3) 19.69
35.62
Trucks (N1)trolleybuses (M3)
Buses and 19.69
28.09
Joint
Trucksvehicles
(N2) (M3) 35.62
24.62
Trucks (N1) 19.69
Trucks (N3) 29.83
Trucks (N2) 24.62
Passenger vehicle trailers (O1) 5.21
Trucks (N3) 29.83
Truck trailers (semi-trailers) (O2) 9.85
Passenger vehicle trailers (O1) 5.21
REGISTRATION TAXES
REGISTRATION
No registration taxes apply.
TAXES
No registration taxes apply.
1 Vehicle identity check is required for all vehicles on first registration in Lithuania.
1 Vehicle identity check is required for all vehicles on first registration in Lithuania.

151
LITHUANIA
PASSENGER CARS
No ownership taxes apply.
COMMERCIAL VEHICLES
An ownership tax is payable for heavy-duty vehicles.
The annual rates (in €/year) are as follows:
Maximum authorised weight or gross laden Air suspension or equivalent Other type of
weight (t) suspension suspension
Trucks (N2 and N3), truck trailers (O4)
 12 and < 13 86 127
 13 and < 14 92 133
 14 and < 15 98 139
 15 and < 16 127 286
 16 and < 17 133 292
 17 and < 18 139 298
 18 and < 19 144 304
 19 and < 20 150 309
 20 and < 21 156 315
 21 and < 22 162 321
 22 and < 23 167 327
 23 and < 24 237 376
 24 and < 25 243 382
 25 and < 26 249 388
 26 and < 27 254 393
 27 and < 28 260 399
 28 and < 29 266 405
 29 and < 30 376 558
 30 and < 31 382 564
 31 and < 32 388 570
 32 and < 33 393 576
 33 and < 34 535 735
 34 and < 35 541 741
 35 and < 36 547 747
 36 and < 37 553 753
 37 and < 38 558 758
 38 and < 39 564 764
 39 and < 40 570 770
Road train (N3 and O4) 3 + 2 or 3 axles for 20, 30, 40 or 45ft ISO containers
 40 and < 41 654 967
 41 and < 42 666 984
 42 and < 43 680 1,013
 43 and < 44 695 1,042

152
LITHUANIA
3 TAXES ON MOTORING
FUEL TAXES (EXCISE)

Diesel €0.347/l
Petrol (unleaded) €0.434/l
Petrol (leaded) €0.579/l
Price of fuel in 2017
Liquefied petroleum gas €0.47-0.55/l

Diesel €0.93-1.00/l
Petrol 95 (unleaded) €1.04-1.12/l
Petrol 98 (unleaded) €1.04-1.13/l
All rates are inclusive of VAT at 21%.
ROAD USER TAX

A tax is levied for the use of commercial vehicles on highways and national roads (A1-A18).
The rates (in €) are as follows:
Vehicle type Daily Weekly Monthly Annually

(1 day) (7 days) (30 days)
Euro 4 and less Euro 0, 1, 2
polluting and 3
Buses M2 6 14 28 304
M3 11 26 52 552
More than 22 seats 11 37 75 753
Trucks N1 6 14 28 304
N2 11 26/37 52/75 550 753
N3 11 37/52 75/107 753 1,071
N1 and N3 for agricultural 6 14 28 304
purposes
Special- Vehicles designed for special 6 14 28 347
purpose purposes with special
vehicles equipment (M2 and M3, N1-N3)

153
19
ACEA TAX GUIDE 2021
Luxembourg
Chapter prepared by
Guido Savi
FEBIAC Luxembourg
[email protected]
Nadine Atanassoff
FEBIAC Belgium
[email protected]
FEBIAC
Belgian Federation of Automobile
and Motorcycle Industries
Boulevard de la Woluwe 46, Box 6
BE — 1200 Bruxelles
T. +32 2 778 64 00
F. +32 2 762 81 71
www.febiac.be
LUXEMBOURG
1.1 VAT
New vehicle
Private cars and commercial vehicles: 17%.
Second-hand vehicle
Vehicle purchased from a person not registered for VAT: no VAT.
Vehicle purchased from a person registered for VAT: 17% on:
• the gross profit margin if the vehicle was acquired by the taxable person (eg the dealer) from a
person not registered for VAT; or
• the invoiced amount if the vehicle was purchased from another person registered for VAT.
1.2 VAT EXEMPTIONS

The VAT paid on the purchase of a private car or commercial vehicle by a taxable person is wholly
deductible, provided that the motor vehicle is deployed in an activity giving rise to the deduction of input
VAT. This deduction is applicable to both new and second-hand vehicles.

Revenue stamps amounting to €50, supplemented by:
• €24 in case of transfer of an existing registration number to a new vehicle; or
• €50 in case of a personalised registration number allocated for the first time.
Number plates are issued by a private company (Grün Signalisation) and cost about €15 (VAT inclusive)
per plate.
1.4 INCENTIVES ON ZERO EMISSION VEHICLES

Tax allowance Amount (€)
Battery electric vehicles (BEV) 5,000
Electric or fuel cell vehicles (hydrogen)
Private persons, legal persons under private law
Category M1, N1
Plug-in hybrid electric vehicles (PHEV) < 50g CO2/km 2,500
Private persons
Category M1
Bikes and pedelec25 25% of the price without VAT
Power < 0.25kW up to max €300
Private persons ≥ 18 years old
Tax credit for companies %
Zero emission or fuel cell vehicles (hydrogen)
Category M1
Maximum €50,000 by vehicle
For investments < €150,000 8
For investments > €150,000 2
Quadricycle, motorcycle, light motorcycle (125cc), mopeds, 25% of the price without VAT
electric (scooters and pedelec45) 100% electric up to max €500
Professional use of an electric vehicle not purchased privately does not invalidate this incentive. Further
information on: www.clever-fueren.lu.

155
LUXEMBOURG
2.1 BASIS OF ASSESSMENT

Private cars CO2 or cylinder capacity
Buses and coaches Category (M2 or M3)
Commercial vehicles See following pages
2.2 RATES
2.2.1 Private cars (M1 category) registered after 1 January 2001
This includes vehicles powered by an electric motor or by a fuel cell and hybrid vehicles combining a
piston engine with an electric motor or a fuel cell. Vehicles are taxed according to their fuel system
(petrol or diesel):
• Minimum annual tax: €30
• Annual tax is calculated based on CO2 emissions; for cars registered for the first time in the EEA
(European Economic Area) as from 1 January 2021, the WLTP CO2 emissions value is taken into
account.
• Tax = a  b  c
a = CO2 emissions in g/km
b = 0.9 for diesel and 0.6 for other fuels
c = exponential factor: CO2 < 90g/km = 0.5, increased by 0.1 for each additional 10g/km
CO2 emissions (g/km) Exponential factor CO2 emissions (g/km) Exponential factor
1–90 0.5 291–300 2.6
91–100 0.6 301–310 2.7
101–110 0.7 311–320 2.8
111–120 0.8 321–330 2.9
121–130 0.9 331–340 3.0
131–140 1.0 341–350 3.1
141–150 1.1 351–360 3.2
151–160 1.2 361–370 3.3
161–170 1.3 371–380 3.4
171–180 1.4 381–390 3.5
181–190 1.5 391–400 3.6
191–200 1.6 401–410 3.7
201–210 1.7 411–420 3.8
211–220 1.8 421–430 3.9
221–230 1.9 431–440 4.0
231–240 2.0 441–450 4.1
241–250 2.1 451–460 4.2
251–260 2.2 461–470 4.3
261–270 2.3 471–480 4.4
271–280 2.4 481–490 4.5
281–290 2.5 491–500 4.6

156
LUXEMBOURG
Example:
• Diesel car with CO2 emissions of 145g/km  145  0.9  1.1 = €143.55 rounded to €143
• Petrol car with CO2 emissions of 225g/km  225  0.6  1.9 = €256.50 rounded to €256
2.2.2 Private cars (M1 category) registered before 1 January 2001 with no CO2 value available
Rate multiplied by 100cc:
Engine capacity (cc) Diesel (€) Other fuel (€)
1–1,600 6.00 6.00
1,601–2,000 7.00 7.00
2,001–3,000 10.50 9.50
3,001–4,000 13.50 11.50
≥ 4,000 15.00 12.50
2.2.3 Buses and coaches (M2, M3 categories)

From 1 November 2007:
Category Yearly tax (€) 6-month tax (€)
M2 150.00 80.00
M3 250.00 130.00
2.2.4 Vans, lorries and road tractors

Vans, lorries and road tractors with a maximum vehicle weight (MVW) of less than 12t:
Empty mass (t) Yearly tax (€) 6-month tax (€) Empty mass Yearly tax (€) 6-month tax (€)
1–600 50.00 − 2,601–2,800 237.00 123.00
601–800 67.00 − 2,801–3,000 254.00 132.00
801–1,000 84.00 47.00 3,001–3,200 271.00 140.00
1,001–1,200 101.00 55.00 3,201–3,400 288.00 149.00
1,201–1,400 118.00 64.00 3,401–3,600 305.00 157.00
1,401–1,600 135.00 72.00 3,601–3,800 322.00 166.00
1,601–1,800 152.00 81.00 3,801–4,000 339.00 174.00
1,801–2,000 169.00 89.00 4,001–4,200 356.00 183.00
2,001–2,200 186.00 98.00 4,201–4,400 373.00 191.00
2,201–2,400 203.00 106.00 4,401-4,600 390.00 200.00
2,401–2,600 220.00 115.00 4,601–12,000 425.00 217.00
Lorries and road tractors with an MVW of 12t or more:

Number of axles = 2
Pneumatic suspension or equivalent Other type of suspension
MVW (kg)
Yearly tax (€) 6-month tax (€) Yearly tax (€) 6-month tax (€)
12,000–15,000 255.00 132.00 255.00 132.00
15,001–19,500 255.00 132.00 274.00 142.00
19,501–20,500 255.00 132.00 280.00 145.00
20,501–21,500 255.00 132.00 305.00 157.00
21,501–22,500 255.00 132.00 330.00 170.00
> 22,500 255.00 132.00 330.00 170.00

157
LUXEMBOURG
Number of axles = 3
MVW (kg)
12,000–19,500 255.00 132.00 255.00 132.00
19,501–20,500 255.00 132.00 280.00 145.00
20,501–21,500 255.00 132.00 305.00 157.00
21,501–22,500 255.00 132.00 330.00 170.00
22,501–23,500 255.00 132.00 355.00 182.00
> 23,500 255.00 132.00 380.00 195.00
Number of axles = 4
MVW (kg)
12,000–19,500 255.00 132.00 255.00 132.00
19,501–20,500 255.00 132.00 280.00 145.00
20,501–21,500 255.00 132.00 305.00 157.00
21,501–22,500 255.00 132.00 330.00 170.00
22,501–23,500 255.00 132.00 355.00 182.00
23,501–24,500 255.00 132.00 380.00 195.00
24,501–25,500 255.00 132.00 405.00 207.00
25,501–26,500 255.00 132.00 430.00 220.00
26,501–27,500 255.00 132.00 455.00 232.00
27,501–28,500 255.00 132.00 480.00 245.00
> 28,500 365.00 187.00 537.00 273.00
2.2.5 Trailers
Trailers with an MVW of less than 12t:
Maximum mass (kg) Yearly tax (€) 6-month tax (€)
1–750 0.00 −
751–1,000 25.00 −
1,001–1,500 40.00 −
1,501–2,000 55.00 −
2,001–2,500 70.00 −
2,501–3,000 85.00 47.00
3,001–3,500 100.00 55.00
3,501–4,000 115.00 62.00
4,001–4,500 130.00 70.00
4,501–5,000 145.00 77.00
5,001–11,999 150.00 80.00

158
LUXEMBOURG
Trailers with an MVW of 12t or more, except semi-trailers:

Number of axles = 2 or less
MVW (kg)
12,000–13,500 370.00 190.00 565.00 287.00
13,501–15,000 370.00 190.00 580.00 295.00
15,001–16,500 370.00 190.00 595.00 302.00
16,501–18,000 370.00 190.00 610.00 310.00
18,001–19,500 370.00 190.00 625.00 317.00
19,501–20,500 370.00 190.00 640.00 325.00
> 20,500 370.00 190.00 650.00 330.00
Number of axles = 3 or more
MVW (kg)
12,000–28,500 255.00 132.00 425.00 217.00
> 28,500 510.00 260.00 700.00 355.00
2.2.6 Tractors and semi-trailers
Tractors:
Number of axles = 2
MVW (kg)
12,000–35,500 255.00 132.00 255.00 132.00
35,501–37,500 255.00 132.00 310.00 160.00
37,501–39,500 255.00 132.00 420.00 215.00
> 39,500 310.00 160.00 420.00 215.00
MVW (kg)
12,000–39,500 255.00 132.00 255.00 132.00
> 39,500 380.00 195.00 485.00 247.00

159
LUXEMBOURG
Semi-trailers:
Number of axles = 2 or less
MVW (kg)
12,000–17,500 50.00 – 50.00 –
17,501–18,500 63.00 – 75.00 –
18,501–19,500 76.00 43.00 100.00 55.00
19,501–20,500 89.00 49.00 125.00 67.00
20,501–21,500 102.00 55.00 150.00 80.00
21,501–22,500 115.00 62.00 175.00 92.00
22,501–23,500 128.00 69.00 200.00 105.00
23,501–24,500 141.00 75.00 225.00 117.00
24,501–25,500 154.00 82.00 250.00 130.00
25,501–26,500 167.00 88.00 275.00 142.00
26,501–27,500 180.00 95.00 300.00 155.00
27,501–28,500 193.00 101.00 325.00 167.00
28,501–29,500 206.00 108.00 350.00 180.00
29,501–30,500 219.00 114.00 375.00 192.00
30,501–31,500 232.00 121.00 400.00 205.00
31,501–32,500 245.00 127.00 425.00 217.00
> 32,500 250.00 130.00 455.00 232.00
MVW (kg)
12,000–17,500 50.00 – 50.00 –
17,501–18,500 60.00 – 65.00 –
18,501–19,500 70.00 – 80.00 45.00
19,501–20,500 80.00 45.00 95.00 52.00
20,501–21,500 90.00 50.00 110.00 60.00
21,501–22,500 100.00 55.00 125.00 67.00
22,501–23,500 110.00 60.00 140.00 75.00
23,501–24,500 120.00 65.00 155.00 82.00
24,501–25,500 130.00 70.00 170.00 90.00
25,501–26,500 140.00 75.00 185.00 97.00
26,501–27,500 150.00 80.00 200.00 105.00
27,501–28,500 160.00 85.00 215.00 112.00
28,501–29,500 170.00 90.00 230.00 120.00
29,501–30,500 180.00 95.00 245.00 127.00
30,501–31,500 190.00 100.00 260.00 135.00
31,501–32,500 200.00 105.00 275.00 142.00
> 32,500 210.00 110.00 285.00 147.00

160
LUXEMBOURG
3 TAXES ON MOTORING
3.1 FUEL TAXES MAXIMUM

Price on 11 March 2021:
Super unleaded Super unleaded Diesel* (€/l) LPG (€/l)
95* (€/l) 98* (€/l)
Cost of the product 0.619 0.677 0.642 0.470
(incl. margins and costs)
Excises + other taxes (1) 0.472 0.472 0.355 0.102
Price without VAT 1.092 1.149 0.997 0.572
VAT (%) 17.00 17.00 17.00 8.00
VAT amount (2) 0.186 0.195 0.170 0.097
(1) + (2) 0.658 0.667 0.525 0.199
% of the price at the pump 51.50 53.60 44.90 32.20
Price at the pump 1.277 1.244 1.167 0.618
* Maximum 10ppm sulphur
3.2 INSURANCE TAXES

Subscription to an insurance policy attracts a 4% insurance tax (the premiums paid form the basis of
the taxation).
3.3 EUROVIGNETTE
In conformity with Directive 93/89/EEC of 9 February 1994, a road toll called the Eurovignette is levied
in Luxembourg on vehicles for transport of goods with an MPW exceeding 12t (see
http://www.do.etat.lu/vehaut/eurovignette.htm).
3.4 COMPANY CARS

3.4.1 Deductibility of company car expenses in the framework of corporate income tax
All car expenses are fully deductible (including fuel expenses).
VAT deductibility
VAT on all expenses related to professional car use is fully deductible (including VAT on fuel).
3.4.2 Benefit in kind (BIK) of private use of a company car
Provision of a company car that can also be used for private purposes is considered a benefit in kind
(BIK) and results in the employee being liable for additional income tax. Two methods are used to
determine this BIK, as set out below.
The lump-sum method
The BIK per month is a percentage of the vehicle’s value when new (options and VAT included, minus
discounts) in function of fuel type and CO2 emissions. The same method applies for used cars. For
cars registered for the first time in the EEA (European Economic Area) as from 1 January 2021, the
WLTP CO2 emissions value is taken into account.
CO2g/km Petrol (+ hybrid, CNG) (%) Diesel (+ hybrid) 100% electric & Bike & electric bike
(%) hydrogen (%) (%)
0 – – 0.5 0.5
1–50 0.8 1.0 – –
51–110 1.0 1.2 – –
111–150 1.3 1.5 – –
> 150 1.7 1.8 – –

161
LUXEMBOURG
Example:
Diesel car, 115g/km, purchasing price: €29,000
→ monthly taxable benefit in kind: 1.5%  €29,000 = €435
This monthly benefit is subject to tax on wages and social security contributions (as normal wages).
The logbook method
The employee keeps a logbook and records the mileage travelled for professional purposes. The
mileage driven for private purposes will therefore be equal to the difference between the total mileage
and the professional mileage. The taxable BIK is equal to the cost per kilometre (to be determined by
the employer) multiplied by the kilometres of private use. The BIK is calculated monthly. This monthly
BIK is subject to tax on wages and social security contributions (as normal wages).
3.4.3 Employee participation in vehicle costs
Employee flat participation in maintenance, leasing or renting costs
If an employer provides a company car to an employee for a fixed flat fee (deducted from the net
remuneration of the employee) to cover maintenance costs/cost of leasing or renting, this contribution
is deducted from the amount of the BIK.
The proportion of the leasing cost that is VAT deductible is limited to 20% of the cost borne by the
employer. The Tax Administration considers that a contribution to the cost of greater than 20% is
motivated by personal considerations.
Example:
• Diesel car, 115g/km, purchase price of the vehicle in new condition (including VAT and options,
net of the discount granted by the seller): €29,000
• Monthly BIK: 1.5%  €29,000 = €435
• Monthly rent paid by the employer: €600
• Fixed employee contribution to the monthly cost of leasing (deducted from the net
remuneration of the employee): €150
• Deductible participation to the cost of leasing/renting paid by the employee is limited to
20%  (€600 - €150) = €90
• The monthly taxable BIK is €435 - €90 = €345
Employee variable participation in fuel, maintenance and repair costs
Not deductible from the amount of the BIK.
3.4.4 Employee participation in the purchase price
The employee's contribution to the vehicle purchase price does not affect the assessment of the BIK.
This contribution limited to 20% of the purchase price paid by the employer may be deducted from the
amount of the BIK through depreciation. The Tax Administration considers that a contribution of greater
than 20% is motivated by personal considerations.
Example:
• Diesel car, 115g/km, price of new vehicle purchased on 1 October 2020 (including VAT and
options, net of the discount granted by the seller): €29,000 including the employee’s
contribution of €3,480.
• Monthly BIK: 1.5% x €29,000 = €435
• Depreciation of employee contribution spread over eight months: €3,480/€435
• For a period of eight months (from October 2020 to May 2021), there is no taxable BIK. From 1
June 2019, the BIK of €435 is subject to tax on wages.
3.4.5 Redemption of a company car by the employee
The acquisition by the employee of a company car (owned/leased/rented by the employer with a
purchase option) at a lower price than market price constitutes a taxable BIK and is subject to social
security contributions.

162
LUXEMBOURG
The tax basis of the BIK is equal to the difference between the vehicle’s market value at redemption
and the price paid by the employee.
The evaluation of the benefit involves the problem of determining the market value of the vehicle.
Because of the various factors that may affect this assessment, and for the sake of fairness, the Tax
Administration recommends a simplified method of assessment.
Example:
• Diesel car, 115g/km, purchase price of the new vehicle: €29,000 (options and VAT included,
minus discounts)
• Price paid by the employee: €2,900 (10%)
• Vehicle age: 36 months
• Vehicle market value: €13,050
• Tax basis: €13,050 - €2,900 = €10,150 (tax and social security contribution)

163
20
ACEA TAX GUIDE 2021
Malta
Chapter prepared by
William Shaw
[email protected]
ACIM
Association of Car Importers Malta
PO Box 50
MT — San Gwann
T. +356 21 38 57 74
F. +356 21 22 33 06
acim.org.mt
M A LTA

Registration tax and congestion tax are imposed upon the buyer upon the purchase of a new M1 vehicle.
Registration tax will be as follows: the total amount of registration tax will be the sum of a percentage
value (depending on CO2 emissions) multiplied by the CO2 emissions value (in g/km) multiplied by the
registration value (RV) of the vehicle, plus the indicated percentage value multiplied by the length (in
mm) multiplied by the registration value (RV) of the vehicle.
Therefore, the formula that will be used to calculate registration tax is as follows:
Total registration tax = (X%  CO2  RV) + (Y%  length  RV)
Where:
X% is the percentage taken from the table on CO2 emissions
Y% is the percentage taken from the table on length
Rates will vary depending on whether the vehicle has a diesel or a petrol engine. However, where an M1
motor vehicle powered by a diesel engine has a particulate matter level not exceeding 0.005g/km (Euro
5 level), the Malta Transport Authority will apply the rates applicable to vehicles powered by a petrol
engine.
X values for registration tax
CO2 emissions (g/km) Petrol-engine
0─100 0.13% × CO2 × RV
101─130 0.15% × CO2 × RV
131─140 0.17% × CO2 × RV
141─150 0.19% × CO2 × RV
151─180 0.21% × CO2 × RV
181─220 0.23% × CO2 × RV
221─250 0.25% × CO2 × RV
 251 0.27% × CO2 × RV
Example
The registration value (RV), the CO2 emissions level, and the overall length for a standard petrol-engine
private Class 1 vehicle are the following:
RV value: €5,000
CO2 emissions level: 110g/km
Length: 40,000mm
The total registration tax due on the vehicle is calculated as follows:

Total registration tax = (X% × 110 × 5,000) + (Y% × 4,000 × 5,000)
1.2 VALUE ADDED TAX

VAT is charged at a flat rate of 18% on the sale price of the vehicle, regardless of engine capacity.

165
M A LTA
2.1 ANNUAL CIRCULATION TAX

An annual circulation tax is paid upon the actual use of the vehicle on the Maltese roads.
The tax is based on CO2 emissions and the age of the vehicle:
Emissions (g/km) Tax: first 5 years (€)
0─100 100
101─130 110
131─140 120
141─150 140
151─180 180
After the first five years in circulation, the annual circulation tax increases for all classes of vehicles.

166
21
ACEA TAX GUIDE 2021
Netherlands
Chapter prepared by
Wout Benning
[email protected]
RAI Vereniging
Bicycle and Automobile Association
of the Netherlands
Postbus 74 800
NL — 1070 DM Amsterdam
T. +31 20 504 49 49
F. +31 20 646 38 57
www.raivereniging.nl
NETHERLANDS
1.1 VAT
The rate of VAT on motor vehicles is 21%. The basis for calculating VAT is the price of the vehicle
exclusive of all taxes.

A registration tax, the Belasting van Personenauto’s en Motorrijwielen (BPM), is levied on all new
passenger cars and motorcycles and also (in accordance with a depreciation scheme) on used cars
and motorcycles when they are registered for the first time in the Netherlands.
The BPM is calculated on the CO2 emissions of the vehicle, based on its fuel efficiency.
The BPM is calculated using the following procedure: for each gram of CO2 per kilometre, a certain
amount of tax is charged. More fuel-inefficient vehicles pay more tax per gram of CO2 per kilometre.
This is done by increasing the tax per gram for emissions that reach certain thresholds. The thresholds
and tariffs are the same for petrol and diesel cars. The table below shows the total amount of tax per
gram of CO2 per kilometre in the ranges stated.
For petrol and diesel cars:
Thresholds for CO2 emissions (g/km) Tax per g CO2/km (€)
From Up to and including
0 0 Exempt
1 86 1.00
87 111 60.00
112 155 132.00
156 172 216.00
173 – 432.00
As of 1 January 2021, a fixed BPM surcharge of €372 is applicable for all new passenger cars sold that
have CO2 emissions of 1g/km or more.
Furthermore, a diesel surcharge is applicable. The diesel surcharge applies to vehicles with CO2
emissions of more than 77g/km. The diesel surcharge per gram of CO2 above 77g/km is €83.59 in
2021.
The CO2 emissions component is calculated by adding together the tax amounts for the individual
thresholds up to the amount of CO2 that is stated.
Incentives:
Diesel cars with Euro 6 engines no longer benefit from a rebate on the BPM.
Plug-in hybrid electric vehicles (PHEVs)
As of 1 January 2017, a special BPM rate is applicable for all new PHEVs sold. For 2021 the following
rates apply:
Thresholds for CO2 emissions (g/km) Tax per g CO2/km (€)
From Up to and including
0 0 Exempt
1 34 24.00
35 60 84.00
61 – 202.00
The fixed BPM surcharge of €372 is not applicable for PHEVs.

168
NETHERLANDS
Amendment of the moment when BPM is determined
As from 1 January 2022 the moment when the payable BPM is determined for a new passenger car,
motorcycle or delivery van will change. Up until now, the amount of BPM to be paid for a new vehicle
was determined upon ascription in the licence-plate register. As from 1 January 2022, this changes to
the moment of entry in the number-plate register (so-called “first registration”).
Now that the moment of determining the final CO2 value (as basis for BPM) has been shifted to the
moment of number-plate request, any possible alterations that are made to the vehicle after the number
plate has been requested no longer have any impact on the payable BPM. The CO2 value that is
indicated on a vehicle’s CVO determines the BPM levy. The moment of payment for BPM also shifts
from the moment of ascription to the moment when the number plate is requested.
Abolishment of transitional period
The 2021 Tax Plan bill includes the provision that the transitional rule of two months in the event of
changes in BPM rates as referred to in Article 16a of the law on BPM lapses. The abolishment of Article
16a will coincide with the amendment of the moment when BPM is determined.
BPM on cars running on alternative fuels
For cars running on LPG, CNG and E85, the same CO2 fuel efficiency limits shall apply as for petrol
engines. For the purposes of calculating CO2 emissions, the emission values of LPG, CNG and
biomethane can be used in the case of LPG, CNG and biomethane engines.
If the CO2 emission level of a passenger car is not specified by way of ministerial regulation, then this
will be set at 550g of CO2 per kilometre for a petrol engine and 395g of CO2 per kilometre for a diesel
engine.

VAT is deductible if the purchase is made by an industrial or commercial enterprise.
This allowance is applicable both to private cars and commercial vehicles (new and second-hand).

The depreciation of cars is not governed by any strict set of regulations. In general, cars are written
down over a period of three years, at the end of which a residual value remains.

The registration charge is presently as follows:
All vehicles €53.40
Trailers and semi-trailers €53.40

169
NETHERLANDS
2.1 BASIS OF ASSESSMENT

Private cars Gross Vehicle Weight, province, fuel, CO2 emissions
Buses and coaches Gross Vehicle Weight
2.2 ROAD TAX

As of 1 January 2016, the rates of road tax (MRB) are established on the basis of:
• gross vehicle weight;
• type of fuel used;
• region (province);
• CO2 emissions.
Passenger vehicles that do not emit any CO2 will also be exempted from vehicle tax in 2021. This
exemption will remain in force until 2024. In 2025, electric cars will pay 25% of the vehicle tax and from
2026, 100%. Semi-electric vehicles are significantly heavier because of the battery pack and the electric
motor. Therefore, these vehicles receive a 50% discount in the MRB until 2024. In 2025, 75% will be paid
for semi-electric cars, and after that, 100% of the rate. Different MRB tariffs still apply to different types
of fuel. The diesel surcharge remains in effect.
As from 1 January 2020, a particle surcharge for polluting diesel vehicles is included in vehicle tax.
Owners of older diesel cars pay a surcharge of 15% on vehicle tax. The surcharge, also known as “rust
tax”, applies in the following situations:
• Cars and delivery vans that emit particles of more than 5mg per kilometre (> 0.005 g/km).
• Diesel cars that emit particles of more than 10mg per kWh (> 0.01 g/kWh).
• Diesel cars of which the rust filter has been removed.
• The date of first entry is before 1 September 2009 and the particle emission level is not
specified in the RDW number plate register.
• For delivery vans, a particle surcharge must be paid as from 12 years after the date of first
entry.
There is no longer a list of rates available for passenger cars.
2.2.2 Vans
There is no list of rates available for vans either.
2.2.3 Lorries
Road tax for trucks is based on:
• If the truck is equipped with a coupling device
• The gross vehicle weight of the vehicle
• Type of suspension of the vehicle
• Number of axles
• Euro norm of the vehicle
• If the truck is equipped with a full-electric of hydrogen drivetrain
The rates in the tables are for vehicles compliant Euro III and over; for the following classes a surcharge
applies:
• 90% for Euro 0
• 75% for Euro I
• 60% for Euro II

170
NETHERLANDS
Road tax for a three-month period, Euro III and over, without coupling device:
GVW (kg) Without air suspension (€) With air suspension (€)
2 axles 3 axles 4 axles or more 2 axles 3 axles 4 axles or more
3,501─14,999 80.00 80.00 80.00 80.00 78.00 80.00
15,000─22,999 97.00 80.00 80.00 80.00 78.00 80.00
23,000─24,999 120.00 120.00 80.00 80.00 78.00 80.00
25,000─26,999 120.00 120.00 80.00 80.00 78.00 80.00
27,000─28,999 127.00 127.00 127.00 80.00 78.00 80.00
29,000─30,999 187.00 187.00 187.00 127.00 127.00 127.00
31,000─32,999 187.00 187.00 187.00 127.00 127.00 127.00
33,000─35,999 187.00 187.00 187.00 127.00 127.00 127.00
36,000─37,999 187.00 187.00 187.00 127.00 127.00 127.00
38,000─39,999 187.00 187.00 187.00 127.00 127.00 127.00
≥ 40,000 187.00 187.00 187.00 127.00 127.00 127.00
Road tax for a three-month period, Euro III and over, with coupling device:
GVW (kg) Without air suspension (€) With air suspension (€)
2 axles 3 axles or more 2 axles 3 axles or more
3,501─14,999 80.00 80.00 80.00 80.00
15,000─22,999 80.00 80.00 80.00 80.00
23,000─24,999 80.00 80.00 80.00 80.00
25,000─26,999 108.00 80.00 80.00 80.00
27,000─28,999 108.00 80.00 80.00 80.00
29,000─30,999 117.00 114.00 80.00 80.00
31,000─32,999 162.00 114.00 117.00 80.00
33,000─35,999 244.00 158.00 162.00 114.00
36,000─37,999 244.00 158.00 162.00 114.00
38,000─39,999 244.00 217.00 179.00 158.00
≥ 40,000 321.00 321.00 244.00 217.00
In addition to the road tax for trucks, a tax for heavy goods vehicles (Belasting zware motorrijtuigen –
BZM) better known as Eurovignet, is also due. This tax applies only to vehicles used on the motorway
and if:
• the vehicle is only used for the transport of goods;
• the GVW of the vehicles (or combination) is of 12t or more.
12 months (€) 1 month (€) 1 week (€)
Up to 3 axles 4 axles or more Up to 3 axles 4 axles or more Up to 3 axles 4 axles or more
Euro 0 1,407.00 2,359.00 140.00 235.00 37.00 62.00
Euro I 1,223.00 2,042.00 122.00 204.00 32.00 54.00
Euro II 1,065.00 1,776.00 106.00 177.00 28.00 47.00
Euro III 926.00 1,543.00 92.00 154.00 24.00 41.00
Euro IV 842.00 1,404.00 84.00 140.00 22.00 37.00
Euro V 796.00 1,327.00 79.00 132.00 21.00 35.00
Euro VI 750.00 1,250.00 75.00 125.00 20.00 33.00
The tariff for 1 day is €12 for all vehicle classes.
2.2.4 Buses and coaches

There is no list of rates available for buses and coaches.

171
NETHERLANDS
3 TAXES ON MOTORING
3.1 FUEL TAXES
Price of fuels on 1 June 2020 (€/l)

Unleaded Euro 95 Diesel
Tax-exclusive price 0.56 0.56
Total tax (excl VAT) 0.80 0.50
Price excl VAT 1.36 1.06

VAT at 21% 0.29 0.22

If the private use of the company car exceeds 500km a year, 22% of the vehicle’s catalogue value will
be considered part of the driver’s/user’s income. There is a discount on this standard 22% rate for fuel-
efficient cars: instead of 22%, an 12% car benefit charge is levied if the car emits no CO2 (zero-emission
vehicles). The discount rate of 12% only applies to vehicles of which the catalogue price does not
exceed €40,000. For an amount above €40,000, the regular 22% must be paid. This threshold does not
apply to hydrogen cars. If the private use of a company car is less than 500km a year, no car benefit is
charged.
The environmental threshold for taxable benefit in 2020
Rate at which benefit is taxable for petrol and diesel cars (%) CO2 emissions (g/km)
12 0
22 ≥1
Vehicles keep the tariff for a period that is the same as the standard lease period calculated from the
moment the vehicle is registered for the first time. The Ministry of Finance has set the standard lease
period at 60 months.
5.1 ORGANISATION OF THE INSPECTION

The annual inspection of private cars and light commercial vehicles (for petrol cars, starting in the
fourth year after registration, with subsequent inspections in the sixth and eighth years, and annually
after the eighth year; for diesel and LPG cars, after the third year) was introduced on
15 September 1985. Inspections are organised by:
• the administration;
• authorised private garages;
• the Royal Dutch Touring Club stations;
• other authorised workshops.
5.2 DURATION OF THE INSPECTION

Private vehicles and light commercial vehicles 45 minutes
Trucks 60─75 minutes

172
22
ACEA TAX GUIDE 2021
Poland
Chapter prepared by
Michal Wekiera
[email protected]
PZPM
Polish Automotive Industry Association
Motoryzacyjnego
Al. Niepodlegtosci 69
PL — 02-626 Warszawa
T. +48 22 322 71 98
F. +48 22 322 76 65
www.pzpm.org.pl
POLAND
1.1 VAT
Under the Act on the Goods and Services Tax passed on 11 March 2004, all new vehicles sold in the
country are subject to 23% VAT. In accordance with Article 2.10 of the legislation, a given vehicle meets
the definition of a new means of transport providing that its mileage does not exceed 6,000km or not
more than six months have elapsed from the date of its commissioning.
VAT is calculated as follows:
VAT = (V + T + E) × 23%
where:
V is the customs value of the vehicle or value stated in the invoice, if the vehicle was manufactured in
the EU;
T is the tax rate (only for vehicles imported from outside the EU; for EU imported vehicles the rate is 0);
and
E is the amount of excise tax.
The purchase of a second-hand vehicle by a private person is not subject to VAT.
1.2 EXCISE TAX

The Act on Excise Tax was passed on 6 December 2008 and entered into force on 1 March 2009.
Excise taxpayers are:
• entities selling passenger cars before their first registration;

• importers and intra-Community purchasers.
According to the new law, excise tax is a ‘one-phase tax’ and importers/intra-Community purchasers
will be taxed by excise in the situations covered by the new act. Those situations are:
• intra-Community purchase;
• import;
• selling of cars before their first registration.
Taxable basis
• The taxable basis of car sales is the amount due for the sale, exclusive of VAT and excise tax
(Article 104.1.1)
• The taxable basis for intra-Community car purchases is the amount the purchaser is obliged to
pay (Article 104.1.2)
• The taxable basis for imports is the customs value including the customs duty and other fees
and charges (Article 104.1.3)
New vehicles and second-hand vehicles
For new and second-hand vehicles, the rate of excise tax depends on the engine capacity.
The tax due is calculated using the calculation method:
Tax rate × vehicle value

174
POLAND
Electric vehicles 0.0%

Plug-in hybrid electric vehicles ≤ 2,000cc* 0.0%
Plug-in hybrid electric vehicles 2,000 < x ≥ 3,500cc 9.3%
Hybrid vehicles ≤ 2,000cc 1.5%
Hybrid vehicles 2,000 < x ≥ 3,500cc 9.3%
≤ 2,000cc 3.0%
> 2,000cc 18.6%
*Valid until end of 2022

1.3.1 VAT exemption
At the end of 2016, Poland obtained from the Council of Europe another derogation on VAT. The
implementation of this decision did not result in substantial changes to the VAT rules for vehicles
because it was a continuation of a previous derogation. Consequently, Article 86a of the Act on the
Goods and Services Tax remained the same and will remain in force at least until the end of 2021.
Article 86a.1 of the Act on the Goods and Services Tax states that ‘in case of the acquisition of motor
vehicles with a maximum authorised total mass not exceeding 3.5t, the amount of input tax shall be
50% of the amount stated in the invoice or the amount of tax due on intra-Community supply of goods,
or the amount of tax due on the supply of goods, for which the taxable person is their purchaser. The
same rule is used for amount paid for service, fuel and other amounts associated with vehicle
exploitation and use of the motor vehicle’.
This means that the whole input tax can be deducted in case of vehicles that exceed 3.5t.
The Act on the Goods and Services Tax stipulates certain limits to input tax deduction. These limits (§3
of Article 86a) do not apply when vehicles comply with special technical conditions or are used only for
entrepreneurial economic activities. In such cases, the taxpayer can deduct 100% of the input tax even
if the vehicle does not exceed 3.5t.
Vehicles that comply with special technical conditions are vehicles carrying at least 10 persons
including the driver.
Vehicles that are used only for economic activities of the entrepreneur are listed below (§4 of
Article 86a).
1. Vehicles that are not passenger cars, with one row of seats and with a durable wall or partition:
a) classified pursuant to the Law on Road Traffic in the subcategory multi-purpose vehicle (MPV)
or van;
b) with an open part designated for load transport
2. Vehicles that are not passenger cars, with one row of seats in which the driver’s cockpit and the car
body are divided
3. Special vehicles:
a) Electric generators
b) For drilling works
c) Excavators, excavator–bulldozer
d) Loaders
e) Lifts for maintenance and installation
f) Crane vehicles
g) Bank armoured vehicles
h) Funeral vehicles
4. Other vehicles with mileage records that confirm the use of the vehicle for business purposes only

175
POLAND
With respect to the above-mentioned vehicles, the taxpayer can deduct 100% of input tax.
Fulfilment of the above-mentioned special technical conditions for vehicles listed in points 1 and 2 is
verified by an additional technical examination carried out in regional stations for vehicle control, and
the registration certificate of the vehicle is appended with an appropriate note about the fulfilment of
these criteria.
Fulfilment of the above-mentioned special technical conditions for vehicles listed in point 3 is verified
on the basis of type-approval documents.
Deduction of 100% VAT is also allowed if the resale or leasing of vehicles constitutes the object of the
taxable person’s business.
1.3.2 Reduction or refund of tax on the purchase of motor fuel, fuel oil and liquefied petroleum gas
(LPG)
The new law states that 50% of the input tax paid on fuels, fuel oils and LPG for cars is deductible.
In the case of other vehicles that fulfil special technical conditions, or are used only for economic
activities, 100% of the input tax paid on fuels, fuel oils and LPG is deductible.
1.3.3 Exclusion of private use of a company car
During the period of derogation, vehicles with mileage records on which 100% input tax has been
deducted cannot be used for private purposes and there will be no legal duty to pay for the private use
of a company vehicle from which 50% input tax has been deducted.

The registration fee amounts to PLN 180.50 for cars (including buses and coaches) and PLN 121.50
for motorcycles.
An identification card is issued for each new or second-hand vehicle upon first registration. The fee for
this card amounts to PLN 75.
1.4.2 Other registration charges
In the event of a car purchase on which no VAT is paid, the buyer is obliged to pay a 2% tax based on
the actual vehicle value (not on the price in the purchase contract).
There are no typical ownership taxes in Poland. There is only a local tax for owners of commercial
vehicles with weight over 3.5t. The amount of tax paid depends on weight and number of axles. The
lowest tax is PLN 24.89 and the highest is PLN 3,364.56.
3 TAXES ON MOTORING
3.1 FUEL TAXES

• Excise tax for petrol and petrol with biocomponents: PLN 1,514/1,000l
• Excise tax for diesel and diesel with biocomponents: PLN 1,145/1,000l
• Excise tax for biocomponents that are self-contained fuel: PLN 1,145/1,000l

176
POLAND
• Fuel fee for petrol without biocomponents for the construction of motorways and roads in
Poland: PLN 155.49/1,000l
• Fuel fee for diesel without biocomponents for the construction of motorways and roads in
Poland: PLN 323.49/1,000l
• Emission fee for petrol for Low Emission Fund financing introduction of ZEV and LEV vehicles
and infrastructure of alternative fuels: PLN 80/1,000l
• Emission fee for diesel for Low Emission Fund financing introduction of ZEV and LEV vehicles
and infrastructure of alternative fuels: PLN 80/1,000l
VAT for both petrol and diesel amounts to 23%.
The tax value of the retail price of petrol amounts to approximately 54%.
The tax value of the retail price of diesel amounts to approximately 51%.
3.2 AVERAGE FUEL PRICES

Tax-inclusive prices at the beginning of 2021 (17 February) were as follows:
• Petrol: PLN 4.75/l (Pb95) and PLN 5.04/l (Pb98)

• Diesel PLN 4.74/l
• LPG: PLN 2.34/l

Motor vehicles are required to undergo a technical examination in control stations authorised by the
Road Transport Inspector first after three years of motoring, then again after two years of motoring,
and thereafter every year.

177
23
ACEA TAX GUIDE 2021
Portugal
Chapter prepared by
António Cavaco
[email protected]
ACAP
Automobile Association of Portugal
Avenida Torre de Belém 29
PT — 1400-342 Lisboa
T. +351 21 303 53 00
F. +351 21 302 14 74
www.acap.pt
PORTUGAL
1.1 CAR TAX (ISV)

Car tax (Imposto Sobre Veículos – ISV) is only applied to vehicles with a gross weight of up to 3.5t. ISV
is calculated as follows:
Table A
1. Cylinder capacity component
Cylinder capacity (cc) ISV (€)

≤ 1,000 ISV = 0.99 × cc - 769.80
1,001–1,250 ISV = 1.07 × cc - 711.31
> 1,250 ISV = 5.08 × cc - 5,616.80
2. Environmental component
All CO2 emissions are WLTP.
Petrol cars
CO2 (g/km) ISV (€)

≤ 110 ISV = 0.40 × CO2 - 39.00
111–115 ISV = 1.00 × CO2 - 105.00
116–120 ISV = 1.25 × CO2 - 134.00
121–130 ISV = 4.78 × CO2 - 561.40
131–145 ISV = 5.79 × CO2 - 691.55
146–175 ISV = 37.66 × CO2 - 5,276.50
176–195 ISV = 46.58 × CO2 - 6,571.10
196–235 ISV = 175.00 × CO2 - 31,000.00
> 235 ISV = 212.00 × CO2 - 38,000.00
Diesel cars
CO2 (g/km) ISV (€)

≤ 110 ISV = 1.56 × CO2 - 10.43
111–120 ISV = 17.20 × CO2 - 1,728.32
121–140 ISV = 58.97 × CO2 - 6,673.96
141–150 ISV = 115.50 × CO2 - 14,580.00
151–160 ISV = 145.80 × CO2 - 19,200.00
161–170 ISV = 201.00 × CO2 - 26,500.00
171–190 ISV = 248.50 × CO2 - 33,536.42
> 190 ISV = 256.00 × CO2 - 34,700.00
100% of Table A: light passenger vehicles (LPVs) and dual-purpose passenger/cargo vehicles
weighing less than 2.5t with unique passenger/cargo box, and more than three seats.
60% of Table A: LPVs with hybrid engines (petrol/diesel plus electric energy/solar energy) and rental
LPVs with CO2 emissions less than 138g/km WLTP, or CO2 emissions less than 120g/km NEDC.

179
PORTUGAL
50% of Table A: LPVs for families with three or more children, with less than eight years old, with more
than five seats, with CO2 emissions less or equal to 150g/km NEDC or CO2 emissions less or equal
to 173g/km WLTP.
40% of Table A: dual-purpose passenger/cargo vehicles weighing more than 2.5t and less or equal to
3.5t and not four-wheel drive.
40% of Table A: LPVs fuelled exclusively by natural gas.
30% of Table A: LPVs (taxis) with CO2 emissions less than 184g/km WLTP or CO2 emissions less
than 160g/km NEDC.
25% of Table A: LPVs with plug-in hybrid engines (all-electric mode up to 50km or more and with
official CO2 emissions less than 50g/km.
0% of Table A (exempted): vehicles fuelled exclusively by electric energy or renewable energy.
In addition to the total ISV (cc + CO2 components), a tax of €500 is levied on diesel LPVs with
particulate matter (PM) emissions greater than or equal to 0.001g/km.
Table B
Cylinder capacity (cc) ISV (€)

≤ 1,250 ISV = 4.81 × cc - 3,020.78
> 1,250 ISV = 11.41 × cc - 11,005.76
100% of Table B: passenger car-derived vans with a cargo box with a height of less than 1.20m and
not more than three seats, or four-wheel drive passenger car-derived vans with cargo box with no more
than three seats.
50% of Table B: four-wheel drive pick-ups with a gross weight less than or equal to 3.5t and with more
than three seats, including the driver’s seat.
30% of Table B: motor caravans.
15% of Table B: two-wheel drive pick-ups, dual-purpose passenger/cargo vehicles with a gross weight
greater than 2.3t and a cargo box measuring at least 1.45m (length) by 1.3m (height) or two-wheel
drive pick-ups with no more than three seats.
10% of Table B: pick-ups with a gross weight less than 3.5t with three or fewer seats, including the
driver’s seat; passenger car-derived (vans) with a cargo box with a height of more than 1.20m.
0% of Table B (exempted): two-wheel drive pick-ups and passenger car-derived vans with a gross
weight equal to 3.5t.
In addition to the total ISV, where PM emissions are more than or equal to 0.001g/km, a tax of €250 is
levied on diesel light commercial vehicles (LCVs) subject to the 10% rate of Table B, and of €500 for
diesel LCVs subject to other rates.
Table C – Motorcycles
Cylinder capacity range (cm³) Tax (€)

120–250 66.90
251–350 83.08
351–500 111.13
501–750 167.24
> 750 222.27

180
PORTUGAL
1.2 VAT
VAT at the rate of 23% is calculated on the net price after all discounts, but inclusive of ISV. The private
sale of second-hand vehicles between individuals is not subject to VAT.
The sale of second-hand vehicles by taxable persons is subject to VAT (at 23%), which is calculated
according to the EU rules on second-hand vehicle taxation. The tax is applied to the difference between
the sale price and the purchase price (gross profit). The costs of repairs are not included in the
purchase price.
1.3.1 VAT
The VAT applied to commercial vehicles, including delivery vans, pick-ups and passenger car-derived
vans (with less than three seats) is deductible by companies. The VAT paid on diesel, LPG,
compressed natural gas and biofuels (23%) consumed by company cars is deductible by companies
(owners of those vehicles) at the rate of 50%.
The VAT applied to the costs of acquisition, manufacture, import, leasing and transformation of cars
or dual-purpose vehicles that serve as tour vehicles is deductible when those vehicles are:
• electric (with an acquisition cost less than €62,500);
• hybrid plug-in (with an acquisition cost less than €50,000); or
• powered by LPG or compressed natural gas (CNG) in the proportion of 50% (with an
acquisition cost less than €37,500).

The straight-line method is used at rates varying according to vehicle type, as follows:
Vehicle type Annual rate of depreciation (%)

Light vehicles (weighing up to 3.5t) 25.00
(passenger and goods vehicles)
Heavy vehicles – buses 20.00
Heavy vehicles – passenger 14.28
Trailers (transport of goods) 20.00
Agricultural tractors 16.66
Expenses on company cars exceeding the following amounts are not considered depreciation costs
of the company:
• Electric cars – €62,500
• Hybrid plug-ins – €50,000
• LPG/CNG-fuelled cars – €37,500
• Others – €25,000

1.4.1 Issue of a new licence plate
The registration tax is €45 for all vehicle types.
New licence plates are issued by the Government Traffic Department (Instituto da Mobilidade e dos
Transportes – IMT) just before purchase by the consumer and after payment of ISV.

181
PORTUGAL
1.4.2 Ownership registration
Vehicle type Registration tax (€)

All types First registration: 55.00
Subsequent registrations: 65.00
Use of the online registration system attracts a reduction of 50% on the fees mentioned above.
The transfer of property must be registered with the department of the Ministry of Justice that issues
the document titled Documento Uníco Automóvel (DUA).
2.1 CIRCULATION TAX (IUC)

The circulation tax (Imposto Único de Circulação – IUC) for passenger cars, off-road vehicles and
multipurpose vehicles weighing up to 2.5t combines a cylinder capacity component with an
environmental component (based on CO2 emissions). For other vehicles, the tax is based exclusively
on gross weight.
Table A: Passenger cars, off-road vehicles and multipurpose vehicles up to 2.5t registered from
1981 until 1 July 2007
Type of fuel Electricity Annual tax according to the year of registration (€)
Petrol (cm3) Other (cm3) Total voltage After 1995 1990-1995 1981-1989
≤ 1,000 ≤ 1,500 ≤ 100 18.42 11.61 8.14
1,001–1,300 1,501–2,000 > 100 36.96 20.77 11.61
1,301–1,750 2,001–3,000 57.63 32.27 16.19
1,751–2,600 > 3,000 146.47 77.25 33.39
2,601–3,500 265.98 144.83 73.75
> 3,500 473.90 243.43 111.85
Table B: Passenger cars, off-road vehicles and multipurpose vehicles weighing up to 2.5t and
registered after 1 July 2007
Cylinder capacity component Environmental component
Cylinder capacity (cm3) Tax (€) CO2 emission (g/km WLTP) Tax (€)
≤ 1,250 29.39 ≤ 140 60.28
1,251–1,750 58.97 141–205 90.33
1,751–2,500 117.82 206–260 196.18
> 2,500 403.23 > 260 336.07
Additional tax for passenger cars, off-road vehicles and multipurpose vehicles weighing up to 2.5t
and registered after 1 July 2007
CO2 range (g/km WLTP) Tax (€)
205 < CO2 < 260 29.39
> 260 58.97

182
PORTUGAL
To determine the total value of IUC, the value obtained from these tables must be multiplied by the
following rates, depending on the year of purchase of the vehicle:
Year of purchase (category B vehicle) Coefficient
2007 1
2008 1.05
2009 1.10
2010 and after 1.15
Table C: All vehicles used for the carriage of goods, including cars and agricultural tractors whose
maximum permissible weight exceeds 2.5t and trailers, except transport company fleets, are taxed
on the gross weight of the vehicle according to the following tables:
Vehicles with GVW1 < 12t
GVW (kg) Annual tax (€)
≤ 2,500 32.52
2,501–3,500 53.85
3,501–7,500 129.04
7,501–11,999 209.31
Annual taxes for vehicles with a gross vehicle weight equal or superior to 12t depend on the year of
first registration, number of axles and suspension type and vary between €190 and €893.
Articulated vehicles and combination vehicles

Annual taxes for articulated vehicles and combination vehicles depend on the year of first registration,
number of axles and suspension type and vary between €189 and €1,179.
Table D: All vehicles used for the public transportation of goods (transport company fleets) are levied
with this tax, which depends on the gross weight of the vehicle according to the following tables:
Vehicles with GVW < 12t
GVW (kg) Annual tax (€)
≤ 2,500 17.27
2,501–3,500 29.47
3,501–7,500 67.06
7,501–11,999 111.76
Annual taxes for vehicles with a gross vehicle weight equal or superior to 12t depend on the year of
first registration, number of axles and suspension type and vary between €110 and €680.
Articulated vehicles and combination vehicles

Annual taxes on this table depend on the year of first registration, number of axles and suspension
type and vary between €109 and €929.
1 Gross vehicle weight

183
PORTUGAL
Table E: Motorcycles, tricycles, quadricycles
Cylinder capacity (cm³) Year of first registration

Annual tax (€)
After 1996 1992–1996
120–250 5.73 0.00
251–350 8.10 5.73
351–500 19.59 11.59
501–750 58.86 34.66
> 750 127.82 62.69
3 TAXES ON MOTORING
3.1 FUEL TAXES

Price of fuel (€/l) (December 2019)
Eurosuper 95 Diesel
Price without taxes 0.472 0.508
VAT 0.264 0.235
Tax on petroleum products (ISP) and others 0.667 0.513
Note: ISP, Imposto Sobre Produtos Petrolíferos.

Expenses on company cars exceeding the following amounts are not considered costs of the
company:
• Electric cars – €62,500
• Hybrid plug-ins – €50,000
• LPG/CNG-fuelled cars – €37,500
• Others – €25,000
Company cars are taxed as part of corporate income tax at the following rates:
Acquisition cost (€) Electric cars (%) Hybrid plug-in (%) CNG (%) Other (%)
< 27,500 0 5 7.5 10
27,500–35,000 0 10 15 27.5
> 35,000 0 17.5 27.5 35
On the other hand, employees’ private use of company cars is taxable in terms of an autonomous tax
of personal income tax at the following rates:
Acquisition cost (€) Electric cars (%) Hybrid plug-in (%) LPG/CNG (%) Other (%)
< 20,000 0 5 7.5 10
≥ 20,000 0 10 15 20

184
24
ACEA TAX GUIDE 2021
Romania
Chapter prepared by
Adrian Sandu
[email protected]
ACAROM
Association of Automobile Manufacturers
in Romania
Str Banu Maracine, BI.D5
RO — 110194 Pitesti
T. +40 248 21 99 58
F. +40 248 21 12 45
www.acarom.ro
ROMANIA
1.1 VAT
The sale of new vehicles is subject to VAT at the rate of 19%, levied on the value of the vehicle. For
vehicles imported from outside EU, VAT applies to the value of the vehicle plus customs duty.

Registration plates: RON 40 (€8.36).
1.3 INCENTIVES ON VEHICLE ACQUISITION

Fleet renewal scheme includes a scrappage program with incentive bonuses as follows:
a) A scrappage bonus of RON 6,500 is granted for scrapping a vehicle older than eight years and
a bonus of RON 1,000 for the acquisition of a new vehicle with CO2 emissions lower than
96g/km or a new vehicle with LPG.
b) A subvention of €10,000 is granted for the purchase of a new pure electric vehicle to which RON
6,500 can be added for scrapping a vehicle older than eight years.
c) A scrappage bonus of RON 6,500 is granted for scrapping a vehicle older than eight years and
a bonus of €4,500 for the acquisition a new hybrid plug-in vehicle and RON 2,500 for the
acquisition a new hybrid non plug-in vehicle.
2.1 OWNERSHIP TAX

The ownership tax is paid once a year to the local administration. The values are calculated as fixed
sums for each 200cc of engine displacement.
For passenger cars, the rates of the annual ownership tax are:
Engine displacement (cc) Rate for each 200cc (RON)

≤ 1,600 8.00
1,601–2,000 19.00
2,001–2,600 76.00
2,601–3,000 153.00
≥ 3,001 308.00
For buses the system is the same, but the value is RON 24/200cc.
For commercial vehicles weighing less than 12t gross vehicle weight (GVW), the rate is RON 31/200cc.
For commercial vehicles weighing more than 12t the tax varies depending on GVW and number of axles,
from RON 149 to a maximum of around RON 2,567.
There is no ownership tax for electric vehicles.

186
ROMANIA
3 TAXES ON MOTORING
3.1 ROAD TAX

Road tax is paid once a year to the National Road Administration.
Payment of the tax is shown by a sticker (the rovigneta) on the windscreen. Payment is due only for
vehicles using the roads outside the cities.
Vehicle category Period of use of the Romanian road network Tariff VAT included (€)
A Passenger cars 1 day –
7 days 3.00
30 days 7.00
90 days 13.00
1 year 28.00
B Commercial vehicles ≤ 3.5t 1 day –
7 days 6.00
30 days 16.00
90 days 36.00
1 year 96.00
C Commercial vehicles > 3.5t and 1 day 4.00
≤ 7.5t 7 days 16.00
30 days 32.00
90 days 92.00
1 year 320.00
D Commercial vehicles > 7.5t and 1 day 7.00
≤ 12t 7 days 28.00
30 days 56.00
90 days 160.00
1 year 560.00
E Commercial vehicles > 12t with 1 day 9.00
maximum 3 axles (inclusive) 7 days 36.00
30 days 72.00
90 days 206.00
1 year 720.00
F Commercial vehicles > 12t with 1 day 11.00
minimum 4 axles (inclusive) 7 days 55.00
30 days 121.00
90 days 354.00
1 year 1,210.00
G Minibuses with ≥ 9 seats and 1 day 4.00
≤ 23 seats 7 days 20.00
30 days 52.00
90 days 120.00
1 year 320.00
H Buses with > 23 seats 1 day 7.00
7 days 35.00
30 days 91.00
90 days 210.00
1 year 560.00

187
ROMANIA
3.2 FUEL TAXES

Excise taxes on fuels, as from 1 January 2020, are as follows:
• Unleaded petrol – RON 1,773/1,000l

• Diesel – RON 1,625/1,000l
3.3 INSURANCE TAX

In Romania, third-party insurance is mandatory. It covers only the harm done to the victim, not the harm
done to the liable party. Full-cover insurance (CASCO) is optional.
Mandatory insurance must be paid for by all vehicle owners. The rates are set by the insurance
companies. They vary according to the class of the vehicle and its engine displacement (regardless of
whether the engine is petrol or diesel), owner’s age, geographical region, traffic history and insurance
company. Mandatory insurance includes the ‘green card’ (insurance valid outside Romania). For a
passenger car with a cylinder capacity of 1,400cc, the rate is approximately €80/year.
Full-coverage insurance usually costs 5-8% of the value of the insured vehicle per year. The rate is
generally set by the insurance company, mainly based on the type of vehicle and the client’s history.

Every vehicle must pass a technical inspection.
• For passenger cars older than 12 years: every year

• For passenger cars and LCVs: every two years
• For commercial vehicles weighing more than 3.5t: every year
• For vehicles used for public transportation (including taxis): every six months
The inspection is carried out by selected workshops authorised by the Romanian Auto Register. To be
authorised, a workshop must be able to prove that it has all the necessary equipment, including, inter
alia, an exhaust gases analyser, a roller brake stand and a light check stand. The inspection covers all
the parts of the vehicle that relate to safety or pollution. The results are centralised via a computer
network by the Romanian Auto Register. The vehicle owner receives a certificate and two stickers to be
placed on the registration plates.
Usual prices1:
• Passenger car – RON 150

• Commercial vehicle weighing under 3.5t – RON 170
• Commercial vehicle weighing over 3.5t – minimum RON 250
1Exchange
rate: €1 = RON 4.75

188
25
ACEA TAX GUIDE 2021
Slovakia
Chapter prepared by
Viktor Marusak
[email protected]
AIA SR (ZAP SR)

Automotive Industry Association
of the Slovak Republic
Westend Plazza - Lamacská cesta 3/C
SK — 84104 Bratislava
T. +421 2 4364 22 35
F. +421 2 4364 22 37
www.zapsr.sk
S LOVA K I A
1.1 VAT
VAT paid when importing the vehicle 20%
Import duty from outside the EU 10%
1.1.1 Input VAT deduction
A person registered for VAT can deduct VAT on the purchase of vehicles for taxable business use in full. If
the vehicle is used for both business and non-business purposes (eg for employees' private use), the VAT
payer is entitled to a partial deduction corresponding to the scope of vehicle’s use. In case of full deduction,
the VAT payer will be obliged to charge output VAT on non-business use of such a vehicle.
1.2 CORPORATE TAX-DEDUCTIBLE COSTS

In certain situations, the taxpayer is allowed to include in allowances for depreciation the price of a personal
vehicle up to a maximum total value of €48,000 (including related costs). A personal vehicle is included in
the first depreciation group (four years).
The formula for one year´s depreciation is:
(vehicle value + related costs)/4 = up to €12,000
If the overall tax base of a taxpayer is lower than this depreciation, the difference between the fourth real
value plus related costs and the maximal depreciation (€12,000) is added to the taxpayers’ tax base.
Since 1 January 2020 a new depreciation group ‘0’ for electric vehicles was established. Personal battery
electric vehicles (BEV) or plug-in electric vehicles (PHEV) in a combination with other fuel type or energy
source are depreciated for two years.

The fee for registration of a vehicle in category L, M1 or N1, except for N1 vehicles with a maximum of three
seats, in the vehicle registry of the Slovak Republic, including necessary adjustments to the relevant
documents and the issuing of such documents, amounts to at least €33 and is calculated according to the
following formula:
RP = PkW × RV1-n
where:
RP is the amount of the fee
PkW is the fee rate for the registration of a vehicle in euros depending on the engine power (on the first
registration of the vehicle), values for which are given in Table 1
RV1-n is the coefficient of the vehicle’s residual value, according to its age in years from the date of first
registration of the vehicle, values for which are given in Table 2
It is also possible to request faster issuance of evidence number within two working days. In this case, the
fee for respective service is €30. Since 1 August 2019 it is no longer necessary to submit an official
application in a case of registration of the vehicle to the vehicle evidence as well as application for
execution of changes in the vehicle evidence.

190
S LOVA K I A
The assignment of a registration number and the issuing of a registration plate costs €16.50 for each plate.
Table 1: Rates for registration depending on engine power

Engine power in kW Fee (€)
> ≤
0 80 33.00
80 86 90.00
86 92 110.00
92 98 150.00
98 104 210.00
104 110 260.00
110 121 360.00
121 132 530.00
132 143 700.00
143 154 870.00
154 165 1,100.00
165 176 1,250.00
176 202 1,900.00
202 228 2,300.00
228 254 2,700.00
254 3,900.00
Table 2: Coefficient of residual value according to age

Age of the vehicle (including day of the first registration) Coefficient of vehicle residual value
First registration 1.00
Up to 1 year 0.82
Up to 2 years 0.68
Up to 3 years 0.56
Up to 4 years 0.46
Up to 5 years 0.38
Up to 6 years 0.32
Up to 7 years 0.26
Up to 8 years 0.23
Up to 9 years 0.19
Up to 10 years 0.16
Up to 11 years 0.14
Up to 12 years 0.12
Up to 13 years 0.10
Up to 14 years 0.09
Up to 15 years 0.08
Up to 16 years 0.07
Over 16 years 0.06

191
S LOVA K I A
Registration of vehicles in other categories, and registration of trailers, is subject to a charge of €33,
including adjustments to and the issuing of the necessary documents.
Registration of vehicles whose only source of power is electricity is subject to a charge of €33, including
adjustments to and the issuing of the necessary documents.
Registration of a previously unregistered vehicle in category L, M1 or N1 intended for sale is subject to a
charge of €33 if the registered vehicle holder is a vehicle manufacturer, vehicle manufacturer’s
representative, or legal entity or individual entrepreneur whose business is the sale of vehicles as part of a
contractual relationship with a vehicle manufacturer or a vehicle manufacturer’s representative. This
includes adjustments to and the issuing of the necessary documents. This does not apply to N1 vehicles
with fewer than four seats.
There are no typical ownership taxes in the Slovak Republic.
2.1 MOTOR VEHICLE TAX (FORMER ROAD TAX)

The legislation concerning tax on motor vehicles is specified in Act No 361/2014 Z.z. and its supplements.
Any category L (motorcycles), M (vehicles for the transport of persons), N (cargo vehicles) and O (trailers)
vehicles registered in the Slovak Republic and used for business are subject to motor vehicle tax. Exempt
from the tax are test vehicles with special registration plates concerning letters M, H or S, special vehicles
not intended for the transport of persons, vehicles of diplomatic missions, emergency vehicles, public
transport vehicles, vehicles used in agriculture, and forestry vehicles. The taxpayer may be the owner or
keeper of the vehicle, the vehicle user or the employer.
The rate of tax increases gradually depending on the age of the car. The base rate of vehicle tax is reduced
by 25% for new vehicles of 0–36 months of use, by 20% for 36–72 months of use and by 15% for 72–108
months of use. Subsequently the tax rate is increased by 20% for vehicles aged 13 years or more. Hybrid
vehicles, vehicles powered by compressed natural gas (CNG) or liquefied natural gas (LNG) and vehicles
powered by hydrogen drive attract 50% of the tax. Electric-powered vehicles are not subject to motor vehicle
tax. The tax liability arises on the date when use of the vehicle for business begins (not from the date of
purchase). It expires on the date on which the business use of the vehicle stops.
The amendment to the Motor Vehicle Tax Act effective from 1 December 2020 has been introduced by the
Act No 339/2020. Significant amendments include the following elements:
• New annex
A new annex determining the fixed tax rates set specifically for trailers and semi-trailers has been
introduced. Obligatory pairing of trailers and semi-trailers to semi-trailer combination of vehicles is
abolished.
• Annual tax rate amendments
o Annual tax rate based on the age of the vehicle remains the same for the vehicles of the
categories L, M1, N1, N2, O1 to O3.
o A preferential adjustment of the annual tax rate based on the age of the vehicle is introduced
for vehicles of categories M2, M3, N3.
o A flat decrease of the annual tax rate is introduced for the vehicles of the category O4,
regardless of the age of the vehicle.

192
S LOVA K I A
a) Vehicles in categories L, M and N powered by electric energy

Electric-powered vehicles are not subject to motor vehicle tax.
b) Passenger cars (categories Le1–Le7 and M1)
≤ 150cm3 €50.00
151–900cm3 €62.00
901–1,200cm3 €80.00
1,201–1,500cm3 €115.00
1,501–2,000cm3 €148.00
2,001–3,000cm3 €180.00
> 3,000cm3 €218.00
c) Commercial vehicles and buses (categories M2, M3, N1, N3, O1, O4)
Depending on gross vehicle weight (GVW) and number of axles: from €74 up to €2,790 maximum.
3 TAXES ON MOTORING
3.1 FUEL TAXES

Taxes applicable on mineral oils are specified in Act No 98/2004 Coll. The amendment to the Act
No 98/2004 effective from 1 January 2021 has been introduced by the Act No 387/2020.
Taxes are determined as follows:

Fuel Excise duty (€/1000l or VAT (%)
€/1000kg)
Petrol 514.00 20
(depending on the type and on the 597.49
content of the biogenic substance)
Medium oil (eg kerosene) 481.31
Diesel 368.001 20
(depending on the type and on the
content of the biogenic substance)
Liquefied petroleum gas (LPG) 182.00 20
3.2 INSURANCE
Generally
Liability insurance is compulsory for all registered motor vehicles. Rates are not regulated and there are
small differences depending on the insurance company. Rates are specified as base rates, with additional
charges for taxi cars, vehicles for hire and vehicles used by driving schools. The rate depends on engine
rating and vehicle purpose.
Rates
Rates are calculated by insurance companies and vary from company to company. Insurance rates are
based on owner status and the vehicles concerned.
1
The lowered tax rate can only be applied if the biogenic substance fulfils the sustainability criteria under special regulations

193
S LOVA K I A
Many aspects influence the final insurance rate, including number of traffic accidents (bonus/malus around
50%) caused by the owner, the owner’s age, the vehicle’s engine power, purpose, etc. The payer may be the
owner or the keeper of the vehicle.
Approximate annual rates:

Motorcycles (cm3) Rate (€)
≤ 50 31.00
50–350 40.00
> 350 133.00
Passenger cars (up to 3.5t GVW) (cm3) Rate (€) Passenger cars (up to 3.5t GVW) (kW) Rate (€)
≤ 1,300 120.00 < 57 116.00
1,301–1,800 195.00 58–85 170.00
1,801–2,500 320.00 86–125 220.00
> 2,500 400.00 > 125 229.00
LCVs (up to 3.5t GVW) (cm3) Rate (€) LCVs (up to 3.5t GVW) (kW) Rate (€)
≤ 1,300 120.00 < 57 116.00
1,301–1,800 222.00 58–85 175.00
1,801–2,500 330.00 86–125 220.00
> 2,500 410.00 > 125 235.00
Trucks (kg) Rate (€)

3,500–12,000 755.00
> 12,000 1,012.00
Buses (kg) Rate (€)

For public transport only 714.00
≤ 5,000 731.00
> 5,000 1,086.00
Trolleybuses Rate (€)

For public transport only 814.00
3.3 ROAD PRICING

Highway fees for motor vehicles
On 1 December 2015, the Slovak Republic introduced an electronic system for vignette payment collection
and records (hereafter referred to as the ‘electronic vignette system’) for the use of specified sections of
motorways and expressways. The obligation to purchase an electronic vignette before using specified
sections of motorways and expressways in the Slovak Republic generally applies to motor vehicles with a
total technically permissible weight of up to 3.5t. Selected groups of these vehicles shall, after meeting the
relevant legislative conditions, be exempt from paying the vignette. In a case of overstepping the limit of
total technically permissible weight of 3.5t, vehicles are subject to toll payment before using the specified
sections of motorways and express ways in the Slovak Republic as described within section ‘Toll
payments”.

194
S LOVA K I A
Types of electronic vignette
The types of electronic vignettes for the use of the specified road sections are regulated by the provisions
of Section 2(2) and Section 3 of Act No 488/2013 Coll on Electronic Vignette and on amending and
supplementing certain acts as amended (hereinafter referred to as the ‘Electronic Vignette Act’), based on
which the electronic vignette payment is made for one calendar year, 356 days, 30 days or 10 days, while:
• a 1-year electronic vignette is valid from 1 January of the relevant calendar year (or the day of its
payment for the vignette by the customer in the relevant calendar year) until 31 January of the
following calendar year;
• a 365-day electronic vignette is valid for 365 days including the day specified by the user of the
specified road sections;
• a 30-day electronic vignette is valid for 30 days including the day specified by the customer;
• a 10-day electronic vignette is valid for 10 days including the day specified by the customer.
Pursuant to the provision of Section 2(1)(a, b) of Act No 488/2013 Coll on Vignette and on amending certain
acts as amended (hereinafter referred to as ‘Act No 488/2013 Coll’ on Vignette as amended’ or the ‘Act’),
the obligation of vignette payment for the use of specified sections of motorways and expressways marked
by traffic signs (hereinafter referred to as ‘specified road sections’) applies to:
• two-track motor vehicles or vehicle combinations up to 3.5t;
• two-track motor vehicles of M1 category regardless of the total maximum technically permissible
weight;
• two-track vehicle combinations consisting of a motor vehicle of M1 or N1 category regardless of
the maximum technically permissible weight of the vehicle combination.
The specified road sections marked by traffic signs may be used, in accordance with the law, following the
payment of an electronic vignette for their use. On the basis of the provisions of Section 2 and Section 5 of
the Act and in accordance with the provision of Section 1 of the Government Regulation, an electronic
vignette must be purchased for a vehicle and in case a vehicle combination whose maximum technically
permissible weight is over 3.5t also for the trailer. This information is displayed in the table below (also
available at eznamka.sk/en/evignettes/types-and-prices):

195
S LOVA K I A
*The total maximum permissible weight of a vehicle and the maximum permissible weight of a vehicle combination are defined by
the figure in section 1 of the Vehicle Registration Certificate
Based on the above factual and legal facts in the case of a two-track vehicle combination with a total weight
of up to 3.5t, the vignette payment for the trailer is not required, ie the obligation of vignette payment for
the use of the specified sections of motorways and expressways applies to the vehicle exclusively.

196
S LOVA K I A
The amount of vignette payments, ie current prices of vignettes in euros including VAT, are as follows (also
available at eznamka.sk/selfcare/purchase):
Annual GVW < 3.5t €50.00
Trailers €50.00
365 days GVW < 3.5t €50.00
Trailers €50.00
GVW 3.5–12t Toll
GVW > 12t Toll
9 months GVW 3.5–12t Toll
GVW > 12t Toll
1 month GVW < 3.5t €14.00
Trailers €14.00
GVW 3.5–12t Toll
GVW > 12t Toll
10 days GVW < 3.5t €10.00
Trailers €10.00
GVW 3.5–12t Toll
GVW > 12t Toll
1 day GVW 3.5–12t Toll
GVW > 12t Toll
Toll payments
The toll rates are regulated by Section 4 of Act No 474/2013 Z.z. on the collection of tolls for the use of
specified road sections and on amendments and supplements to certain laws as amended.
The method of toll calculation and the toll rate are set out in Slovak Government Regulation
No 497/2013 Z.z. as amended, which stipulates the method of toll calculation, the toll rate and the system
of discounts that apply to the use of specified road sections and to vehicles depending on vehicle category,
EURO emission class and number of vehicle axles.
According to the above-mentioned Government Regulation, the toll rates are determined specifically for the
following vehicle categories:
• Vehicles with a total maximum permissible weight from 3.5t to 12t according to the EURO vehicle
emission class, and regardless of the quantity of axles determined for the transportation of more
than nine passengers including a driver, and vehicles not determined for the transportation of
passengers;
• Vehicles with a total maximum permissible weight of 12t or more according to the EURO vehicle
emission class and regardless of the quantity of axles determined for the transportation of
passengers;
• Vehicles with a total maximum permissible weight of 12t or more according to the EURO vehicle
emission class, and quantity of axles not determined for the transportation of passengers.
According to the above-mentioned Government Regulation, the toll rates are determined specifically for the
use of:
• specified sections of highways and expressways;
• specified sections of first-class roads parallel with highways and expressways;
• specified sections of first-class roads not parallel with highways and expressways;
• specified sections of other first-class roads;
• specified sections of second and third-class roads.

197
S LOVA K I A
Toll rates for the use of specified sections of highways and expressways
Vehicle category Emission class
EURO 0–II (€) EURO III, IV (€) EURO V, VI, EEV (€)
Lorries 3.5–12t 0.108 0.098 0.085
> 12t 2 axles 0.231 0.209 0.181
3 axles 0.244 0.220 0.190
4 axles 0.253 0.228 0.198
5 axles 0.244 0.220 0.190
Buses 3.5–12t 0.064 0.053 0.032
> 12t 0.116 0.105 0.064
Toll rates for the use of specified sections of first-class roads parallel with highways and expressways
Lorries 3.5–12t 0.108 0.098 0.085
> 12t 2 axles 0.231 0.209 0.181
3 axles 0.244 0.220 0.190
4 axles 0.253 0.228 0.198
5 axles 0.244 0.220 0.190
Buses 3.5–12t 0.043 0.032 0.022
> 12t 0.085 0.074 0.043
Toll rates for the use of specified sections of first-class roads not parallel with highways and expressways
Lorries 3.5–12t 0.085 0.076 0.066
> 12t 2 axles 0.181 0.164 0.140
3 axles 0.190 0.172 0.147
4 axles 0.195 0.176 0.150
5 axles 0.190 0.172 0.147
Buses 3.5–12t 0.043 0.032 0.022
> 12t 0.085 0.074 0.043
No toll rates apply for the use of specified sections of other first-class roads and specified sections of
second- and third-class roads
The toll rates determined per kilometre of distance travelled on specified sections of other first-class roads
and on specified sections of second- and third-class roads do not include VAT.
Discounts on toll rates
In compliance with Section 4, Subsection 3, of Act No 474/2013 Z.z. on toll collection for the use of
specified road sections and on amendments and supplements to certain laws, as amended, the vehicle
operator may be eligible for a discount on the prevailing toll rate in accordance with the discounts system.
The method of calculating the discounts from the toll rates is governed by Slovak Government
Regulation No 497/2013 Coll stipulating the method of toll calculation, toll rate and the system of
discounts from the toll rates for the use of specified road sections as amended.

198
S LOVA K I A
The method and conditions of providing discounts from toll rates are as follows:
• Percentage discount from the toll rate shall be provided to a specific vehicle “liable to pay the toll”
in respect to the kilometres travelled on specified road sections exceeding the limits determined
in a calendar year, ie from 1 January until 31 December of the relevant year. The number of
kilometres travelled shall not include the kilometres travelled on the specified sections of roads
subject to a zero-toll rate.
• The relevant discount shall be applied to one specific vehicle ‘liable to pay the toll’ according to the
kilometres travelled, not for all the vehicles ‘liable to pay the toll’ of the specific Vehicle Operator
as the subject of law.
• The discount shall be applied in real time, ie when the vehicle exceeds the determined distance
(number of kilometres determined in advance) from the Specified Road Section following the
Specified Road Section on which the limit determined is achieved. In that case the toll payment will
be calculated automatically according to the distance travelled and the appropriate toll rate less
the determined discount percentage.
• The percentage discount from the toll rates will be provided to a vehicle with the valid and effective
Contract on the Use of Specified Road Sections, whereas the Vehicle Operator change requires a
new Contract on the Use of Specified Road Sections and also setting the number of kilometres
travelled to “zero”.
• The discounts from the toll rates do not apply to the vehicles with the toll payment liability over 3.5t
providing for the transport of more than nine persons including a driver, because these vehicles
had the toll rates decreased by 50% when the Electronic Toll System was set into operation.
Discount from toll rates
Minimum distance travelled during Percentage discount rates for individual vehicle categories
a calendar year (km) Lorries up to 12t (%) Lorries of 12t and more (%)
5,000–10,000 ─ ─
10,000–20,000 5 3
20,000–30,000 7 5
30,000–50,000 9 7
> 50,000 11 9

The use of a company car for private motoring is treated as a benefit in kind under personal income tax.
The amount to be added to an employee’s income before taxation is 1% of the purchase price of the
company car (including VAT) gradually reduced over eight years, for each month of use.
Moreover, the private use of a company car should be considered taking into consideration both the VAT
as well as the Corporate Income Tax. In line with the Act on Income Tax, all costs related to cars used
partially for private usage by employees can be treated as tax deductible only in the proportion of their
actual usage for business purposes, or based on the ratio 80:20 where 20% of these costs are treated as
non-deductible tax.
For further VAT implications, please see section 1.1.1 of this document.

Compulsory periodic inspections of road vehicles include regular technical inspections. Brand-new cars
undergo their first inspection after four years and every two years thereafter. Emissions are measured at
the same frequency.

199
26
ACEA TAX GUIDE 2021
Slovenia
Chapter prepared by
Mirko Fifolt
[email protected]
ADS
Association of Automobile
Manufacturers and Authorised Importers
Chamber of Commerce, Slovenia
Dimiceva 13
SI — 1000 Ljubljana
T. +386 1 58 98 217
F. +386 1 58 98 219
www.ads-slo.org
SLOVENI A
1.1 VAT

In accordance with the Motor Vehicle Tax Act - ZDMV, motor vehicle tax (DMV) is paid for vehicles that
are first placed on the market or registered for the first time on the territory of the Republic of Slovenia
and for vehicles from individual tariff codes as determined in the European Community Customs Tariff.
The following sections describe the specific contents of the ZDMV.
1.2.1 Object of taxation

On the basis of the ZDMV, DMV is paid from motor vehicles categorised under the following headings:
8703 21, 8703 22, 8703 23, 8703 24, 8703 31, 8703 32, 8703 33 and 8703 90 and of heading 8711 set
out in the European Community Customs Tariff published as Annex I of Council Regulation (EEC) No
2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff
(OJ L 256, 7.9.1987, p. 1), last amended by Commission Implementing Regulation (EC) No 2658/87 of
23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff Regulation
(EC) No 1101/2014 of 16 October 2014 amending Annex I to Council Regulation (EEC) No 2658/87 on
the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 312 of 31.10.2014, p.
1), which are first placed on the market or registered for the first time on the territory of the Republic of
Slovenia.
1.2.2 Tax liable for motor vehicles
The taxable person for tax accounting and payment is a producer or a person who acquires a motor
vehicle in another member state of the European Union or an importer of motor vehicles.
Acquisition of a motor vehicle from another member state of the European Union for the purposes of
this Act means the acquisition of goods within the Union, as defined in the Value Added Tax Act – ZDDV
– 1.
The importer referred to in the first paragraph of this Article shall be the customs debtor, determined in
accordance with the customs regulations or the consignee of the motor vehicle.
1.2.3 Exemptions
The tax exemptions provided for in Article 5 of the ZDMV are only an exception to the obligation to pay
tax on motor vehicles, which is why they are interpreted and treated restrictively.
1.2.3.1 Vehicles which are exported or delivered to another member state of the European Union
before the first registration
DMV is not paid from vehicles that are exported or delivered to another member state of the European
Union before the first registration. In this case, this is a direct exemption from DMV payment according
to the law itself.
1.2.3.2 Vehicles intended for the transport of families

DMV is not paid from vehicles purchased for the transport of families with three or more children, from
one motor vehicle with five or more seats, which is purchased once a year by one of the parents in a
family and that has three or more children who have not reached the age of 18 years.
Exemption under this point shall be exercised on the basis of evidence of a common household when
a declaration is lodged with the tax authority or when a customs declaration for release for free
circulation is lodged with a customs authority or by filing an application for a refund of the tax paid to

201
SLOVENI A
the tax authority within three months of the purchase, in the case of imports by the customs authority
within three months of importation.
The tax or customs authority shall return the tax paid under this Act within 30 days after the receipt of
the request.
The registration certificate and the register of households shall state that a refund of the tax for the
purchased vehicle is entered.
A motor vehicle cannot be sold or disposed of free of charge or otherwise disposed of before the expiry
of the three-year period from the date of purchase, otherwise it must pay the difference up to the full
amount of the tax, interest at the interest rate for default interest specified in the special law, namely
the law governing the tax process.
1.2.3.3 Vehicles purchased for the transport of disabled persons

DMV is not paid from vehicles purchased for the transport of people with disabilities, namely:
• from one motor vehicle with a petrol engine capacity of up to 1.8l and a diesel engine of up to
1.9l or with a petrol engine capacity of up to 2l and a diesel engine of up to 2.2l for a motor
vehicle with automatic steering;
• from a motor vehicle specially adapted for the transport of disabled people in a wheelchair,
which is purchased by disabled persons' organisations and persons who have a driving license
or need assistance from other persons holding a driving license, not more than once every five
years.
Persons under this item shall be counted as:
• persons with at least 80% physical impairment due to loss, malfunction or paralysis of the lower
limbs or pelvis;
• persons who have completely lost vision on both eyes;
• persons with moderate, severe or severe physical or mental disability who are recognised as
having a disability according to the law governing the social protection of physically and
mentally disabled persons;
• children who need special care.
The exemption under the first and second indents of the preceding paragraph shall be exercised
according to the regulations on pension and disability insurance on the basis of the decision of the
Pension and Disability Insurance Institute of Slovenia.
The exemption under the third indent of the second paragraph shall be exercised on the basis of a
decision on the recognised status of a disabled person in accordance with the regulations referred to
in this indent, or the decision of the competent center for social work, issued on the basis of an expert
opinion on the classification of children and youth with disabilities in physical and mental development.
The exemption under the fourth indent of the second paragraph shall be granted on the basis of a
decision of the Center for Social Work on the recognition of the child care allowance that needs special
care and protection in accordance with the law governing parental protection and family benefits.
The exemption for disability organisations is granted on the basis of a certificate from the ministry
responsible for work, family and social affairs.
An exemption shall be granted when filing a declaration with the tax authority or lodging a customs
declaration for release for free circulation at the customs authority or by filing a claim for a refund of
the tax paid to the tax authority within three months of the purchase, and, in the case of imports, at the
customs authority within three months of importation. The tax or customs authority shall return the tax
paid under this Act within 30 days after the receipt of the request.
In the traffic authorisation of such a bought or imported car, it is written that a tax refund has been
established for the purchased vehicle.
If an invalidity organisation, a disabled person or his parents or caregivers sell a motor vehicle or
dispose of it free of charge or otherwise, before the expiration of a five-year period from the date of

202
SLOVENI A
purchase or import, they must pay tax in the amount of the tax for which the refund was requested and
the related interest from the date of purchase, of imports up to the date of payment of the tax.
When the basic conditions are met, the right to exemptions under this item shall be re-established on
the day following such payment.
If a motor vehicle has been damaged in a car accident by more than 70% of the market value of a motor
vehicle on the day of the accident, the damaged motor vehicle may be sold without any tax paid.
If a disabled person dies before the expiry of a five-year period from the date of purchase or import of
a motor vehicle, the legal heirs may sell the motor vehicle that they inherited without paying the tax.
A military invalid of the first group exercising the right to additional costs to the costs of a technical
device - a personal motor vehicle under the Disabled War Veterans Act - does not have the right to a tax
exemption under this point.
If the beneficiaries are not drivers, the motor vehicle can be driven on their behalf by parents or
guardians or persons who have a written authorisation from the beneficiary, his/her parents or guardian
without the compulsory presence of a disabled person in a motor vehicle.
1.2.3.4 Vehicles for diplomatic purposes, consular missions and international organisations
DMV is not paid from vehicles for:
• the official needs of diplomatic and consular missions accredited in Slovenia;

• the official needs of international organisations, if so provided by international treaties that
bind Slovenia;
• personal needs of foreign personnel of diplomatic and consular missions accredited in
Slovenia, including their family members;
• the personal needs of foreign personnel of international organisations, including their family
members, if so provided by international treaties that bind Slovenia.
The beneficiaries of the exemption referred to in the preceding paragraph of the motor vehicle may not
be sold or disposed of free of charge or otherwise disposed of before the expiry of a period of three
years from the date of purchase or import until the tax is paid. If the beneficiaries of the exemption at
that point sell the vehicle, or free it free of charge, or otherwise dispose of it before the expiry of three
years from the date of purchase or import, they must pay tax in the amount of tax that would have been
paid if there were no exemption and the related interest from the day purchase or import until the date
of payment of the tax.
Notwithstanding the preceding paragraph, the tax shall not be paid if the alienation is the result of the
official early dismissal or death of the beneficiary, or if the motor vehicle is disposed of by the family
member of the beneficiary who ceases to be resident in Slovenia due to the early recall or death of the
beneficiary. The tax is also not paid if the motor vehicle that is alienated is damaged in a car accident
by more than 70% of the market value of the vehicle on the day of the accident.
If the ministry responsible for foreign affairs finds that in order to respect the condition of reciprocity,
in respect of the prohibition on alienation referred to in the second paragraph, a different time period
must be taken, it shall issue a corresponding certificate to the beneficiary.
1.2.3.5 Traders
DMV is not paid from vehicles that have the status of an old-fashioned vehicle in accordance with the
regulations on motor vehicles. More on the acquisition of the status of an ancient vehicle is published
on the website of the Public Agency of the Republic of Slovenia for Traffic Safety.
1.2.3.6 Vehicles temporarily imported from another member state of the European Union
DMV shall not be paid from vehicles that are temporarily imported if they are completely exempted from
payment of import duties in accordance with customs regulations and from vehicles entering Slovenia
from another member state of the European Union for the temporary resettlement of the owner who

203
SLOVENI A
does not reside in Slovenia, but only if, in accordance with the law governing value added tax, these
vehicles do not need to be subject to value added tax.
1.2.3.7 Sports cars

DMV is not paid from sports vehicles not designed for road traffic and intended for use only at racing
stations.
1.2.3.8 Status transformation of the owner

DMV is not paid from the transfer of vehicles in the event of a status change of the owner of the vehicle.
DMVs do not pay for those companies that are transforming - merging, unbundling or, for example,
transformed from a company with unlimited liability to a public limited company.
1.2.3.9 Emergency ambulance vehicles

DMV is not paid from interventional ambulances specially adapted for the transportation of casualties
and patients.
1.2.3.10 Financial leasing

The above tax exemptions can also be enforced in the financial leasing of a vehicle. If the finance lease
is interrupted or terminated and there is no transfer of ownership, the beneficiary who has exercised
the tax exemption must pay the tax that has been forfeited or returned in accordance with this Article.
1.2.4 Tax basis and tax level
1.2.4.1 Tax base

The tax base is the selling price of an individual motor vehicle without the value added tax.
As a selling price, when purchasing a motor vehicle from another member state of the European Union,
the purchase price is considered, and the value determined in the first to fourth paragraphs of Article
38 of the ZDDV-1 for imports.
If the selling price does not correspond to the transaction value or, if there is no payment, the taxable
amount is the transport value of these motor vehicles as determined by the tax authority. The tax
authority establishes the tax base on the basis of all the circumstances of the individual case, using as
the starting point for the determination of the traffic value, except in the case of importing a motor
vehicle, the orientation values of motor vehicles from catalogues for the evaluation of vehicles.
1.2.4.2 Tax rate

DMV rates are progressive and dependent on factors as follows.
As of 1 July 2012, an additional DMV depending on the volume of the engine is introduced for personal
use motor vehicles (including dwellings) of 2,500cc and for motorcycles, tricycles and quadricycles of
1,000cc. An additional tax is payable from the tax base set out above.
1.2.4.2.1 'Personal use' motor vehicles

The tax rate depends on the CO2 emissions of the vehicle and on the type of fuel used for propulsion
(petrol, liquefied petroleum gas, diesel, hybrid vehicle, electric):
Tax rate (%) of the tax base according to the type of fuel
CO2 emission (g/km)
Gasoline, liquefied petroleum gas Diesel
0–110 0.5 1
111–120 1 2
121–130 1.5 3
131–150 3 6
151–170 6 11
171–190 9 15

204
SLOVENI A
191–210 13 18
211–230 18 22
231–250 23 26
> 250 28 31
In order to correctly determine the tax rate, in addition to the CO2 emissions, the Euro release rate (Euro
3, Euro 4, Euro 5, etc) should be taken into account, as well as diesel particulate emissions (less than
or greater than 0.005 g/km).
If a motor vehicle uses any other propulsion, including an electric one, or a combination of different
drives (hybrid vehicle), the tax rate shall be determined by taking into account the scale applicable to
petrol vehicles. For motor vehicles with at least eight seats, the tax rate is reduced by 30%.
For motor vehicles that do not have a CO2 release, a rate of 28% is applied to vehicles powered by petrol
or liquefied petroleum gas, and 31% for diesel-powered vehicles.
Rates of additional tax for passenger cars
The rate of additional tax on motor vehicles of headings 8703 21, 8703 22, 8703 23, 8703 24, 8703 31,
8703 32, 8703 33 and 8703 90, except for tricycles and quadricycles, depends on the volume of the
engine and is as follows:
Engine volume (in cm³) Rate of additional tax (%) of the tax base
0–2,499 0
2,500–2,999 8
3,000–3,499 10
3,500–3,999 13
≥ 4,000 16
1.2.4.2.2 Motorcycles (including mopeds), bicycles with engines, tricycles and quadricycles
The tax rate depends on engine power in kW.
Engine power (kW) Tax rate (%) of the tax base
≤ 25 1.5
25–50 2
51–75 3
> 75 5
In addition, the Euro standards of the release rate are also taken into account in determining the margin,
ie for the rate of discharge below Euro 2, the tax rate shall be increased by 10 percentage points, and
the rate of tax shall increase by 5 percentage points for the Euro 2 release rate.
For motor vehicles from this point with a two-stroke engine, the tax rate is increased by 3 percentage
points.
For motor vehicles from this point on an exclusive electric drive, the tax rate is 0.5%.
Rates of additional tax

The rate of additional tax depends on the volume of the engine and amounts to:
Engine volume (cm³) Rate of additional tax (%) of the tax base
< 1,000 0
≥ 1,000 5

205
SLOVENI A
1.2.4.2.3 Vehicles Tax rate depends on engine power in kW
Engine power (kW) Tax rate (%) of the tax base

≤ 60 6
61–90 9
91–120 13
> 120 18
In addition, the Euro standards for the release rate (Euro 3, Euro 4, Euro 5, etc) are also taken into
account for the determination of the rate, and for diesel engines, the level of solid particles release (less
than or more than 0.005 g/km).
For motor vehicles from this point on an exclusive electric drive, the tax rate is 0.5%.
Rates of additional tax for accommodation
The rate of additional tax on motor vehicles of headings 8703 21, 8703 22, 8703 23, 8703 24, 8703 31,
8703 32, 8703 33 and 8703 90, except for tricycles and quadricycles, depends on the volume of the
engine and is as follows:
Engine volume (cm³) Rate of additional tax (%) of the tax base
0–2,499 0
2,500–2,999 8
3,000–3,499 10
3,500–3,999 13
≥ 4,000 16
1.2.5 Development of obligations of the DMV account
The obligation to calculate the tax arises when the turnover of motor vehicles is affected. Motor
vehicles are deemed to have been carried out:
• when an invoice is issued for the sale of a motor vehicle;
• when a motor vehicle is delivered if it is delivered before the invoice is issued or without the
issue of an invoice;
• on importation: when a customs debt is incurred or would have arisen if the exemption from
customs duty or a certain rate of duty was not prescribed;
• when a motor vehicle is taken for its own use;
• when a motor vehicle is handed over if it is disposed of free of charge;
• when a motor vehicle is acquired from another member state of the European Union.
1.2.6 DMV accounting by manufacturers and traders with motor vehicles
A taxable person, a motor vehicle manufacturer or a person who, in pursuit of the activity of trade in
motor vehicles, obtains from another EU member state a motor vehicle that has not previously been
provisionally or permanently registered in another country and whose type has been approved in
accordance with the EC regulations approval certificate and a SA type-approval certificate issued for it,
shall charge a tax liability for the calendar month.
The taxable person must provide in his records the information on the vehicle's brand, the type and
model of the vehicle, the identification number (chassis number), CO2 emissions, engine power in kW,
engine operating mode (two-stroke, electric), particulate matter in g/km the rate of release Euro, the
date of issue of the certificate of conformity, the country of delivery, the date of acquisition, the value,
the tax base, the tax rate and the amount of the tax charged, and the rate of additional tax and the
amount of the additional tax charged.
The taxpayer shall, on the basis of the records referred to in the preceding paragraph, draw up a monthly
statement of tax which must be submitted to the tax authority by the last day of the month following
the expiration of the month for which the statement was drawn up.

206
SLOVENI A
The following information must be shown in the statement of account: basic information on the
taxpayer, taxable person's name, tax-payable data, vehicle brand data, vehicle type and model,
identification number (chassis number), CO2 emissions, power engine in kW, mode of operation of the
engine (two-stroke, electric), solid particle release in g/km, evolution rate Euro, date of issue of the
certificate of conformity, value, country of delivery, tax base, tax rate and amount of the tax charged.
The taxable person must submit tax returns to the tax authority, irrespective of whether he or she is
obliged to pay tax for the period for which the bill is submitted.
The bill is submitted exclusively in electronic form via the eTax system.
The taxable person must pay the calculated tax until the last working day of the month following the
end of the month in which the tax liability was incurred.
For all other taxpayers who, in accordance with the Vehicle Conformity Assessment Body, have to
obtain a certificate of conformity of a vehicle bearing the mark SB, the obligation for the announcement
for the assessment of the DMV is subject.
1.2.7 DMV Travel Department

A taxable person who acquires a motor vehicle from another EU member state and is not obliged to
charge a tax on the basis of a DMV account shall be taxed by the tax authority on the basis of the
forecast. The tax return shall be submitted by the taxable person no later than 15 days from the date of
acquisition of the motor vehicle. The following should be attached to the announcement:
• The original of the purchase amount, where the selling price and the date of acquisition must
be shown;
• A statement on the emission suitability of the vehicle, which the taxpayer obtains from the
professional organisation responsible for the conformity assessment; the statement contains
information on the vehicle and the vehicle type, the identification number (chassis number), the
CO2 emissions, the engine power in kW, the engine operating mode (two-stroke, electric),
particulate matter in g/km, the Euro release rate, the date of issue of the certificate of
conformity, the country of delivery, in the case of a vehicle that has already been previously
provisionally or permanently registered in another country;
• The original or certified copy of a registration document or a traffic authorisation (if the vehicle
has already been registered temporarily or permanently in another country).
If the motor vehicle is not registered in the tax authority’s register, the professional organisation
responsible for the conformity assessment may not issue a certificate of conformity of a vehicle type
SB. In accordance with the rules governing technical requirements for products and the conformity
assessment, if the issue of a certificate of conformity is not required, the authority responsible for
registration or the authorised organisation may not register a motor vehicle when a vehicle is registered
in a motor vehicle records of the tax authority. The tax is levied by the tax authority irrespective of the
residence or registered office of the taxpayer.
1.2.8 DMV Recovery
The beneficiary holds the right to repay a proportionate portion of the tax paid, if the motor vehicle from
which the tax was paid is exported, transferred to another EU member state and, consequently, it is
removed from the register of registered motor vehicles in Slovenia.
The beneficiary can only reimburse the refund once the motor vehicle has been unregistered from the
register of registered motor vehicles. The beneficiary can enforce the refund of the tax paid on the basis
of proof of payment of tax in Slovenia and the submission of evidence that the motor vehicle has left
the territory of Slovenia. Depending on the circumstances, the following must be considered as
evidence:
• Proof of export, issued or approved by the customs authority, from which it must be shown
that the motor vehicle has left the customs territory of the EU;
• Proof of registration of a motor vehicle in an EU member state or another country;
• Proof of actual delivery or transfer of a motor vehicle to another EU member state;
• An invoice issued to a customer in another EU member state;

207
SLOVENI A
• Proof of moving to another EU member state.
The amount of tax refund is calculated on the basis of the data on the actual tax paid in Slovenia and
the data on the period of use of the motor vehicle in Slovenia. The amount of tax actually paid is reduced
by 10% for each year of application in Slovenia. The date of the first registration of a motor vehicle in
Slovenia shall be considered as the beginning year of the use of a motor vehicle in Slovenia.
Notwithstanding the foregoing, however, for motor vehicles that were temporarily registered in Slovenia
for the purpose of exporting or delivery to another member state of the European Union for a maximum
of 30 days, the amount of repayment in the amount of 100% of the tax actually paid shall be determined.
Upon complying with the legal requirements, the DMV refund can also be claimed through a tax return.
The taxable person who calculates the tax liability for the calendar month and the conditions for tax
refund in the month of the tax are fulfilled may be taxed within the monthly calculation.
A tax return is submitted within three months of the expiration of the month in which the circumstances
that led to the claiming of a tax refund could arise.
2. INCENTIVES FOR THE ACQUISITION OF CLEAN VEHICLES IN 2018

On 22 February 2018, the Eco Fund published two new public invitations in the Official Gazette of the
Republic of Slovenia and on the website www.ekosklad.si. The Eco Fund's Supervisory Board has
confirmed the public calls 63SUB-EVPO18 and 62SUB-EVOB18 for the grants to new and
remanufactured electric vehicles to citizens and legal entities.
On behalf of legal entities, sole proprietors and private individuals, on the basis of a public call 63SUB-
EVPO18, €3,000,000.00 grants were awarded for electric vehicles; and for citizens, on the basis of a
public call 62SUB-EVOB18 tendered €2,500,000.00 for non-return vehicles.
A non-refundable financial incentive can be granted for:
• the purchase of a new vehicle of category M1, N1, L7e or L6e with no electric drive CO2
emissions at the discharge;
• the conversion of a vehicle into an electric vehicle or the purchase of a vehicle which has been
processed electrically vehicle so that the series-mounted internal combustion engine is
replaced by drive motors, categories M1, N1, L7e or L6e;
• the purchase of a new plug-in hybrid vehicle (plug-in) or new vehicle at electric drive with range
extender, with CO2 emissions per emissions of less than 50g CO2/km, category M1 or N1.
The amount of grant aid depends on the category of vehicle and is:
• €7,500 for a new electric vehicle without CO2 emissions or an electrically processed vehicle,
category M1;
• €4,500 for a new electric vehicle without CO2 emissions or a power-driven vehicle, category N1
or L7e;
• €4,500 for a new plug-in hybrid vehicle or a new electric vehicle with a range extender, with CO2
emissions at a discharge of less than 50g/km, category M1 or N1;
• €3,000 for a new electric vehicle without CO2 emissions or a power-driven vehicle, category
L6e.
• €1,000 for a new electric vehicle without CO2 emissions of category L3e or L4e or L5e;
• €500 for a new electric vehicle without CO2 emissions of category L1e-B or L2e;
• €200 for a new electric vehicle without CO2 emissions of category L1e-A.

208
27
ACEA TAX GUIDE 2021
Spain
Chapter prepared by
Aránzazu Mur
[email protected]
ANFAC
Spanish Association of Car
and Truck Manufacturers
C/ Orense, 34
ES — 28036 Madrid
T. +34 91 343 13 43
F. +34 91 345 03 97
www.anfac.com
S PA I N
1 ENGINE RATINGS
The engine rating is set out under Article 260 of the Motorway Code.
The computation of the engine rating, expressed in fiscal horsepower (hp), for motor vehicles is based
on the following formula:
a) for four-stroke internal combustion or spark-ignition engines:
hp = 0.080 × (0.785 × D2 × R)0.6 × N
b) for two-stroke internal combustion or spark-ignition engines:
hp = 0.11 × (0.785 × D2 × R)0.6 × N
where:
D = the diameter of the cylinder in cm

R = the stroke of the piston in cm
N = the number of cylinders of the engine
c) for rotary engines
hp = Re/7
The effective rating (Re) expressed in fiscal horsepower, will be determined by the official laboratory
appointed by the Ministry of Industry using the method of testing approved by the Ministry.
The engine rating indicated on the certificate of vehicle characteristics issued by the Provincial Office
of the Ministry of Industry will, in all instances, be the one which results from the application of the
formula to the appropriate type of engine, rounded to one decimal place.
2.1 VAT
VAT is imposed on the acquisition of a vehicle from a taxable person.
2.1.1 Rate of VAT for new vehicles
The rate of VAT charged on new vehicles is 21% since 1 September 2012.
2.1.2 Acquisition of a second-hand vehicle
• Transactions between individuals are not subject to VAT but are liable to property transfer tax at
the rate of 4%.
• Transactions involving car dealers are subject to the VAT provisions on second-hand goods.
The basis of taxation of motor vehicles sold under the special second-hand goods scheme (REBU,
Régimen Especial de Bienes Usados) is the difference between the purchase and the resale price, where
the resale price must be at least 10% of the purchase price.

VAT on the acquisition of a passenger car, and of its parts and accessories, is not deductible, except
by enterprises involved in the sale of motor vehicles.

210
S PA I N
VAT on the acquisition of a commercial vehicle is always deductible.
Specific rules provide that VAT on the following types of vehicles is deductible:
• Vehicles for the carriage of goods
• Vehicles used exclusively for public transport
• Vehicles used in driving schools
• Vehicles used in trials, tests, demonstrations and sales promotions
• Vehicles acquired by independent brokers and intended exclusively for business or professional
travel
• Vehicles used for the provision of security and surveillance
• Vehicles owned by a company the use of which cannot be considered as a benefit in kind for
employees
Vehicles purchased by a non-transport company are depreciated annually at a rate varying between a
minimum of 7.1% and a maximum of 16%.
2.3 SPECIAL TAX (2021)

The Special Tax (IEDMT, Impuesto Especial sobre Determinados Medios de Transporte) is applied on
the first definitive registration in Spain of motor vehicles, except in following cases:
• Vehicles of categories N1, N2 and N3. The tax applies to vehicles of category N1 only when they
are used in relation to an economic activity (at least 50% of the time)
• Vehicles of categories M2 and M3 and the tramway
• Vehicles for exclusive industrial, commercial or agricultural use, previously approved by the tax
authorities
• Motorbikes with two or three wheels and light quad bikes
• Motorcycles and vehicles with three wheels that are not quad bikes and have an engine capacity
of less than 250cc
• Special vehicles other than ‘quad’-type vehicles
• Multi-purpose vehicles with a total height of more than 1,800mm, except off-road vehicles. It
should be proven that the vehicle will be used in relation to an economic activity (at least 50% of
the time)
• Vehicles for exclusive use by governmental institutions
• Vehicles for exclusive use by government and regional institutions in their role of surveillance,
defence and security
• Ambulances and vehicles that with their specific characteristics cannot be used for any other
purpose than supervising and providing assistance on roads and motorways
On the other hand, the following vehicles are exempted from the tax:
• Taxis
• Vehicles for exclusive use by driving schools or rental services
• Vehicles registered by disabled persons, subject to specific requirements
• Vehicles for exclusive use by diplomatic and other similar services
2.3.1 Basis of taxation

• For new vehicles: same basis as for VAT.
• For used vehicles newly registered under an ordinary registration tax in Spain:
o Market value, or
o Value according to official tables published annually to be applied in ITP (Impuesto sobre
Transmisiones Patrimoniales), or
o Individual valuation by tax authorities

211
S PA I N
2.3.2 Rate of tax (new framework for registration taxes based on vehicles’ official CO2 emissions)
CO2 emissions (g/km) Rate (%)
Península and Baleares Islands Canary Islands Ceuta and Melilla
≤ 120 0 0 0
> 120–160 4.75 3.75 0
≥ 160–200 9.75 8.75 0
≥ 2001 14.75 13.75 0
Others2 12 11 0
Responsibility for the Special Tax has been transferred to regional governments (Comunidades
Autónomas), allowing them to increase the tax rate by up to 15% and to modify some other significant
tax aspects (exemptions, deductions, etc).
Therefore, the rate can rise to:

• 5.4% for CO2 emissions (g/km) > 120–160;
• 11.2% for CO2 emissions (g/km) ≥ 160–200;
• 16.9% for CO2 emissions (g/km) ≥ 200;
• 13.8% for other levels of CO2 emissions (g/km)3.
Currently, some regional governments apply the higher tax rate to only some groups, as follows:
CO2 Rate (%)

emissions Andalucía Asturias Baleares Cantabria Cataluña Extremadura Murcia Valencia
(g/km)
> 120–160 − − − − − 5.2 − −
≥ 160–200 − − − 9.75 − 11 − −
≥ 200 16.9 16 16 15 16 16 15.9 16
Others 13.8 12 13.0
2.3.3 Special Tax deductions
‘Large families’ incentives:

A reduction in the Special Tax of 50% is granted when a large family (ie a family with three or more
children) buys a vehicle (passenger car or four-wheel drive vehicle) with five or more seats.
‘Motor caravans’ incentives:

A reduction in the Special Tax of 30% applies for the acquisition of a motor caravans or vehicles adapted
to be used as accommodation.
2.4 REGISTRATION CHARGES (2021)

The registration fee is €98.78 for all types of vehicles, except motorcycles, for which the registration
fee is fixed at €27.57.
1 Also includes taxable vehicles whose level of CO2 emissions should have been provided but has not been proven, and vehicles
in categories N2 and N3 such as motor caravans, quad-type vehicles and nautical motorcycles
2 Vehicles not included in other groups, and ships, boats, light aircraft, aeroplanes and airships
3 Vehicles not included in other groups, and ships, boats, light aircraft, aeroplanes and airships

212
S PA I N

Private vehicles Engine rating
Commercial vehicles Payload
Motorcycles Cylinder capacity
3.2 RATES
3.2.1 Private cars
hp Minimum amount (€) Taxes applied in Madrid, 2021 (€)
<8 12.62 20.00
8−11.99 34.08 59.00
12−15.99 71.94 129.00
16−19.99 89.61 179.00
≥ 20 112.00 224.00
3.2.2 Buses and coaches

Seats Minimum amount (€) Taxes applied in Madrid, 2021 (€)
< 21 83.30 145.00
21−50 118.64 212.00
≥ 50 148.30 266.00

Payload Minimum amount (€) Taxes applied in Madrid, 2021 (€)
Lorries < 1,000kg 42.28 73.00
1,000−2,999kg 83.30 149.00
3,000−9,999kg 118.64 213.00
≥ 10,000kg 148.30 266.00
Tractive units < 16hp 17.67 32.00
16−25hp 27.77 50.00
≥ 25hp 83.30 149.00
3.2.4 Motorcycles
cc Minimum amount (€) Taxes applied in Madrid, 2021 (€)
< 125 4.42 7.00
125−250 7.57 12.00
250−500 15.15 27.00
500−1,000 30.29 60.00
≥ 1,000 60.58 121.00
Most important city councils (Madrid, Barcelona, Zaragoza, Valencia and others) are reducing the tax
on ownership for fuel-efficient vehicles (essentially for electric vehicles) by 75%.

213
S PA I N
4 TAXES ON MOTORING
4.1 FUEL TAXES

Average fuel prices in €/1,000l for January 2021
Euro-super petrol (ON 95) Diesel fuel LPG

Cost of product plus distribution profit 519.03 517.97 524.20
Excise and other taxes 472.69 379.00 57.47
VAT (21% of sales price) 208.26 188.36 122.15
Price at the pump 1,199.98 1,085.33 703.82
4.2 SPECIAL TAX ON FUEL SALES TO PRIVATE CONSUMERS (INCLUDED IN EXCISE AND OTHER
TAXES)
From 1 January 2019, the Special tax on fuel sales to private consumers is composed of two different
rates: a general rate (Tipo Estatal General), fixed at €400.69/1,000l for petrol and €307/1,000l for diesel,
and a special one (Tipo Estatal Especial) fixed at €72/1,000l for both petrol and diesel.
4.3 INSURANCE TAXES

Vehicle insurance premiums are liable for the Consorcio de Compensación de Seguros (CCS) at the rate
of 2%.
An additional tax imposed on the vehicle insurance premium is fixed at the rate of 6%.

The use of a company car for private purposes is regarded as a payment in kind and included in the
computation of personal income tax. In the case of private use, the rules to determine the payment in
kind are as follows:
Use of a company car
The amount of the payment is 20% of the cost of acquisition, including taxes. A reduction can be applied
depending on the ratio of private to corporate use, with 50% being a widely applicable figure.
In 2016 a reduction in the payment in kind for alternative vehicles was introduced:
Type of vehicle Price limit before taxes (€) Reduction (%)

Euro 6 < 120g CO2/km 25,000 15
HEV/LPG/CNG4 35,000 20
BEV/PHEV5 40,000 30
Free delivery of a car previously acquired by the company

Market value, including taxes.
4 Hybrid electric vehicles (HEV), liquefied petroleum gas (LPG) and compressed natural gas (CNG) vehicles
5 Battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV)

214
S PA I N
6.1 FREQUENCY OF INSPECTION OF MOTOR VEHICLES

Motorbike Inspection every two years after the third year
Motorcycles, quads Inspection every two years after the fourth year
Cars Inspection every two years after the fourth year
Annually after the tenth year
Lorries Inspection every two years from the second to the sixth year
Annual inspection from the sixth to the tenth year
Half-yearly inspection after the tenth year
Buses Annual inspection up to the fifth year
Half-yearly inspection after the fifth year
Trucks Annual inspection up to the fifth year
Thereafter, twice annually
Taxis Annual inspection up to the fifth year
Rental cars Annual inspection from the second to the fifth year
6.2 ORGANISATION OF THE INSPECTION

Motor vehicle inspection is carried out by the state directly or by private companies approved by the
regional authorities. There are 221 depots, and inspection take approximately 30 minutes for a car and
45 minutes for a commercial vehicle.
6.3 COST OF THE INSPECTION

The cost of the periodic inspection is determined by regional authorities that have not deregulated the
market. Some regional authorities have deregulated it, as is the case in Madrid. Below are the average
prices for Spain in 20186.
Type of vehicle Price (€)

Petrol cars and light commercial vehicles (< 3.5t) 34.31
Diesel cars and light commercial vehicles (< 3.5t) 41.01
Industrial vehicles (> 3.5t) 41.53–86.44
Motorbike, motorcycles 19.71
6 FACUA, Estudio comparativo de las tarifas de las ITV en 2020 (October 2020)

215
28
ACEA TAX GUIDE 2021
Sweden
Chapter prepared by
Sofia Linder
[email protected]
BIL Sweden
Swedish Association of Automobile
Manufacturers and Importers
Storgatan 19, P.O. Box 26173
SE — 100 41 Stockholm
T. +46 8 701 41 00
www.bilsweden.se
SWEDEN
1 TAXES AND INCENTIVES ON PURCHASE

1.1 VAT
The VAT rate in Sweden is 25% on most goods, including motor vehicles. The basis of VAT assessment
is the sales price exclusive of VAT. On used cars, VAT is levied at 25% of the value added.
VAT is not deductible when purchasing cars, vans or buses with a gross vehicle weight (GVW) of 3.5t
or less.
For other vehicles, VAT is deductible.
1.2 INCENTIVES ON PURCHASE

Climate bonus incentive
A new bonus-malus system for incentives and taxation of light vehicles (cars and light trucks/buses)
was introduced in Sweden on 1 July 2018. The bonus-malus system is applied on light vehicles that are
newly registered from 1 July 2018. Light vehicles registered before 1 July 2018 or manufactured before
1 January 2018 are not affected by the new system.
When the bonus-malus system was introduced on 1 July 2018 the former so called ‘super green’ car
premium was replaced by a ‘climate bonus’ (Klimatbonus). This means that cars and light trucks/buses
newly registered from 1 July 2018 having CO2 emissions of maximum 60g/km (NEDC value) received
a bonus of up to SEK 60,000 depending on the CO2 emissions. From 1 January 2020, the CO2 limit for
new registrations to receive a climate bonus has been increased to 70g/km measured according to
WLTP. CNG cars and light trucks/buses will receive a bonus of SEK 10,000 independent of the CO2
emissions. For electric vehicles (BEV) with zero CO2 emission, the bonus is SEK 60,000 and plug-in
hybrids (PHEV) with CO2-emission of 70g/km receive a bonus of SEK 10,020. For every gram CO2 above
zero and up to 70g, the bonus is reduced by SEK 714 from the maximum level of SEK 60,000.
From 1 April 2021, some changes will take place in the system: the CO2 limit for obtaining a climate
bonus is lowered to 60g/km. For electric vehicles (BEV) with zero CO2 emissions, the bonus will
increase to SEK 70,000 and will decrease for plug-in hybrids (PHEV). A CO2-emission of 1g/km will
receive a bonus of SEK 44,417 and for every gram of CO2 above 1g/km and up to 60g, the bonus is
reduced by SEK 583 to SEK 10,020 at 60g/km.
Example:
Climate bonus incentive (from 1 April 2021) SEK
0g CO2 70,000
30g CO2 27,510 [45,000 – (30 × 583)]
60g CO2 10,020
CNG cars, light trucks/buses 10,000
The climate bonus must not exceed 25% of the new car price. For companies buying a ‘climate bonus’
vehicle the bonus must not exceed 35% of the difference of the new car price of the bonus vehicle and
the new car price of a comparable petrol or diesel vehicle. The bonus is paid to the first owner six
months after the vehicle has been first registered. The vehicle must not change owner during this first
six months if the bonus shall be paid.
A government proposal from 1 January 2021 foresaw an obligation to repay the climate bonus for the
original buyer if the car is exported within five years. After strong criticism, the proposal is now being
revised and may enter into force in the course of 2021.
1.3 TAX INCENTIVES FOR ELECTRIC VEHICLES AND PLUG-IN HYBRIDS

Reduction in company car taxation: for electric and plug-in hybrid vehicles, the taxable value of the car
for the purposes of calculating the benefit in kind of a company car under personal income tax is
reduced. The benefit value is reduced to the benefit value of a comparable petrol or diesel car.

217
SWEDEN
Climate bonus for new cars: See 1.2 Climate bonus incentive.
Premium for electric buses and trucks: Public transportation authorities buying new electric buses can
receive a premium of maximum 10% of the purchase price of the electric bus. The premium must not
be higher than the difference in price of the electric bus and that of the corresponding diesel bus. Plug-
in hybrid buses receive half of the premium amount.
On 1 September 2020, a new climate premium was introduced for new electric trucks and other
environmental trucks as well as electric work machines (purchase of heavy trucks fully powered by
electricity, gas or bioethanol, as well as electric tractors). The premium is set at 20% of the purchase
price, but no more than 40% of the additional cost in relation to a comparable conventional truck.
2.1 ROAD TAX
The amount of annual road tax depends on:
• the service weight and fuel used for passenger cars with vehicle year1 2005 or later. For cars with
vehicle year 2006 or later, the tax is CO2-related (see below);
• GVW, number of axles, fuel used and fulfilment of exhaust emission requirements (hybrid electric
buses) for trucks and buses. Since 1 January 2011, newly registered light trucks/buses have
attracted a CO2-related annual road tax calculated in the same way as for passenger cars.
Annual road tax for passenger cars with vehicle year 2005 or older
Service weight (kg) Petrol tax (SEK) Diesel tax (SEK)
≤ 900 913.00 2,298.00
901–1,000 1,129.00 2,863.00
Excess per 100 + 214.00 + 564.00
Annual road tax for passenger cars with vehicle year 2006 or later newly registered up to 30 June
2018
A CO2-related annual road tax is payable on passenger cars with vehicle year 2006 or later. The formula
for the CO2-related tax for new registrations up to 30 June 2018 is:
SEK 360 + SEK 22 for every gram of CO2 above 111g
For diesel cars, this sum is multiplied by 2.37. For diesel cars newly registered from 1 January 2008
there is an additional tax of SEK 250 and for diesel cars registered before 1 January 2008 there is an
additional tax of SEK 500. For cars equipped with technology for running on an alternative fuel (E85
(ethanol blend), ethanol, methanol, producer gas, natural gas or biogas) the tax is SEK 11 (instead of
SEK 22) for every gram above 111g.
Examples:
• Petrol-fuelled car with CO2 emissions of 200g/km:
SEK 360 + SEK 22 × 89 = SEK 2,318 in annual road tax
• Diesel-fuelled car with CO2 emissions of 150g/km newly registered from 1 January 2008:
2.37 × (SEK 360 + SEK 22 × 39) + SEK 250 = SEK 3,137 in annual road tax
• E85-fuelled car with CO2 emissions of 200g/km:
SEK 360 + SEK 11 × 89 = SEK 1,339 in annual road tax
1 Vehicle year is defined by the model year or year of manufacture, or if this information is not available, by the year of car first
registration. If a car is from a year earlier than 2006, but meets the requirements for environmental class 2005, or is electric or
hybrid, it also follows the CO2-related annual road tax.

218
SWEDEN
The exemption for green cars and light truck/buses from paying annual road tax for five years was
abolished for new registrations from 1 July 2018, in connection with the introduction of the bonus-
malus system. For new registrations of cars and light trucks/buses up to and including 30 June 2018
the tax exemption will still be valid for those vehicles.
Bonus-malus system from 1 July 2018 - annual road tax (malus)
The bonus-malus system introduced 1 July 2018 implies that new cars and light trucks/buses newly
registered from 1 July 2018 will have a higher annual road tax (malus) the first three years and from
year four the tax is reduced back to the “normal” level that was valid before the bonus-malus system
was introduced. For diesel vehicles the tax from year four is also reduced but is somewhat higher than
the level before the bonus-malus system was introduced. The annual road tax according to the new
bonus-malus system is based on the CO2-emission of the vehicle. The CO2-value to be used when
calculating the annual road tax according to the bonus-malus system was up to the end of 2019 the
NEDC-value and the adjusted NEDC-value when WLTP-values are available. For new registrations from
2020 the WLTP value is used. If the WLTP value is lower than the NEDC-value, the NEDC value shall be
used also from 2020 as the tax law says that the highest value shall be used from 2020. Cars and light
trucks/buses newly registered up to 30 June 2018, which are not included in the bonus-malus system,
keep the same annual road tax.
There will be some changes in the bonus-malus system from 1 April 2021: the malus will increase due
to lower CO2-level in the formula and a higher tax/price for every gram above the levels.
Annual road tax on cars and light trucks/buses newly registered from 1 July 2018 until 31 March 2021
and the changes from 1 April 2021
Petrol cars and light trucks/buses
• First three years
SEK 360 + SEK 82 for every gram CO2 above 95g up to 140g + SEK 107 for every g CO2 above 140g
From 1 April 2021:
• From year four and onwards
SEK 360 + SEK 22 for every gram CO2 above 111g
Diesel cars and light trucks/buses
+ 13.52 × the CO2 value of the vehicle + SEK 250
From 1 April 2021:
+ 13.52 × the CO2 value of the vehicle + SEK 250
SEK 360 + SEK 22 for every gram CO2 above 111g + 13.52 × the CO2 value of the vehicle + SEK 250
CNG/Ethanol cars and light trucks/buses

Annual road tax for commercial vehicles

On 1 January 2011, the annual road tax on heavy commercial vehicles was lowered to the EU minimum
level.
Annual road tax for commercial vehicles (January 2021) is based on GVW, fuel and number of axles.

219
SWEDEN
Some examples:
SEK/year
Bus, diesel, 3t 5,437.00
Bus, diesel 3 axles, 25t 16,457.00
Truck, diesel, 3t 5,437.00
Truck (no traction device), diesel, 3 axles, 25t 3,525.00(b)
Truck for semi-trailer, 3 or more axles, 25t(a) 9,491.00(b)
Trailer for diesel truck, 3 or more axles, 30t 10,405.00
(a)Annual road tax is levied only on the truck, not on the semi-trailer.
(b)For a truck that also pays a road user fee for heavy vehicles. If the road user fee is not paid, the annual road tax is
correspondingly higher.
The road user fee for 2021 is:
• SEK 7,747─14,534 (depending on environmental performance) for heavy vehicles with up to 3 axles;
• SEK 12,912─24,368 for vehicles with four axles or more.
On 1 January 2011, a CO2-related annual road tax (calculated in the same way as on cars) was
introduced for light trucks/buses weighing up to 3.5t and newly registered from 1 January 2011. Light
trucks registered before 1 January 2011 still pay the weight-related annual road tax. The bonus-malus
system also includes light trucks/buses which means that the annual road tax for newly registered light
trucks/buses from 1 July 2018 was changed in the same way as for cars (see information above). The
five-year exemption from paying annual road tax for green light trucks/buses was abolished also for
light trucks/buses newly registered from 1 July 2018 when the new bonus-malus was introduced.
There is a tax on accident insurance premiums. The tax is 32% of the premium. It is included in the
premium paid and transferred to the state by the insurance companies.
From 1 January 2010, heavy hybrid electric buses (over 3.5t in weight) pay an annual road tax of
SEK 984.
2.2 ROAD TRAFFIC REGISTER FEE

In connection with paying annual road tax, a road traffic register fee of SEK 65 per vehicle is payable.
3 TAXES ON MOTORING
3.1 FUEL TAXES
From January 2021, the fuel tax (excluding VAT) was increased by SEK 0.05/l on petrol and by
SEK 0.03/l on diesel. The new rates are set out below. Including VAT, the tax on petrol was increased
by SEK 0.06/l and on diesel by SEK 0.04/l.
From January 2016, the tax on petrol and diesel is automatically adjusted every year by consumer price
index plus 2 percentage points. The index adjustment was made only by consumer price index from 1
July 2019 to 31 December 2019. From 1 January 2020 the taxes were once again adjusted by consumer
price index plus 2 percentage points. In 2021, GDP indexation will be paused again. The reason is that
the Green House Gas Quotas are proposed to be increased on 1 July 2021 and will increase the price
for the consumer.
Petrol (SEK/l) Diesel (SEK/l)
1 January 2021 1 January 2021
Unleaded 95 Environmental class 1
Environmental class 1
Energy tax 4.13 2.48
Carbon dioxide tax 2.61 2.26
Total taxes (excl. VAT) 6.74 4.74
Cost of product 4.65 6.79
VAT 25% 2.85 2.88
Price at pump 14.24 14.41

220
SWEDEN
On 100% FAME2 (B100) there is no carbon dioxide tax or energy tax. On natural gas, a reduced carbon
dioxide tax is paid but no energy tax. On biogas, no energy tax or carbon dioxide tax is paid.
From 1 July 2018 the fuel taxes on petrol and diesel was reduced in connection with the introduction
of a so-called Green House Gas Quota (Reduktionsplikt) for fuel. This system means that the
low-blending of biofuel in petrol and diesel is fully taxed.
The 1 July 2021, the Green House Gas Quota will be increased, from the current 4.2% to 6% for petrol
and from 21% to 26% for diesel. Thereafter, the reduction levels are expected to increase linearly to 28%
for petrol and 66% for diesel in 2030.
3.2 OTHER CHARGES

An exhaust emission inspection fee of SEK 40 is payable on every new car and commercial vehicle
registered.
A congestion tax is payable in Stockholm, and from 2013 also in Gothenburg. The maximum fee per
vehicle is SEK 135 per day in Stockholm. In Gothenburg the maximum fee is SEK 60 per day.

The private use of a company car is regarded as a benefit in kind taxable under personal income tax.
There is a sharp government proposal for increased benefit values from 1 July 2021. Firstly we present
the current rules and then the proposed changes.
The value to be regarded as personal income is calculated as the sum of:
1. 31.7% of the so-called base price amount. From 1 July 2018, 29% of the base price amount for
bonus-malus cars;
2. 75% of the government interest rate multiplied with the price of the car when new;
3. 9% of the new car price up to 7.5 times the base price amount and 20% of the price over 7.5
times the base price amount;
4. the vehicle tax.
From 1 July 2018, cars belonging to the bonus-malus system pay benefit value for the actual annual
road tax. As a compensation the bonus-malus cars pay 29% (instead of 31.7%) of the base price
amount.
From 1 January 2018, the employee having a company car for private use has to pay a separate benefit
value related to the value (related to the private trips including commuting to and from work) of
congestion tax (Stockholm and Gothenburg) as well as road, bridge and ferry charges.
The taxable amount is calculated as follows: 29% of the base price amount (SEK 47,600 in 2021), plus
75% of the government loan interest rate at the end of November the year before the income year
multiplied by the price of the car when new, plus 9% of the price of the car when new. The government
loan interest rate was -0.10% at the end of November 2020, but the interest rate to be used in the benefit
value calculations shall not be lower than 0.5%. For a car with a price when new of maximum 7.5 times
the base price amount (ie SEK 357,000), the price-related amount is calculated as 9% of the new car
price. If the price of the car when new is over SEK 357,000, the price-related amount is calculated as 9%
of SEK 357,000 plus 20% of the price over SEK 357,000.
2 Fatty Acid Methyl Esters (biodiesel)

221
SWEDEN
The government will introduce a sharp proposal from 1 July 2021. Two parts of the calculation are
proposed to be changed, points 2 and 3 on the previous page:
• 70% of the government interest rate + 1 percentage point (=0.0135) multiplied with the new price
of the car
• Instead of two percentages, a general one of 13% of the new car price is proposed.
The taxable amount is calculated as follows: 29% of the base price amount (SEK 47,600 in 2021), plus
70% of the government loan interest rate + 1 percentage point (=0,0135) multiplied by the price of the
car when new, plus 13% of the price of the car when new, plus vehicle tax
As mentioned above, bonus-malus cars (new registrations from 1 July 2018) pay benefit value for the
actual annual road tax. As a compensation the bonus malus cars pay 29% (instead of 31.7%) of the
base price amount.
There is a tax reduction for some green cars: a permanent reduction of the benefit value to the benefit
value of a comparable petrol or diesel car.
For electric cars and plug-in hybrids3 as well as for cars driven by CNG, the value for personal income
taxation of 40% (to a maximum of SEK 10,000) compared with the taxation value of the corresponding
or a comparable car driven by petrol or diesel was abolished in 2021.
For electric hybrid cars, the time-limited reduction of the benefit value by 40% (to a maximum of
SEK 16,000) was abolished from 2012. However, the permanent reduction of the benefit value to the
benefit value of a comparable petrol or diesel car is still valid.
For cars driven by alcohol (ethanol), the time-limited reduction of the benefit value by 20% (to a
maximum of SEK 8,000) was abolished since 2012. However, the permanent reduction of the benefit
value to the benefit value of a comparable petrol or diesel car is still valid.
For cars driven by LPG, rape oil or other environmentally adjusted fuel, the benefit value is the same as
for a comparable petrol or diesel car.
If the employer pays for all the fuel, the employee must treat 120% of the value of the fuel used for
private driving as personal income. If the employee has a driving distance for business purposes of
more than 30,000km per year the benefit value is reduced by 25%.
3 Cars equipped with the technology to run on electricity that is supplied by recharging from an external energy source

222
ACEA TAX GUIDE 2021
EFTA countries
Iceland 224
Norway 227
Switzerland 231
29
ACEA TAX GUIDE 2021
Iceland
Chapter prepared by
Jóhannes Jóhannesson
[email protected]
BILGREINASAMBANDID
The Icelandic Federation
for Auto Trades and Repairs
Borgartúni 35
IS — 105 Reykjavik
T. +354 568 15 50
www.bgs.is
ICELAND
1.1 COMMODITY TAX

Passenger cars are taxed according to their CO2 emissions:
Tax (%) CO2 emissions (g/km) Condition
0.37/g > 74 if the emissions were recorded according to the European Driving Cycle
(NEDC) only
0.31/g > 90 if the emissions were recorded according to the Worldwide Harmonised
Light Vehicle Test Procedure (WLTP) only
0.34/g > 81 if the emissions were recorded according to both the European Driving
Cycle (NEDC) and the Worldwide Harmonised Light Vehicle Test
Procedure (WLTP)
The excise duties applied should never exceed 65% of the customs value of the vehicle. Special reductions
apply to taxis and vehicles equipped for driving lessons purposes and the excise duties applied to them should
not exceed 30% of customs value.
Trucks are taxed according to gross vehicle weight (GVW):
> 5,000kg in GVW 0%
Buses are taxed according to the number of passengers they are allowed to carry:
30% (reduction to 5% for licensed

< 10 passengers < 5,000kg GVW
buses)
> 10 passengers > 5,000kg GVW 0%
The basis of the assessment is the customs price (± cost, insurance and freight (CIF) price).
1.2 VAT
VAT is in general charged at 24% on all motor vehicles, except for the following categories:
• For full electric vehicles, no VAT is charged on the retail price up to ISK 6,500,000; full VAT is
charged on any amount above that.
• On plug-in hybrid vehicles, no VAT is charged on the retail price up to ISK 4,000,000; full VAT is
charged on any amount above that.
• On plug-in hybrid vehicles, VAT is charged if emissions exceed 50g/km.
• No VAT is charged on buses that run solely on natural gases or hydrogen.

The registration fee for all new vehicles below 5,000kg in GVW is ISK 9,270.
The registration fee for all new vehicles exceeding 5,000kg in GVW is ISK 12,080.

225
ICELAND
1.4 TAXES ON OWNERSHIP

The automobile charge for each charging period is based on the vehicle’s recorded emissions of CO2.
Recorded emissions are measured in grams per kilometre.
The automobile charge for each charging period for a vehicle with an unladen weight of 3,500kg or less is ISK
6,380 for the first 121g/km of the automobile´s recorded emissions and ISK 154 for each gram per kilometre
of recorded emissions beyond that, if the emissions were recorded only according to NEDC. If the emissions
were recorded according to both NEDC and WLTP, the charge for each charging period for a vehicle is ISK
6,380 for the first 133g/km of the automobile´s recorded emissions and ISK 139 for each gram per kilometre
recorded emissions beyond that. If the recorded emissions were recorded according to WLTP only, the charge
for each charging period for a vehicle is ISK 6,380 for the first 146g/km of the automobile´s recorded emissions
and ISK 127 for each gram per kilometre recorded emissions beyond that.
When a vehicle’s recorded CO2 emissions are not available, the emissions of the vehicle in question are
determined to be 0.12g of CO2 for each kilogram of the vehicle’s registered unladen weight, in addition to 50g
of CO2.
The automobile charge for a vehicle with an unladen weight of 3,500kg or greater is ISK 59,785 for each
charging period in addition to ISK 2.55 for each kilogram of the vehicle’s registered unladen weight beyond
3,500kg.
The automobile charge for a vehicle with an unladen weight greater than 3,500kg unladen weight will not,
however, exceed ISK 94,095 for any charging period.
2 TAXES ON MOTORING
Fuel taxes (ISK/l, January 2021)
Petrol Diesel
Petrol Tax 47.50 0.00
CO2 Tax 10.25 11.75
Oil Tax 0.00 66.00
Total taxes (excl. VAT) 57.75 77.75
Import Duty 29.45 0.00
Cost of product 85.53 90.89
VAT 24% 41.46 40.47
Price at pump 214.19 209.11
VAT on fuel is charged at 24%.

226
30
ACEA TAX GUIDE 2021
Norway
Chapter prepared by
Tore Lillemork
[email protected]
BIL
Automobile Importers’ Association of Norway
Ökernveien 99
NO — 0579 Oslo
T. +47 22 64 64 55
M. +47 900 842 93
www.bilimportorene.no
N O R W AY
1.1 IMPORT TAX

For passenger cars in Norway, the rates for 2021 are as follows:
Weight1 tax
NOK 0.00/kg for the first 500kg of weight

NOK 26.81/kg for the following 700kg
NOK 242.81/kg for the remaining weight
CO2 tax
* NOK -965.57 per g/km below 50g/km of CO2 emissions
* NOK -820.70 per g/km below 87g/km (including the first 50g/km of CO2 emissions)
NOK 0.00 per g/km for the first 87g/km of CO2 emissions
NOK 985.23 per g/km for the following 31g/km of CO2 emissions
NOK 1,104.05 per g/km for the following 37g/km of CO2 emissions
NOK 2,352.10 per g/km for the following 70g/km of CO2 emissions
NOK 3,752.05 per g/km for the remaining CO2 emissions
* Only for cars with total CO2 emissions below 50g/87g
NOx tax
NOK 77.14 per g/km of nitrogen oxide emissions
Cars running on E85 ethanol fuel receive a tax reduction of NOK 10,000.
For plug-in hybrids, the maximum reduction is 23% of the weight tax, but to achieve full reduction, the
electrical range must be at least 50km (WLTP). Vehicles with shorter electrical range than 50km get a
lower reduction (ie the type approved range divided by 50).
For purely electric cars, including fuel-cell cars, there is no import tax.
For imported used motor vehicles, the taxable value is reduced according to the age of the vehicles as
follows:
1 Weight of the vehicle when ready for use, ie with all equipment installed and fluid reservoirs filled with oil, water and fuel

228
N O R W AY
Over 1 month: 2% Over 2 years: 30%

Over 2 months: 4% Over 2 years and 6 months: 33%
Over 3 months: 6% Over 3 years: 36%
Over 4 months: 8% Over 3 years and 6 months: 39%
Over 1 year: 17% Over 11 years: 70%
Over 1 year and 2 months: 19% Over 12 years: 73%
Over 1 year and 8 months: 25% 15-29 years: 80%
Over 1 year and 10 months: 27% 30 years or over: NOK 3,447.00
A ‘used motor vehicle’ is a vehicle that was registered at the time of customs clearance. The age of the
vehicle must be proven by official documents stating the date of first registration abroad.
1.2 VAT
VAT is levied on all motor vehicles at a rate of 25% of the amount comprising customs value and
customs duty (if any). This does not apply to purely electric cars, including fuel-cell cars.
1.3 SPECIAL TAX

1.3.1 New vans class 1
Same taxes as passenger cars.
1.3.2 New vans class 2
For a van to be defined as class 2, it must have room for a box with the following dimensions:
• Length: 140cm
• Height: 105cm
• Width: 90cm
CO2 tax for vans class 2
NOK 635.07 per g/km for the remaining CO2 emissions
Class 2 vans attract 20% of the weight tax for similar passenger cars, except for NOx tax, which is
charged at 75% of the usual rate, and CO2 tax, which varies as shown above.
1.3.3 New minibuses
New minibuses of less than 6m length and with not more than 17 seats where at least 10 seats are
mounted in the direction of traffic are taxed at 40% of the weight tax (similarly to passenger cars), 0%
for NOx tax.

229
N O R W AY
CO2 tax for new minibuses

NOK 940.84 per g/km for the remaining CO2 emissions
For new trucks, buses or vans with an extra seat, exceeding 7.5t in total weight, there are no special
taxes.

230
31
ACEA TAX GUIDE 2021
Switzerland
Chapter prepared by
Luigi Cescato
[email protected]
AUTO-SUISSE/AUTO-SCHWEIZ
Automobile Association of Swiss Importers
Wölflistrasse 5
CH — 3006 Bern
T. +41 31 306 65 65
www.auto.suiss
SWITZERLAND
1.1 CUSTOMS DUTIES

For imports from EU countries, no customs duties are due. However, a car tax amounting to 4% of the
value of the car (as invoiced to the importer) is levied at customs.
1.2 VAT
All vehicles are subject to VAT at the rate of 7.7%.
Registration taxes are levied by the cantons. They may amount to a maximum of CHF 250.
Motor vehicle tax is an annual tax levied by the cantons.
It is based on:
• fiscal horsepower (hp);

• cylinder capacity (cc);
• vehicle gross weight (GVW);
• horsepower in kilowatts (kW); or
• a combination of two of the elements listed above.
Several cantons have reduced taxes for electric cars and hybrids, and some have also reduced them for
cars fuelled by compressed natural gas.
3 TAXES ON MOTORING
Fuel taxes (CHF/l) (as of January 2021)
Unleaded 95 Diesel
Fuel price plus distribution costs 0.623 0.669
Tax 0.453 0.4811
Tax extra charge 0.3152 0.3146
VAT 7.7% 0.1074 0.1113
Import rate 0.003 0.003

232
ACEA TAX GUIDE 2021
Other countries
Brazil 234
China 236
India 257
Japan 297
Russia 316
South Korea 325
Turkey 329
United Kingdom 336
United States 344
32
ACEA TAX GUIDE 2021
Brazil
Chapter prepared by
Eduardo Lopez
[email protected]
ANFAVEA
Brazilian National Association
of Automobile Manufacturers
Avenida Indianapolis 496
BR — 04062-900 São Paulo
T. +55 11 21 93 78 00
www.anfavea.com.br
BRAZIL
The tables below provide an overview of the taxes that are due upon the acquisition of a motor vehicle
in Brazil.
Taxes (BRL) Passenger cars

≤ 1,000cc 1,001-2,000cc > 2,000cc
Petrol Ethanol/Flex Fuel Petrol Ethanol/Flex
Fuel
IPI1 7.00 13.00 11.00 25.00 18.00
ICMS2 12.00 12.00 12.00 12.00 12.00
PIS3/Cofins4 11.60 11.60 11.60 11.60 11.60
% of price 27.10 30.40 29.20 36.40 33.10
Taxes (BRL) Light Trucks Buses Wheeled

Commercial Trucks Trucks-Tractors Tractors
Vehicles
IPI 8.00 0.00 0.00 0.00 0.00
ICMS 12.00 12.00 12.00 12.00 7.00
PIS/Cofins 11.60 8.10 6.02 6.02 6.02
% of price 27.30 18.70 16.90 16.90 12.00
1 Industrial Products Tax (Imposto sobre Produtos Industrializados)

2 Tax on the Circulation of Products and Services (Imposto sobre Operações Relativas à Circulação de Mercadorias e Serviços de
Transporte Interestadual de Intermunicipal e de Comunicações)
3 Contribution to the Social Integration Programme (Contribuição para os Programas de Integração Social)
4 Social Security Financing Contribution (Contribuição para Financiamento da Seguridade Social)

235
33
ACEA TAX GUIDE 2021
China
Chapter prepared by
Dominik Declercq
[email protected]
ACEA Beijing Representative Office

C-402 Lufthansa Center
50, Liangmaqiao Road
Chaoyang District
CN — Beijing 100125
T. +86 10 6463 40 55
www.acea.be
CHINA
This document summarises the main tax/charge categories pertinent to motor vehicles in China, as
well as the corresponding tax rates, calculation methods of payable tax amount, and billing criteria (for
charges). Based on taxpayer type, these vehicle-related taxes/charges are grouped into three primary
categories as follows:
1. Taxes to be paid by the vehicle manufacturer/importer/marketer (as taxpayer), including:
• Import tariff
• Consumption tax
• Value added tax (VAT)
Note: Unlike the situation in the EU, consumers in China do not pay VAT directly – although the VAT
amount, as a part of the vehicle’s price, is eventually paid by the consumer who purchases the vehicle
– since it is collected during the vehicle manufacturing, importing and marketing processes.
Other taxes payable by the vehicle manufacturer, importer or marketer that have no direct relationship
to the vehicle product (business tax, enterprise income tax) fall outside the scope of this document.
2. Taxes/charges to be paid by the vehicle owner/user (as taxpayer)
Based on their nature, these taxes and charges are classified as follows:
• Taxes on acquisition: taxes/charges paid by the vehicle owner/user once only, upon
vehicle purchase or prior to the start of use of the vehicle
• Taxes on ownership: taxes/charges paid annually, regardless of how the vehicle is used
• Taxes on motoring: taxes/charges on fuels or use of the vehicle
Note: The amounts of all the taxes and charges are expressed in RMB (yuan).
3. Incentives for energy-saving and new-energy vehicles (NEVs)

237
CHINA
1 TAXES TO BE PAID BY THE VEHICLE MANUFACTURER/IMPORTER
(AS TAXPAYER)
IMPORT TARIFF
For vehicles imported into China, the consignee should pay the appropriate duty to customs.
Tariff amount and rate

The tariff is fixed at 15% for regular automobiles.
CONSUMPTION TAX
As consumer goods, vehicles are subject to the consumption tax upon manufacture, subcontracting
for processing, or importation.
Collection criteria for consumption tax
In the case of a vehicle manufactured by a taxpayer, the tax shall be paid by the taxpayer upon the sale
of the vehicle.
In the case of a vehicle product subcontracted for processing, the tax shall be collected and paid by the
subcontractor upon delivery to the contractor, except where the subcontract is assumed by an
individual.
Imported vehicles are subject to the tax upon customs declaration for import.
Consumption tax rate and calculation of payable tax amount
The consumption tax is based on the price of the vehicle.
a) In the case of a taxable vehicle product manufactured in China, the payable amount of
consumption tax shall be calculated as follows:
Payable tax amount = sales amount × tax rate
Note: the sales amount is exclusive of VAT.
b) In the case of a taxable vehicle product subcontracted for processing, the payable amount of
consumption tax shall be calculated based on the sales price of the same kind of vehicle
product if sold on by the subcontractor; failing that, the following formula will apply:
Payable tax amount = (material cost + processing fee) + (1 – tax rate) × tax rate
c) In the case of an imported vehicle product, the payable amount of consumption tax shall be
calculated as follows:
Payable tax amount = (customs dutiable price + customs duty) + (1 – tax rate) × tax rate

238
CHINA
Extra consumption tax on an ultra-luxury small motor vehicle
As of 1 December 2016, an extra consumption tax of 10% is imposed on ultra-luxury small motor
vehicles, namely passenger cars and light- or medium-duty commercial buses with a VAT-exclusive
retail price of more than RMB 1.3 million. The extra ultra-luxury small motor vehicle consumption tax
will be paid by the retailer based on previous consumption tax paid during the production and import
phase.
Payable tax amount = retail sales amount (VAT-exclusive) × tax rate
For domestic automobile manufacturers who sell ultra-luxury small motor vehicles directly to the
consumer, the consumption tax rate is calculated as the sum of the tax rate upon production and the
tax rate upon retail. The formula for the consumption tax payable is below:
Payable tax amount = VAT-exclusive sales amount × (tax rate upon production + tax rate upon
retail)
Consumption tax rates for motor vehicle products
Taxable item Tax rate (%)

Production/Imports Retail
Small motor vehicles
1. Passenger cars
a) with a cylinder capacity (ie displacement volume) not 1
exceeding 1.0l
b) with a cylinder capacity (ie displacement volume) 3
exceeding 1.0l but not exceeding 1.5l
c) with a cylinder capacity (ie displacement volume) 5
d) with a cylinder capacity (ie displacement volume) 9
e) with a cylinder capacity (ie displacement volume) 12
f) with a cylinder capacity (ie displacement volume) 25
g) with a cylinder capacity (ie displacement volume) 40
exceeding 4.0l
2. Light and medium-duty commercial passenger vehicles 5
3. Ultra-luxury small motor vehicle As for passenger 10
cars and light- and
medium-duty
commercial
passenger vehicles

239
CHINA
VAT
All individuals/entities engaged in the sale of motor vehicles, the provision of processing, repairs and
replacement services, and the import of motor vehicles must pay VAT.
VAT rate
The VAT rate varies for different sectors. For a manufacturing industry like the automotive sector, VAT
rate is 16%.
To boost the country’s economy, VAT rates have been reduced since 1 April 2019. The 16% VAT rate
which applies to the manufacturing sector was lowered to 13%, and the 10% rate which applies to the
construction and transport sectors was lowered to 9%.
EXTRA TAXES/CHARGES RELATING TO VAT AND CONSUMPTION TAX
Urban maintenance and construction tax and educational surcharge
Entities/individuals subject to VAT, consumption tax and business tax are required to pay the extra
urban maintenance and construction tax and educational surcharge.
Rates of the urban maintenance and construction tax and the educational surcharge
The urban maintenance and construction tax rate vary by region, and is set at either 7%, 5% or 1%. The
amount to be paid is calculated as follows:
Urban maintenance and construction tax = (sum of actually paid VAT, consumption tax and business
tax) ´ applicable tax rate
The educational surcharge rate is 3%. The amount to be paid is calculated as follows:
Educational surcharge = (sum of actually paid VAT, consumption tax and business tax) ´ 3%
For the time being, foreign investment enterprises and foreign enterprises are exempt from both the
urban maintenance and construction tax and the educational surcharge.
2 TAXES AND CHARGES TO BE PAID BY THE VEHICLE OWNER/USER
(AS TAXPAYER)
TAXES ON ACQUISITION
Vehicle purchase tax
The law of the People’s Republic of China on Vehicle Purchase Tax entered into force on 1 July 2019.
Scope
All organisations and individuals who purchase a motor vehicle, trolley car, trailer or motorcycle whose
displacement exceeds 150ml (hereunder referred to as taxable vehicle) on the territory of the People’s
Republic of China are vehicle purchase taxpayers and shall pay the vehicle purchase tax accordingly.

240
CHINA
Calculation of payable tax amount

The vehicle purchase tax implements lump sum imposition. For the purchase of a vehicle on which
vehicle purchase tax has already been imposed, no more vehicle purchase tax will be imposed.
The rate of vehicle purchase tax is 10%.
The vehicle purchase tax amount is calculated by multiplying the taxable value of taxable vehicle by tax
rate.
Taxable value of taxable vehicle shall be determined as per the following stipulations:
a) Taxable value of taxable vehicle purchased by taxpayer for private use shall be the total
amount actually paid by the taxpayer to the seller, excluding VAT.
b) Taxable value of taxable vehicle imported by taxpayer for private use shall be customs duty
paying value plus customs duty and consumption tax.
c) Taxable value of taxable vehicle produced by taxpayer itself for private use shall be
determined as per the sales price of taxable vehicle of the same category produced by
taxpayer, excluding VAT.
d) Taxable value of taxable vehicle obtained by taxpayer through acceptance of donation, award
or other methods for private use shall be determined as per the price indicated on relevant
evidence for purchase of the taxable vehicle, excluding VAT.
The following vehicles are exempt from vehicle purchase tax:

1) Vehicles used by foreign embassies and consulates in China and international organisations’
institutions stationed in China, which shall be granted exemption from tax in accordance with
the stipulations of law and vehicles used by relevant personnel for private purposes
2) Vehicles listed in the equipment ordering plan by the Chinese People’s Liberation Army and
the Chinese People’s Armed Police Forces
3) National comprehensive fire protection rescue vehicles granted special license plates for
emergency rescue
4) Non-transport special operation vehicles configured with fixed device
5) Public bus and electric bus purchased by urban public bus enterprises.
In accordance with the demand of development of national economy and society, the State Council
may specify the circumstances for the reduction of vehicle purchase tax or exemption from vehicle
purchase tax, and report to the National People’s Congress (NPC) Standing Committee for registration.
Purchase tax exemption for New-Energy Vehicles (NEVs)

From 1 January 2018 to 31 December 2022, NEVs are exempt from vehicle purchase tax.
The NEVs to be exempted from vehicle purchase tax have to be listed in the ‘Catalogue of New-Energy
Vehicle Models Exempted from Vehicle Purchase Tax’, hereafter referred to as ‘the Catalogue’.
NEVs listed in the Catalogue must comply with all the following conditions:
1. Battery electric vehicle, plug-in (including extended-range) hybrid electric vehicle and fuel-cell
electric vehicle that are allowed for sales in territory of China
2. New energy vehicle manufacturer or import new energy vehicle dealer (hereunder abbreviated
as enterprise) shall meet the relevant requirements on product quality assurance, product
conformity, after-sales service, safety monitoring, traction battery recycling and other aspects
3. Shall meet the new energy vehicle technical requirements as below:

241
CHINA
a) Requirements on battery electric range of new energy vehicle

Category Passenger car Bus Goods Special Testing method
(km) (km) vehicle vehicle
(km) (km)
Battery electric ≥ 100 ≥ 200 ≥ 80 ≥ 80 Adopt operating mode method for
vehicle (BEV) categories M1 and N1 and 40km/h
constant speed method for others for the
time being
Plug-in hybrid ≥ 50 (operating ≥ 50 ≥ 50 ≥ 50 Adopt operating mode method or 60km/h
electric vehicle mode method) constant speed method for categories M1
(PHEV) ≥ 70 (constant and N1 and 40km/h constant speed
including speed method) method for others for the time being
extended range
Fuel cell electric ≥ 300 ≥ 300 ≥ 300 ≥ 300 Adopt operating mode method for
vehicle (FCEV) categories M1 and N1 and 40km/h
constant speed method for others for the
time being
Notes: No requirements on battery electric range for battery electric buses using ultracapacitor and Lithium Titanium Oxide (LTO)
quick charge. Category M1 includes passenger cars with no more than nine seats including the driver seat. Category N1 included
goods vehicles with a maximum total mass not exceeding 3,500kg by design.
b) Technical requirements for new energy passenger cars

• Maximum thirty-minutes speed of battery electric passenger car shall not be less than 100km/h
• Mass energy density of traction battery system of battery electric passenger car shall not be
less than 95Wh/kg
• For battery electric passenger car products, as per different kerb mass (m) of complete vehicle,
the power consumption (Y) per 100km under driving mode conditions shall meet the following
requirements: when m ≤ 1,000kg, Y ≤ 0.014 × m + 0.5; when 1,000 < m ≤ 1,600kg, Y ≤ 0.012 × m
+ 2.5; when m > 1,600kg, Y ≤ 0.005 × m + 13.7
• For plug-in hybrid electric passenger car of pure electric range less than 80km under driving
mode conditions, the fuel consumption under condition B (excluding fuel consumption
converted from electric power) is less than 70% of corresponding limit in prevailing national
standard on conventional fuel consumption. For plug-in hybrid electric passenger car of pure
electric range more than or equivalent to 80km under driving mode conditions, the power
consumption per 100km under condition A shall meet requirements identical with battery
electric passenger car
c) Technical requirements of new energy buses
• Unit load mass energy consumption (Ekg) shall not be more than 0.24Wh/km per kg
• Energy density of battery system of battery electric bus other than quick charging type shall be
more than 95Wh/kg, quick charge multiplying power of quick charging type of battery electric
bus shall be more than 3C1, and fuel saving rate level of plug-in hybrid electric bus (including
extended range) shall be more than 40%
d) Technical requirements for new energy goods vehicles and special vehicles
• Mass energy density of the installed traction battery system shall not be less than 95Wh/kg
• Unit load mass energy consumption (Ekg) shall not be more than 0.49Wh/km per kg for battery
electric goods vehicle and transport type of special vehicle and power consumption per
t/100km shall not be more than 10kWh for other types of battery electric special vehicle
(according to test mass)
e) Technical requirements for fuel cell electric vehicles
• The rated power of fuel cell system shall not be less than 30% of the rated power of driving
motor and rated power of fuel cell system of passenger car shall not be less than 10kW, and
shall not be less than 30kW for commercial vehicle
1C=Capacity [Ah]/1[ℎ], meaning C is the current based on ampere-hour rating for total discharge in one hour

242
CHINA
Purchase tax relief for trailers

From 1 July 2018 to 30 June 2021, vehicle purchase tax will be levied by half for the purchase of trailers.
Purchase tax exemption for special projects

• New vehicles purchased by the Beijing Organising Committee for the 2022 Olympics and
Paralympics Winter Games are exempt from vehicle purchase tax.
• Mobile medical vehicles purchased by China Women's development foundation for the "Health
Express for Mothers" project are exempt from vehicle purchase tax.
Purchase tax exemption for special purpose vehicles
• From 1 January 2021, operating vehicles with fixed equipment (non-freight carrying only
vehicles) are exempted from purchase tax.
Motor vehicle registration fee
The nationwide unified billing criteria for the production fees for licence plates and driving licences for
motor vehicles are implemented according to law.
Licence plate fees
a) For motor vehicles:

- Reflective licence plate, RMB 100 per pair
- Non-reflective licence plate, RMB 80 per pair
b) For trailers:
- Reflective licence plates, RMB 50 per piece
- Non-reflective licence plates, RMB 30 per piece
c) For tri-wheel vehicles, low-speed goods vehicles and tractors:
d) For motorcycles:
e) Temporary licence plates for motor vehicles: RMB 5 per piece
The above-mentioned fees cover the specific required tightening/sealing devices (showing the code of
the issuance authority) and the mounting of licence plates.
Fees for motor vehicle licences
a) Licence for motor vehicle: RMB 15

b) Temporary licence for motor vehicle: RMB 10
The above-mentioned fees cover the production of the licences themselves, as well as the taking and
lamination of the photo affixed to the licence.
Production fee for registration certificate of a motor vehicle
The charge is RMB 10 per certificate.
TAX ON OWNERSHIP
Vehicle and vessel tax
The Law on Vehicle and Vessel Tax of China entered into force on 1 January 2012.

243
CHINA
Scope
Vehicles and vessels are subject to the vehicle and vessel tax. Vehicles and vessels are:
• motor vehicles and vessels registered with the administrative departments for vehicle and
vessel registration according to the laws;
• motor vehicles and vessels that do not need to be registered with the administrative
departments for vehicle and vessel registration according to the laws and are driven or
operated within the premises of units.
The owners or custodians of vehicles and vessels are the taxpayers of vehicle and vessel tax.
Payable amount of vehicle and vessel tax
The tax amount applicable to vehicles and vessels complies with the Schedule of Taxable Items and
Tax Amounts for Vehicle and Vessel Tax below.
The people's government of each province, autonomous region or municipality directly under the central
government determines the specific tax amounts applicable to vehicles in accordance with the
Schedule of Taxable Items and Tax Amounts for Vehicle and Vessel Tax, and these amounts must
comply with the following principles:
• For passenger vehicles, the tax amounts must increase proportionately as displacement
volume increases, from small to large
• For buses, the tax amounts must increase depending on whether the approved passenger
number is greater than 20 or less than or equal to 20
The specific tax amounts are reported to the State Council for the record.
Schedule of Taxable Items and Tax Amounts for Vehicle and Vessel Tax
Item Unit Annual reference Remarks

tax (RMB)
Passenger vehicle ≤ 1.0 Per vehicle 60–360 Rated capacity ≤ 9
classified by > 1.0 and ≤ 1.6 360–540
engine cylinder > 1.6 and ≤ 2.0 540–660
capacity (exhaust > 2.0 and ≤ 2.5 660–1,200
volume in litre) > 2.5 and ≤ 3.0 1,200–2,400
> 3.0 and ≤ 4.0 2,400–3,600
> 4.0 3,600–5,400
Commercial For passengers Per unit 480–1,440 Rated capacity > 9 people,
vehicle trolley included
For cargos Kerb weight 16–120 Including semi-trailer towing
per tonne vehicle, three-wheeled
vehicles and low-speed trucks,
etc
Trailer Kerb weight Calculated based
per tonne on 50% of truck tax
Other vehicles Special-purpose vehicle 16–120 Excluding tractors

244
CHINA
Wheeled special-purpose Kerb weight 16-120

mechanical vehicle per tonne
Motorcycle Per unit 36-180
Vessel Motor vessel Net tonnage 3-6 Trailers and dumb barges are
calculated based on 50% of
motor vehicle tax
Yacht Body length (m) 600-2,000
Notes:
• Passenger vehicle: a vehicle that is mainly used for carrying passengers and baggage, this being clear from its design and
technical features; the approved number of passengers including the driver must be not more than nine persons
• Commercial vehicle: a vehicle, excluding passenger vehicles, that is used for carrying passengers and cargo, this being clear
from its design and technical features; these vehicles are classified as passenger cars and trucks
• Semi-trailer towing vehicle: a commercial vehicle equipped with a special device for towing semi-trailers
• Three-wheeled vehicle: a truck with maximum designed speed not exceeding 50km/h and which has three wheels
• Low-speed truck: a diesel-powered vehicle the maximum designed speed of which does not exceed 70km/h and which has
four wheels
• Trailer: a kind of non-powered road vehicle which requires to be towed by a car or tractor for normal use
• Special-purpose vehicle: a vehicle that is used for special work, this being clear from its design and technical features
• Wheeled special-purpose mechanical vehicle: a wheeled engineering machinery vehicle with a special structure and
specialised functions, equipped with rubber wheels; it may be self-propelling and its maximum designed speed must be
greater than 20km/h
• Motorcycles: a two or three-wheeled vehicle, regardless of the type of power used, or whether or not the vehicle has an
internal combustion engine, it must have a maximum designed speed greater than 50km/h and a displacement volume
greater than 50ml
Vehicle and vessel tax must be declared and paid once per year. For a vehicle purchased new, the
taxable amount for the year the vehicle was purchased is calculated from the month that tax liability
began on a monthly basis. The taxable amount is the annual taxable amount divided by 12 then
multiplied by the number of taxable months.
Exemptions from vehicle and vessel tax
The following shall be exempted from vehicle and vessel tax:

• Vehicles belonging to the army and armed police
• Police vehicles
• Vehicles/vessels belonging to foreign embassies/consulates in China, offices in China of
international organisations, or their personnel, which are exempted from tax in accordance with the
relevant local laws or the international treaties concluded or joined by China
Incentive for energy-efficient and new-energy vehicles
Energy-efficient vehicles (EEVs) benefit from a 50% reduction on the vehicle and vessel tax, and NEVs
are exempt from vehicle and vessel tax.

245
CHINA
Criteria for EEVs
Criteria for energy-efficient passenger cars

EEVs are petrol- and diesel-powered passenger cars (including non-plug-in hybrid electric passenger
cars, bi-fuel and dual-fuel passenger cars) that are authorised to be sold within the territory of China,
having an engine capacity of or below 1.6l. The combined fuel consumption must comply with the
requirements set out in the table below:
Complete vehicle 2018 2019 2020
kerb mass (CM) Fuel Fuel Fuel Fuel Fuel Fuel
(kg) consumption consumption consumption consumption consumption consumption
(l/100km) (l/100km) (l/100km) (l/100km) (l/100km) (l/100km)
(vehicles (vehicles (vehicles (vehicles (vehicles (vehicles
having having having having having having
≤ 2 rows of ≥ 3 rows of ≤ 2 rows of ≥ 3 rows of ≤ 2 rows of ≥ 3 rows of
seats) seats) seats) seats) seats) seats)
CM ≤ 750 4.4 4.7 4.2 4.6 4.0 4.3
750 < CM ≤ 865 4.6 4.8 4.5 4.7 4.2 4.4
865 < CM ≤ 980 4.7 5.0 4.6 4.8 4.3 4.5
980 < CM ≤ 1,090 5.0 5.2 4.8 5.0 4.5 4.7
1,090 < CM ≤ 1,205 5.2 5.4 5.0 5.2 4.7 4.9
CM > 1,205 5.4 5.4 5.2 5.2 4.9 4.9
Criteria for energy-efficient commercial vehicles

EEVs are natural gas-, petrol- and diesel-powered light and heavy-duty commercial vehicles (including
non-plug-in hybrid electric, bi-fuel and dual-fuel light and heavy-duty commercial vehicles) that are
authorised to be sold within the territory of China.
The combined fuel consumption of petrol- and diesel-powered light and heavy-duty commercial
vehicles must comply with the requirements set out in the table below:

246
CHINA
Criteria for limits on the combined fuel consumption of energy-efficient light-duty commercial vehicle
N1 vehicle unit: l/100km
Complete vehicle kerb mass (CM) (kg) 2018 2019 2020
Petrol Diesel Petrol Diesel Petrol Diesel
CM ≤ 750 5.0 4.5 4.7 4.3 4.5 4.1
750 < CM ≤ 865 5.2 4.7 5.0 4.4 4.7 4.2
865 < CM ≤ 980 5.5 5.0 5.2 4.7 5.0 4.5
980 < CM ≤ 1,090 5.8 5.2 5.5 5.0 5.2 4.7
1,090 < CM ≤ 1,205 6.0 5.5 5.7 5.2 5.4 5.0
1,205 < CM ≤ 1,320 6.4 5.8 6.1 5.5 5.8 5.2
1,320 < CM ≤ 1,430 6.8 6.0 6.4 5.7 6.1 5.4
1,430 < CM ≤ 1,540 7.1 6.3 6.8 6.0 6.4 5.7
1,540 < CM ≤ 1,660 7.5 6.6 7.1 6.2 6.7 5.9
1,660 < CM ≤ 1,770 7.8 6.8 7.4 6.5 7.1 6.2
1,770 < CM ≤ 1,880 8.2 7.1 7.8 6.8 7.4 6.4
1,880 < CM ≤ 2,000 8.6 7.5 8.2 7.1 7.8 6.7
2,000 < CM ≤ 2,110 9.1 7.8 8.6 7.4 8.2 7.1
2,110 < CM ≤ 2,280 9.5 8.2 9.1 7.8 8.6 7.4
2,280 < CM ≤ 2,510 10.0 8.6 9.5 8.1 9.0 7.7
CM > 2,510 10.5 9.0 10.0 8.6 9.5 8.1
M2 vehicle with maximum total design mass less than 3,500kg unit: l/100km
Complete vehicle kerb mass (CM) (kg) 2018 2019 2020

Petrol Diesel Petrol Diesel Petrol Diesel
CM ≤ 750 4.5 4.2 4.3 4.0 4.1 3.8
750 < CM ≤ 865 4.9 4.5 4.6 4.3 4.4 4.1
865 < CM ≤ 980 5.2 4.8 5.0 4.5 4.7 4.3
980 < CM ≤ 1,090 5.6 5.0 5.3 4.8 5.0 4.5
1,090 < CM ≤ 1,205 5.9 5.3 5.6 5.0 5.4 4.8
1,205 < CM ≤ 1,320 6.3 5.6 6.0 5.3 5.7 5.0
1,320 < CM ≤ 1,430 6.7 5.9 6.3 5.6 6.0 5.3
1,430 < CM ≤ 1,540 7.0 6.1 6.7 5.8 6.3 5.5
1,540 < CM ≤ 1,660 7.4 6.4 7.0 6.1 6.7 5.8
1,660 < CM ≤ 1,770 7.7 6.7 7.4 6.3 7.0 6.0
1,770 < CM ≤ 1,880 8.1 6.9 7.7 6.6 7.3 6.3
1,880 < CM ≤ 2,000 8.6 7.2 8.1 6.8 7.7 6.5
2,000 < CM ≤ 2,110 9.0 7.6 8.6 7.2 8.1 6.8
2,110 < CM ≤ 2,280 9.5 7.9 9.0 7.5 8.5 7.1
2,280 < CM ≤ 2,510 9.9 8.3 9.4 7.9 8.9 7.5
CM > 2,510 10.4 8.6 9.8 8.2 9.3 7.8

247
CHINA
Criteria for limits on the combined fuel consumption of energy-efficient goods vehicles unit:
l/100km
Gross vehicle weight (GVW) (kg) 2018 2019 2020
3,500 < GVW ≤ 4,500 11.5a 10.9a 10.4a
4,500 < GVW ≤ 5,500 12.2a 11.6a 11.0a
5,500 < GVW ≤ 7,000 13.8a 13.1a 12.5a
7,000 < GVW ≤ 8,500 16.3a 15.5a 14.7a
8,500 < GVW ≤ 10,500 18.3a 17.4a 16.5a
10,500 < GVW ≤ 12,500 21.3a 20.2a 19.2a
12,500 < GVW ≤ 16,000 24.0 22.8 21.7
16,000 < GVW ≤ 20,000 27.0 25.7 24.4
20,000 < GVW ≤ 25,000 32.5 30.9 29.3
25,000 < GVW ≤ 31,000 37.5 35.6 33.8
GVW > 31,000 38.5 36.6 34.7
(a) For petrol vehicles, the limits are determined as follows: multiply the corresponding limits in the table by 1.2 and round to
the nearest decimal place.
Criteria for limits on the combined fuel consumption of energy-efficient semi-trailer towing vehicles
unit: l/100km
Gross combination vehicle weight (GCW) (kg) 2018 2019 2020
GCW ≤ 18,000 28.0 26.6 25.3
18,000 < GCW ≤ 27,000 30.5 29.0 27.5
27,000 < GCW ≤ 35,000 32.0 30.4 28.9
35,000 < GCW ≤ 40,000 34.0 32.3 30.7
40,000 < GCW ≤ 43,000 35.5 33.7 32.0
43,000 < GCW ≤ 46,000 38.0 36.1 34.3
46,000 < GCW ≤ 49,000 40.0 38.0 36.1
GCW > 49,000 40.5 38.5 36.6
Criteria for limits on the combined fuel consumption of energy-efficient buses unit: l/100km
GVW (kg) 2018 2019 2020
3,500 < GVW ≤ 4,500 10.6a 10.1a 9.6a
4,500 < GVW ≤ 5,500 11.5a 10.9a 10.4a
5,500 < GVW ≤ 7,000 13.3a 12.6a 12.0a
7,000 < GVW ≤ 8,500 14.5 13.8 13.1
8,500 < GVW ≤ 10,500 16.0 15.2 14.4
10,500 < GVW ≤ 12,500 17.7 16.8 16.0
12,500 < GVW ≤ 14,500 19.1 18.1 17.2
14,500 < GVW ≤ 16,500 20.1 19.1 18.1
16,500 < GVW ≤ 18,000 21.3 20.2 19.2
18,000 < GVW ≤ 22,000 22.3 21.2 20.1
22,000 < GVW ≤ 25,000 24.0 22.8 21.7
GVW > 25,000 25.0 23.8 22.6
(a) For petrol vehicles, the limits are determined as follows: multiply the corresponding limits in the table by 1.2 and round to
the nearest decimal place.

248
CHINA
Criteria for limits on the combined fuel consumption of energy-efficient tipper trucks unit: l/100km
GVW (kg) 2018 2019 2020
3,500 < GVW ≤ 4,500 13.0 12.4 11.7
4,500 < GVW ≤ 5,500 13.5 12.8 12.2
5,500 < GVW ≤ 7,000 15.0 14.3 13.5
7,000 < GVW ≤ 8,500 17.5 16.6 15.8
8,500 < GVW ≤ 10,500 19.5 18.5 17.6
10,500 < GVW ≤ 12,500 22.0 20.9 19.9
12,500 < GVW ≤ 16,000 25.0 23.8 22.6
16,000 < GVW ≤ 20,000 29.5 28.0 26.6
20,000 < GVW ≤ 25,000 37.5 35.6 33.8
25,000 < GVW ≤ 31,000 41.0 39.0 37.0
GVW > 31,000 41.5 39.4 37.5
Criteria for limits on the combined fuel consumption of energy-efficient city buses unit: l/100km
GVW (kg) 2018 2019 2020
3,500 < GVW ≤ 4,500 11.5 10.9 10.4
4,500 < GVW ≤ 5,500 13.0 12.4 11.7
5,500 < GVW ≤ 7,000 14.7 14.0 13.3
7,000 < GVW ≤ 8,500 16.7 15.9 15.1
8,500 < GVW ≤ 10,500 19.4 18.4 17.5
10,500 < GVW ≤ 12,500 22.3 21.2 20.1
12,500 < GVW ≤ 14,500 25.5 24.2 23.0
14,500 < GVW ≤ 16,500 28.0 26.6 25.3
16,500 < GVW ≤ 18,000 31.0 29.5 28.0
18,000 < GVW ≤ 22,000 34.5 32.8 31.1
22,000 < GVW ≤ 25,000 38.5 36.6 34.7
GVW > 25,000 41.5 39.4 37.5
Criteria for NEVs
The NEVs exempted from vehicle and vessel tax are battery electric commercial vehicles and plug-in
(including extended range) hybrid and fuel cell commercial vehicles. Battery electric passenger cars
and fuel cell passenger cars fall outside the levying scope of vehicle and vessel tax.
• NEVs exempted from vehicle and vessel tax must be battery electric commercial vehicles and
plug-in (including extended range) hybrid and fuel cell commercial vehicles that are authorised
to be sold within the territory of China.
• Battery electric range must satisfy the criteria set out in the table below:

249
CHINA
Criteria for battery electric range of NEVs (km)

Special-
Passenger Goods
Classification Bus purpose Test methods
car vehicle
vehicle
M1 and N1 to adopt the driving mode
BEV ≥ 200 ≥ 80 ≥ 80 method; others to adopt the constant
speed method (40km/h) for the time being
³ 50
(driving
mode M1 and N1 to adopt the driving mode
PHEV (incl.
method) method or the constant speed method
extended ≥ 50 ≥ 50 ≥ 50
³ 70 (60km/h); others to adopt the constant
range)
(constant speed method (40km/h) for the time being
speed
method)
M1 and N1 to adopt the driving mode
FCEV ≥ 300 ≥ 300 ≥ 300 method; others to adopt the constant
speed method (40km/h) for the time being
Notes: Battery electric fast-charge buses using ultra-capacitors, lithium, titanate, etc, are exempted from the battery electric range
requirements.
Category M1 refers to passenger vehicles having no more than nine seats (including the driver’s seat). Category N1 refers to
goods vehicles having a GVW not exceeding 3,500kg.
Technical criteria for new energy passenger vehicles

Battery electric passenger cars and fuel cell electric passenger cars are not within the scope of the
vehicle and vessel tax. Plug-in hybrid electric vehicles (including extended-range) which are exempted
from this tax shall meet the following requirements:
For plug-in hybrid electric vehicles (including extended-range) with a driving range of less than 80km
under electric working condition, fuel consumption (not including fuel consumption converted from
electric energy) of B status should be less than 70% of the corresponding limit of regular fuel
consumption in national standard.
For plug-in hybrid electric vehicles (including extended-range) with a driving range of 80km or more
under electric working condition, according to different mass kerb (m), power consumption per 100km
of A status (Y) should meet the following requirements:
• if m ≤ 1,000kg, Y ≤ 0.014 × m + 0.5
• if 1,000kg < m ≤ 1,600kg, Y ≤ 0.012 × m + 2.5
• if m > 1,600kg, Y ≤ 0.005 × m + 13.7
Technical criteria for new energy bus
New energy buses exempted from vehicle and vessel taxes should meet the following requirements as
well:
a) Energy consumption per unit load mass (Ekg) is not more than 0.24Wh/km·kg
b) Mass energy density of battery system for non-fast charging battery electric buses is more
than 95Wh/kg, fast charging rate of fast charging battery electric bus should be higher than
that required in 3C, rate of oil saving for plug-in hybrid electric vehicles (including extended
range) is more than 40%
Technical criteria for new energy trucks and special vehicles
New energy trucks and special vehicles exempted from vehicle and vessel taxes should meet the
following requirements as well:
a) Mass energy density of battery system loaded is not less than 95Wh/kg

250
CHINA
b) Energy consumption per unit load mass (Ekg) of battery electric trucks and special vehicles
with transportation purposes is not more than 0.49Wh/km·kg, power consumption per
100km of other types of special battery electric vehicles (as per test mass) does not
exceed 10kWh
Technical criteria for fuel cell commercial vehicles
Fuel cell vehicles exempted from vehicle and vessel tax shall meet the following requirements:
a) The rated power of the fuel cell system is not less than 30% of the rated power of the driving motor
b) The rated power of fuel cell system for the commercial vehicle is not less than 30kW
Periodic safety and technical inspection fee for motor vehicles
Charging criterion for the periodic safety and technical inspection fee for motor vehicles
The charging criterion is determined by the relevant provincial price authority in conjunction with the
fiscal authority.
The upper limits specified by the state are as follows:

• Not exceeding RMB 100 per vehicle for motor vehicles
• Not exceeding RMB 60 per vehicle for three-wheeled vehicles, low-speed goods vehicles,
motorcycles and tractors
When the test agency undertaking the safety and technical inspection has no test equipment and
conducts the inspection artificially, the fee is reduced by half. When a motor vehicle fails the
inspection, the test agency may not charge any fee for the re-inspection.
Safety and technical inspection cycle for motor vehicles
a) Commercial vehicles for passenger transport are to be inspected once per year for the initial
five years after first registration; thereafter, they are to be inspected once every six months.
b) Goods carrying vehicles, as well as non-commercial large and medium-sized vehicles for
passenger transport, are to be inspected once per year for the initial 10 years after first
registration; thereafter, they are to be inspected once every six months.
c) From 1 September 2014, non-commercial small and mini vehicles for passenger transport are
exempt from safety inspection for the initial six years after first registration, provided that the
vehicle is not involved in any casualty-causing traffic accident; when such vehicles are between
7 and 15 years old, they are to be inspected once per year; thereafter, they are to be inspected
once every six months.
Periodic emission testing fee for motor vehicles
The relevant regional competent authority works out the billing criteria for periodic emission testing for
motor vehicles, based on the testing methods and vehicle category.
Annual fee for inspection of the composite performance of commercial vehicles
Road transport vehicles must undergo an annual examination and inspection as set out in the
‘Composite performance requirements and detecting methods for road transport vehicles’ standard.
The annual fee for inspection of the composite performance of commercial vehicles is determined by
the relevant regional competent authority for transportation.

251
CHINA
TAX ON MOTORING
Consumption tax on refined oil products
From 13 January 2015, consumption tax on refined oil products was increased as follows:
• Petrol – RMB 1.52/l
• Diesel – RMB 1.20/l
Motor vehicle traffic accidents liability compulsory insurance (TALCI)
Scope
The owner/custodian of any motor vehicle operating on the roads within the territory of the People’s
Republic of China must, as set out in the provisions of the Law of the People’s Republic of China on
Road Traffic Safety, take out a policy of mandatory liability insurance for traffic accidents of motor
vehicles.
The policy holder must not terminate the contract for the TALCI of the motor vehicle except when the
motor vehicle covered is lost or deregistered, or when discontinued travel has already been applied for.
Calculation of insurance premium
Actual premium of TALCI = base premium of TALCI × (1 + variable ratio A linked to road traffic accidents)
Base premium of TALCI
Calculation of base premium for a one-year policy
For a one-year policy for TALCI of a motor vehicle, the base premium is determined based on the
corresponding amount shown in the ‘Schedule of base premium rates for TALCI of motor vehicles’
below.
Schedule of base premium rates for TALCI of motor vehicles (2021 version)
Vehicle No Vehicle type Premium (RMB)
category
I. Household 1 < 6 seats 950.00
vehicles 2 ≥ 6 seats 1,100.00
II. Non- 3 < 6 seats 1,000.00
commercial 4 6–10 seats 1,130.00
passenger- Owned by enterprise
5 10–20 seats 1,220.00
carrying
vehicles 6 > 20 seats 1,270.00
7 < 6 seats 950.00
8 6–10 seats 1,070.00
Owned by institution
9 10–20 seats 1,140.00
10 > 20 seats 1,320.00
III. 11 < 6 seats 1,800.00
Commercial 12 6–10 seats 2,360.00
passenger-
13 Taxi/rental vehicle 10–20 seats 2,400.00
carrying
vehicles 14 20–36 seats 2,560.00
15 > 36 seats 3,530.00
16 6–10 seats 2,250.00
17 10–20 seats 2,520.00
City bus
18 20–36 seats 3,020.00
19 > 36 seats 3,140.00

252
CHINA
20 6–10 seats 2,350.00

21 Highway passenger 10–20 seats 2,620.00
22 transportation 20–36 seats 3,420.00
23 > 36 seats 4,690.00
IV. Non- 24 < 2t 1,200.00
commercial 25 2–5t 1,470.00
goods-
26 5–10t 1,650.00
carrying
vehicles 27 > 10t 2,220.00
V. 28 < 2t 1,850.00
Commercial 29 2–5t 3,070.00
goods-
30 5–10t 3,450.00
carrying
vehicles 31 > 10t 4,480.00
VI. Special- 32 Type1 3,710.00
purpose 33 Type2 2,430.00
vehicles
34 Type3 1,080.00
35 Type4 3,980.00
VII. 36 < 50cc 80.00
Motorcycles 37 50–250cc 120.00
38 > 250cc and three-wheeled motorcycles with sidecar 400.00
VIII. Tractors 39 ≤ 14.7kW Regionally differentiated
Concurrent use as tractor premium tariffs executed as
40 > 14.7kW
per the document Bao Jian
41 ≤ 14.7kW
Transportation tractor Chan Xian No [2007] 53
42 > 14.7kW
Notes:
• Type 1 special-purpose vehicles: oil tankers, gas tankers and liquid tankers
• Type 2 special-purpose vehicles: specific water-purification vehicles; tankers except Type 1 tankers; and various special-
purpose motor vehicles intended for wreck removal, sweeping, cleaning, hoisting, loading, lifting, agitating, excavation, earth
moving, refrigeration, thermal insulation, etc
• Type 3 special-purpose vehicles: various special-purpose motor vehicles fitted with permanent, dedicated instrumentation
intended for specialised monitoring, fire-fighting, cash transport, medical treatment, TV relay, etc
• Type 4 special-purpose vehicles: container tractors. Based on the nature of use, the rate for a trailer is to be calculated at
30% of that for a goods vehicle having the same tonnage
For low-speed goods vehicles, the premium rate for transportation tractors (>14.7kW) applies.
Calculation of short-term base premium
If the effective period of the TALCI policy for a motor vehicle is less than one year, the premium is to be
calculated using the short-term premium tariff coefficient (any timespan less than one month is to be
regarded as one month). The calculation is done as follows: first, determine the base premium based
on the ‘Schedule of base premium rates of TALCI of motor vehicles’ above; then select from the table
below the short-term monthly premium tariff coefficient based on the duration to be covered; finally,
multiply the two figures to obtain the short-term base premium.
Schedule of short-term monthly premium tariff coefficients
Policy duration (months) 1 2 3 4 5 6 7 8 9 10 11 12

Short-term monthly premium tariff 10 20 30 40 50 60 70 80 85 90 95 100
coefficient (%)
Short-term base premium = annual base premium × short-term monthly premium tariff coefficient

253
CHINA
Factors affecting the floating premium tariff for TALCI and the ratio A
The factors affecting floating premium tariff for TALCI and the ratio A are as follows:
Factors affecting floating premium tariff Floating ratio A (%)

Floating tariff linked with A1 No occurrence of liable road traffic accident during -10
road traffic accidents the preceding year
A2 No occurrence of liable road traffic accident during -20
the preceding two years
A3 No occurrence of liable road traffic accident during -30
the preceding three or more years
A4 One occurrence of liable road traffic accident 0
during the preceding year, involving no death
A5 Two or more occurrences of liable road traffic 10
accident during the preceding year
A6 Occurrence of liable road traffic accident during 30
the preceding year involving a death
Highway toll
In China, highway toll rates are calculated taking into account primary factors such as vehicle type,
vehicle weight, mileage actually travelled on tollable highways, provincial base rate, highway grade, etc.
Highway toll criteria are determined by the relevant provincial people’s government.
3 INCENTIVES FOR ENERGY-EFFICIENT AND NEW-ENERGY VEHICLES
NATIONAL NEV PROMOTION AND INCENTIVE PROGRAMME 2021
Consumers purchasing NEVs, namely BEVs, PHEVs and FCEVs included in the catalogues of
recommended models of NEVs under the promotion and incentive project, benefit from central
government subsidies.
The NEV subsidy programme is updated roughly annually.
On 29 April 2020, to help the automotive industry to fight the COVID-19 crisis, China announced the
extension of the original national NEV promotion subsidy program to the end of 2022. The latest
national NEV promotion subsidies program was published on 31 December 2020. Details are as below:
NEW ENERGY VEHICLE PROMOTION SUBSIDY CRITERIA AND TECHNICAL REQUIREMENTS
Subsidy scheme for non-public fields

Subsidy schemes for new energy passenger cars, new energy buses and new energy goods vehicles
are shown in tables 1, 2 and 3 respectively.

254
CHINA
Table 1 Subsidy scheme for new energy passenger cars (non-public fields)
Battery electric range (driving mode, km)

RMB ≥ 50
(NEDC driving
Vehicle type cycle)
300 ≤ RMB < 400 RMB ≥ 400
RMB ≥ 43
(WLTC driving
cycle)
Battery electric passenger car 1.3 1.8 ─
Plug-in hybrid electric passenger car (including extended-
─ 0.68
range type)
1. Subsidy amount per unit of vehicle for battery electric passenger car = Min {mileage subsidy criterion, electric quantity
carried by vehicle × RMB400} × battery system energy density adjustment factor × vehicle energy consumption adjustment
factor.
2. For new energy passenger cars which are not purchased by a private person or are used for commercial operation, 70% of
corresponding subsidy amount will be granted.
3. The pre-subsidy sales price shall be less than RMB300,000 (based on the uniform invoice for motor vehicle sales, the
official guidance price of the enterprise, etc.), except for the “battery swap mode”.
Table 2 Subsidy scheme for new energy buses (non-public fields)
Subsidy Upper limit of central finance subsidy

criterion of per unit of vehicle (RMB10,000)
Vehicle Adjustment factor of subsidy of central
central
type finance
finance 6 < L ≤ 8m 8 < L ≤ 10m L > 10m
(RMB/kWh)
Battery Energy consumption per unit of payload
2 4.4 7.2
electric (Wh/km·kg)
bus other ≤ 0.17
400 ≤ 0.18 and
than quick and ≤ 0.15
> 0.17
charging > 0.15
type 0.8 0.9 1
Quick Quick charging rate (C-rates) 1.6 3.2 5.2
charging > 5 and
type of ≥ 3 and ≤ 5 > 15
720 ≤ 15
battery
electric 0.8 0.9 1
bus
Plug-in Fuel saving performance (%) 0.8 1.6 3.04
hybrid
> 65 and
electric ≥ 60 and ≤ 65 > 70
≤ 70
bus
480
(including
extended- 0.8 0.9 1
range
type)
Subsidy amount per unit of vehicle = Min {electric quantity carried by vehicle × subsidy criterion per unit of electric quantity;
upper limit of the subsidy per unit of vehicle} × adjustment factor (including energy consumption factor per unit of payload, quick
charging rate factor and fuel saving rate factor)
Table 3 Subsidy scheme for new energy goods vehicles (non-public fields)
Vehicle type Subsidy criterion of Upper limit of central finance subsidy per unit
central finance of vehicle (RMB10,000)
(RMB/kWh) Category N1 Category N2 Category N3
Battery electric goods vehicle 252 1.44 2.8 4
Plug-in hybrid electric goods 360 ─ 1.6 2.52
vehicle (including extended-
range type)

255
CHINA
Subsidy Scheme for Public Transport and Other Fields
Subsidy schemes for new energy passenger cars, new energy buses and new energy goods vehicles
are shown in tables 4, 5 and 6 respectively.
Subsidy scheme for new energy passenger cars (public fields)

Table 4
Battery electric range (driving mode, km)

Vehicle type RMB ≥ 50 (NEDC driving cycle)
300 ≤ RMB < 400 RMB ≥ 400
RMB ≥ 43 (WLTC driving cycle)
Battery electric passenger car 1.62 2.25 ─
Plug-in hybrid electric
passenger car (including ─ 0.9
extended-range type)
1. Subsidy amount per unit of vehicle for battery electric passenger car = Min {mileage subsidy criterion, electric quantity
carried by vehicle × RMB495} × battery system energy density adjustment factor × vehicle energy consumption adjustment
factor.
2. For new energy passenger cars which are not purchased by a private person or are used for commercial operation, 70% of
corresponding subsidy amount will be granted.
3. The pre-subsidy sales price shall be less than RMB300,000 (based on the uniform invoice for motor vehicle sales, the official
guidance price of the enterprise, etc.), except for the “battery swap mode”.
Table 5 Subsidy scheme for new energy buses (public fields)
Subsidy Upper limit of central finance

criterion of subsidy per unit of vehicle
Adjustment factor of subsidy of
Vehicle type central (RMB10,000)
central finance
finance
6 < L ≤ 8m 8 < L ≤ 10m L > 10m
(RMB/kWh)
Battery Energy consumption per unit of
electric bus payload (Wh/km·kg)
other than 450 ≤ 0.18 and ≤ 0.17 and 2.25 4.95 8.1
≤ 0.15
quick > 0.17 > 0.15
charging type 0.8 0.9 1
Quick Quick charging rate (C-rates)
charging type > 5 and
810 ≥ 3 and ≤ 5 > 15 1.8 3.6 5.85
of battery ≤ 15
electric bus 0.8 0.9 1
Plug-in Fuel saving performance (%)
hybrid
≥ 60 and > 65 and
electric bus > 70
540 ≤ 65 ≤ 70 0.9 1.8 3.42
(including
extended- 0.8 0.9 1
range type)
Subsidy amount per unit of vehicle = Min {electric quantity carried by vehicle × subsidy criterion per unit of electric quantity;
upper limit of the subsidy per unit of vehicle} × adjustment factor (including energy consumption factor per unit of payload,
quick charging rate factor and fuel saving rate factor).
Table 6 Subsidy scheme for new energy goods vehicles (public fields)
Vehicle type Subsidy criterion of Upper limit of central finance subsidy per unit of
central finance vehicle (RMB10,000)
(RMB/kWh) Category N1 Category N2 Category N3
Battery electric goods vehicle 315 1.8 4.95 4.95
Plug-in hybrid electric goods 450 ─ 1.8 3.15
vehicle (including extended-
range type)

256
34
ACEA TAX GUIDE 2021
India
Chapter prepared by
Atanu Ganguli
[email protected]
SIAM
Society of Indian Automobile Manufacturers
Core 4 B, 5th Floor
India Habitat Center
Lodi Road
IN — 110 003 New Delhi
T. +91 11 24 64 78 10
F. +91 11 24 64 82 22
www.siam.in
INDIA
1 AUTOMOBILE TAX
India levies Goods and Services Tax (GST) on the sale of vehicles. The rates applicable for various
categories of vehicles is provided below:
Vehicle category GST Rate (%)
Passenger vehicles (petrol, diesel, CNG, LPG, hybrid) 28
Commercial vehicles
Three-wheelers
Two-wheelers
Electric vehicles 5
Over and above, a State GST Compensation Cess1 is also applicable for a few vehicle categories as
mentioned below:
Vehicle category GST Cess Total

Rate (%) applied rate
(%) (%)
Small passenger vehicles (petrol, CNG, LPG) < 4m in length and < 1,200cc 28 1 29
engine
Small passenger vehicles (diesel) < 4m in length and < 1,500cc engine 28 3 31
Mid-size passenger vehicles (> 4m in length with < 1,501cc engine) 28 17 45
Large passenger vehicles (> 4m in length with > 1,500cc engine) 28 20 48
UVs/SUVs (> 4m in length with > 1,500cc engine & >169mm ground clearance) 28 22 50
Hybrid cars (except small hybrid cars) 28 15 43
> 350cc two-wheelers 28 3 31
10 – 13-seater public transport vehicles 28 15 43
Motor Vehicle Tax/ Road Tax is levied in addition to GST and varies according to the states. Detailed
rates for different types of vehicles in different states are given in the annex below.
1
Tax

258
INDIA
ABBREVIATIONS
Addl: Additional
COC: Cost of Chassis
GVW: Gross Vehicle Weight
HGV: Heavy Goods Vehicles
LGV: Light Goods Vehicles
LTT: Life-Time Tax
LW: Laden Weight
MGV: Medium Goods Vehicles
MVT: Motor Vehicle Tax
OTT: One Time Tax
PA: Per Annum
PM: Per Month
PP: Per Passenger
PPT: Permit Period Tax
PQ: Per Quarter
PS: Per Seat
PT: Passenger Tax
RLW: Registered Laden Weight
RT: Road Tax
SRT: Special Road Tax
ULW: Unladen Weight
VC: Vehicle Cost
VV: Vehicle Value

259
INDIA
STATE-WISE RATES OF MOTOR

VEHICLE TAX

260
State-wise Rates of Motor Vehicle Taxes
States/Union Buses Trucks/Goods Vehicles, Two Wheelers Cars/Jeeps Taxi/Cab Auto rickshaws/3
Territories Trailers and Tractors Wheelers
Andhra Pradesh Stage Carriage Trucks: Basis: LW MVT: OTT MVT:OTT MVT:OTT Autos
(As on 31 March APSRTC – LW (kg) Tax (Rs.) 9% of VC; 9% of VC; VC Tax Passenger:
2016) Moffusil services: 7% of Up to 300 404 14% in case of second 14% in case of second (Rs.) 4 seater: Rs. 110
Gross Traffic Earnings. vehicle. vehicle. Below 12% PSPQ
12,000– 2,967
Urban services: 5% on Gross 10 lakh of VC 6 seater: Rs. 200
15,000
Traffic Earnings. > 10 14% PSPQ
> 15,000 Rs. 2,967 + Rs.
Private: lakh of VC
66 for every 250
Town Service: Goods:
kgs in excess of
Ordinary services: Rs. 330 to < 1000kg Rs. 510 PQ
15,000kg
Rs. 660 (on daily km) 1000-1500kg Rs. 750
Express services: Rs. 822. Trailers: PQ
Ordinary services: Rs. 414 to LW (kg) Tax (Rs.) 1500-3000kg Rs. 850
Rs.948 (on daily km) Up to 762 230 PQ
Express services:Rs 1,092 to
3,048– 690
Rs. 3,500 (on daily km)
4,000
.
> 4,000 Rs. 345 + Rs. 40
Contract Carriage for every 250kg
All India Tourist Permits – Rs. PQ
3,675PSPQ
State-wide Permits – Rs. Tractors:
2,625 PSPQ LW (kg) Tax (Rs.)
District Wide Permits – Rs. Up to 762 230
1,207 PSPQ
Idle Contract Carriage – Rs. 3,048 – 690
850 PSPQ 4,000
> 4,000 Rs. 690 + Rs. 80
for every 250kg
261
INDIA

States/ Union Buses Trucks/Goods Vehicles, Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Arunachal Passenger Tax Goods Tax OTT ( for 10 years) Cars/Jeeps MVT Passenger Tax
Pradesh (As on Seating Tax Per Trucks: ULW (kg) Tax (Rs.) OTT ( for 10 years) Up to 6 Three wheelers
31 March 2017) Capacity annum Carrying Goods tax Up to 90 1,700 VC (Rs. Tax (%) passengers Rs. (Passenger):
13–30 MVT Rs. capacity PA 90–135 2,500 Lakh) 2,400 PA Up to 3 passengers
7000 (MT) > 135 3,000 <5 2 Rs.800 PA
> 30 MVT Rs. 0–1 1,500 5–15 3 7-12 passengers
7000+ > 1–3 3,000 15–20 4 Rs. 5,000 PA 4 to 6 passengers
Passenger > 3–9 3,000+ Rs. > 20 5 Rs.1,600 PA
tax Rs. 80 500 for each
per seat additional
MT
Motor Vehicle Tax Rs. 7000 > 9–12 7,000+ Rs.
Passenger Tax Rs 80 per 100 for each
seat. additional
MT
≥ 12 8,000 + Rs.
350 for each
additional
MT
Trailers:
Light : Rs. 500
Medium : Rs. 1,200
Heavy : Rs. 2,000
Assam MVT: Passenger tax & Goods tax MVT (OTT) MVT (OTT) Passenger Tax MVT:OTT Rs. 6,000
(As on 31 Basis: Seating Capacity: Trucks: Basis: ULW Basis: Vehicle Cost
March 2017) No. M.V. Tax (Rs.) Basis: Authorized capacity Up to 6 persons Basis: passenger
of Capacity Tax (Rs.) ULW (kg) Tax VC (Rs % of (permitted to carrying capacity:
per- (MT) (Rs.) lakh) original operate in one Per- Tax
sons Up to 65 2,600 cost city or region): sons
14 – MVT Rs. 12,000 65–90 3,600 Up to 4 5 Rs. 4,000 PA or Up to 3 Rs 1,500
30 PA or Rs.3,000 90–135 5,000 4–6 6 Rs. 1,000 PQ PA or
PQ 135–165 5,500 Up to 9 persons: Rs. 400
Up to 1 Rs.2,400 PA or Rs.600 PQ 6–12 7
> 30 Annual: > 165 6,500 (permitted to PQ
262
Rs. 14,400 + Rs. 1–3 Rs.4,600 PAor Rs.1,150PQ 12–15 7.5 operate in all 4–7 Rs.
130 for every 3–9 Rs.4,600 PA + Rs.950for 15–20 9 over state): Rs 3,000
addl. seat, more every addl 1MT more than 6,500 PA or Rs. PA or
20–30 12 1,650 PQ
than 31. 3 MT PA or Rs. 800
Quarterly: Rs. Quarterly Rs. 1,190 + Rs. > 30 14 PQ
3,600 PQ + Rs. 33 235 for every addl 1MT Up to 10 persons:
for every addl. more than 3 MT. All over state: Rs
7,500 PA or Rs.
INDIA
seat, more than

31. 1,900 PQ

>9 Rs. 10,800 PA + Rs. 350 for
Omni Tourist Bus: Rs. every addl. 1MT more than
18,000 PA or Rs. 4500 PQ 9MT or Up to 13 persons:
Deluxe/Super-deluxe Rs.2,250 PQ + Rs.80 for All over state: Rs
Express Buses: Rs. 14,400 every addl. 1MT, more than 11,000 PA or Rs.
PA 9 MT. 2,800 PQ
Rs. 3,600 PQ + Rs. 37 for
every seat above 31 > 12 Rs. 13,500 PA + Rs.470 for
All Assam Super Deluxe every addl 1MT, above 12
contract carriage: Rs. MT or
55,000 PA or Rs. 13,750 PQ Rs.3,375 PQ +Rs.115 for
every addl 1MT above 12
MT
Tractors/Trailers:
Capacity Tax (Rs.)
(MT)
Up to 2 Rs.1,000 PA or Rs.250 PQ
2–5 Rs.2,000 PA or Rs.500 PQ
5–9 Rs.4,000 PA or Rs.1,000 PQ
>9 Rs.6,000 PA orRs.1,500 PQ
263
INDIA

Bihar (As on 31 Basis Trucks: MVT: MVT: MVT: MVT:
March 2017) Seating capacity 13 to 26: OTT- 7% of cost price OTT- 7% of cost price OTT- 7% of cost OTT-
Type of Tax per GVW TaxPA(Rs.) excluding VAT+ Road excluding VAT price excluding Passenger:
Service seat 3,001 – 700 per Safety Cess 1% of cost of plus VAT. Seating Capacity Up
PA(Rs.) 16,000 tonne and vehicle (excl. VAT) Road Safety Cess 1% of plus to 4 Rs. 9,000/-
Ordinary 500 part thereof cost of vehicle (excl. Road Safety Cess Up to 7 Rs. 13,500/-
Semi 625 16,001- 600 per VAT) 1% of cost of + 1% of annual tax
Deluxe 24,000 tonne and vehicle (excl. VAT)
Deluxe 735 part thereof
Plus 1% of annual tax 24,001 and 500 per Goods: GVW up to
above tonne and 1,000kg:
part thereof For first 10 years
Seating capacity 27 to 32: Plus 1% of annual tax Rs.7,700/-
Type of Tax per For next 5 Years Rs.
Service seat 7,700/-
PA(Rs.) + 1% of annual tax
Ordinary 550
Tractors& Trailers: 4.5% of VC, GVW up to 1,001 to
Semi 700
excluding VAT 3,000kg:
Deluxe
Plus 1% of cost of vehicle (excl. For first 10 years
Deluxe 810
VAT) Rs.5,500/- per tonne
Plus 1% of annual tax
and part thereof.
For next 5 Years Rs.
5,500/-per tonne and
Seating capacity 33 and
part thereof.
above:
Type of Tax per + 1% of annual tax
Service seat paid as Road Safety
PA(Rs.) Cess
Ordinary 650
Semi 820
Deluxe
Deluxe 975
Volvo, 1,250
Merchandis
264
e and
equivalent
buses
Plus 1% of annual tax paid
as Road Safety Cess
INDIA

Chhattisgarh Trucks MVT: MVT: LTT: 7 % of VC MVT:
(As on 31 Use as public service vehicle Basis GVW LTT: 7 % of VC Passenger Vehicles:
March 2017) for 100km Rs. 100 PQ for each 500kg or Cars: Ordinary: Rs150 LTT 2% of SC/ST
part thereof. LTT PSPQ Vehicle (Vehicles
Category Tax VC (Rs. % of VC All India: Rs200 purchased taking
Ordinary Rs. 160 PM Tractors: Basis ULW lakh) PSPQ loans under various
thereafter Up to 5 8 schemes and
Rs. 10 for ULW Tax PQ conditions as decided
>5 9
every 10km (kg) by the State
Express Rs. 200 PM Up to Rs.175 Government and
thereafter 1,000 Jeeps: owned by any person
Rs. 15 for 1,000- Rs. 255 LTT belonging to
every 10km 2,000 9% of VC scheduled castes,
Deluxe Rs. 250 PM scheduled tribes,
thereafter other backward
Rs. 20 for classes and minority
every 10km community)
LTT 5% of VC (Where
Trailers: Rs. 85 per 500 kg vehicles purchased
and owned by the
Others: person other than the
Up to 1,000kg Rs. 175 PQ persons mentioned in
1,000–2,000kg Rs. 255 PQ (a) above.)
2,000–3,000kg Rs. 325 PQ
3,000–4,000kg Rs. 425 PQ Goods Vehicles
Tax for each trailer Rs. 100 PQ (LTT): GVW up to
3,500kg, the cost of
which:
VC (Rs. % of
lakh) VC
Up to 12
2.5
> 2.5 10
265
INDIA

States/ Union Buses Trucks/Goods Vehicles, Trailers Two Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3 Wheelers
Territories and Tractors Wheelers
Goa MVT Trucks: MVT Cars & Jeeps: MVT:
(As on 31 Up to 18 seats MVT Rs1,800 PA Basis:GVW OTT at the Seating Tax PA Passengers Vehicles:
March 2017) plus GVW 15,000kg to 16,000kg time of OTT: 8% to 10% of capacit (Rs.) Up to 2 seats used for hire
Passenger Tax (vehicles Goods Tax Rs. 7500 PA or Rs. registration vehicle cost at the y Rs. 110 PA; for every
registered in Goa): 52,500/-as OTT. Cost of time of registration. Up to 3 300 additional seat Rs. 50/- PA.
Category Passenger GVW exceeds 16,000kg for vehicle: Up to 4 350
Tax Rs. PS 1,000kg or part thereof in excess Rs. 1.50 VC (Rs. Tax (%) 5 400 OTT at the time of
of 16,000kg Rs 400/- PA or Rs. Lakhs: 8% of Lakh) For registration:
State Carriage 40 (PSPM) 52,500/- OTT. the cost. Passengers Vehicles: Rs
Up to 6 8 every 50
Contract 75 (PSPM) Above Rs. 6-10 9 addl. 160/- at the time of
Carriage Tractors: 1.50 Lakhs: <10 10 seat up registration.
Sleeper Coach 200 (PPPM) Basis:RLW 14% of to 7 Goods Vehicles: Rs 5,660/-
Rs. 3,000 vehicles cost. seats at the time of registration.
Vehicles registered in a State
other than Goa: Rs. 300/- per Motorcycle
seat for one round trip for used for hire:
contract carriage vehicles. Rs. 150/- PA
Buses registered in state other
than Goa and plying in the state
of Goa Rs.600 PSPM.
Gujarat Basis: Seating Capacity Trucks: Basis GVW OTT OTT OTT
(As on 31 Ordinary Omni Bus: 6% of VC 6% of VC (Lump sum) 6% of VC (Lump sum) Lump sum tax
March 2017) Seating Tax Per GVW (kg) Tax (Lump sum)
Capacity Seat/annum Up to 7,500 6% of VC Passengers: 2.5% of VC
7–12 Rs. 1,200 7,501–12000 8% of VC
12–20 Rs. 3,000 Goods: 6% of VC
> 12,001 12% of VC
> 20 Rs. 3600
Trailers:
Luxury Omni Bus: 6% of VC
Seating Tax Per
Capacity Seat/annum Tractors (agriculture use):
Up to 20 Rs. 4,620 3.5% of VC
> 20 Rs. 6,000
266
Sleeper Omni Bus:
Seating Tax Per
Capacity Seat/annum
Berth/Sleeper Rs. 9,000
capacity up to
20
Berth/Sleeper Rs. 12,000
INDIA
capacity > 20
Combination Each seat

of seat and Rs.4,620
berth up to 20 &each berth
Rs. 9000
Combination Each seat
of seat and Rs.6,000 &
berth above 20 each berth
Rs. 12,000
Haryana (As on Mopeds: ULW upto
31 March 2017) 90.72 Kg Rs. 150 (For 15 years)
VV (Rs. Tax (% of VV (Rs. Tax (% of VV (Rs. Tax (% of VV Tax VV Tax
lakh) VV) lakh) VV) VV (Rs. Tax lakh) VV) (Rs. (% of (Rs. (% of
lakh) Rate (% Up to 6 5 lakh) VV) lakh) VV)
of VV) 6–20 8 Up to 5 Up to 5
Up to 6 5 Up to 6 5
Up to 4 6 6
0.75 > 20 10 6–20 8 6–20 8
6–20 8 6–20 8 0.75–2 6 > 20 10 > 20 10
>2 8
> 20 10 > 20 10
•
Himachal Stage carriage: Rs. 500 Trucks: Lifetime Tax for a LTT for 15 years Rs. 350 PSPA Passengers: Rs. 200
Pradesh PSPA LGV: Rs. 1,500 PA period of 15 years Basis: Engine capacity PSPA
(As on 31 Contract carriage: Rs. 1,000 MGV: Rs. 2,000 PA Basis: Engine capacity Cars and Jeeps: Goods: Rs. 1,500 PA
March 2017) PSPA HGV:Rs. 2,500 PA Engine Tax Engine Capacity % of
capacity (cc) VC
Tractors and Trailers: Up to 50 3 % of Up to 1,000 2.5
Rs. 1,500 PA cc price
> 50 cc 4 % of
267
price Above 1,000 3
Commercial pick-up jeeps

Rs. 1,500 PA
INDIA

Jammu& OTT OTT
Kashmir (As on Rs. 1,100 Quarterly Trucks: Rs. 1100 Quarterly Motorcycle: Rs. 4,000 Car: Rs. 6,000/- Rs. 375 Quarterly Passengers: Rs. 250
31 March 2017) Scooter: Rs. 2,400 Jeep: Rs. 20,000/- Quarterly
Trailers: Goods: Rs. 400
Rs. 1100 Quarterly Quarterly
Tractors: Exempted
Jharkhand Basis: Seating capacity Trucks basis: RLW OTT Basis: Seating capacity Basis: Seating Passengers: up to 4
(As on 31 capacity persons
March 2017) Rs. 616+Rs. 105.50 PA for RLW Tax PA (Rs.) ULW (Kg) Tax Rs. Cars: OTT Rs. 88 PQ +
each additional seat beyond 5 (kg) Up to 90 1,600 Seating capacity 5 Up to 5 seats Passenger tax Rs.
seats. > 90 1,800 and persons Rs. 9,000 (including driver) 160 PQ
< 500 Rs. 296.50 PA Plus or Rs. 626 PA plus
3% of
Additional Motor vehicle Additional MV 3% of cost price of Additional M. V. Goods:
vehicle
Tax TaxRs. 310 PA vehicle TaxRs 1600 PA RLW Tax
price
Seats Tax Rs. PA (Kg) (Rs)
500– Rs. 298.50 PA + Rs. Jeeps: OTT Above 5 seats Rs.
ULW up to 90 Kg MVT Rs. Up to MVT
2,000 34 for every addl. 6 to 8 seats: 4% of cost 616 PA plus Rs
6–15 240 PSPA 1,600 1,000 RS. 92
250 Kgs or part price of vehicle 105.50 for each
above PQ+Goo
thereof above 9 to 10 seats: 5% of cost addl. Seat
16–32 320 PSPA 3% of cost price of vehicle ds tax
2,000kg price of vehicle Additional M. V. Rs. 136
2,000– Rs. 502.50 PA + Rs. Tax Rs 240PA for PQ
> 32 416 PSPA 4,000 34 PA for every each addl seat.
addl. 250kg or part
thereof
4,000– Rs. 836.50 PA + Rs.
8,000 51.50 PA for every
addl. 250kg
Rs. 1,662.60 PA +
> Rs. 136.50 PA for
8,000 every addl. 250kg
Tractors : Rs. 100 PA
268
Trailers :
RLW Tax PA (Rs.)
(kg)
< 500 Rs. 253 PA + Goods
tax Rs.1,440 PA
INDIA

500– Rs. 253 + 29 PA for
2,000 every addl. 250kg +
Goods tax Rs.1,440
PA
2,000– Rs. 432 PA + Rs. 40
4,000 PA for every addl.
250 Kgs+ Goods tax
Rs.1,440 PA
4,000– Rs. 760 PA + Rs.
8,000 49.50 PA for every
addl. 250 Kgs+
Goods tax Rs.1,440
PA + Rs 160 PA for
each additional per
1,000kg
269
INDIA

Karnataka Category Tax (Rs. Trucks : LTT LTT Passengers/ Goods:
(As on 31 PQ) Basis : RLW VC Rs. Rs 2,500 (LTT ) + 11%
March 2017) Campervan 4,700/every RLW (kg) Rs. VC Tax (%) VC (Rs. Tax (%) (Rs. cess
s sq. mtr. Lakhs) Lakh)
5,500– 1,800 PQ Up to 5 13
Contract 1,500 PSPQ 12,000 Up to 10
5–10 14 Up to 100
carriage Rs. 50,000
10–15 15 15 PSPQ
Stage 900 PSPQ 12,000– 2,200 PQ 15–20 17 > 15 LTT of
carriage 15,000 > Rs. 50,000 12 > 20 18 15%
Luxury 3,500 PSPQ
+11% cess +11% cess
Buses > 15,000 2,200 PQ plus
+11% cess 75 for every > 1,00, 000 18 Cars, vans run on
250kg or part electricity: exempted
thereof in from payment of tax
excess of w.e.f. 01.04.2016.
Plus 11% cess
15,000kg
+11% cess
Motorcycles run on
electricity: exempted
Tractors : Rs. 1,500 from payment of tax w.e.f.
01.04.2016.
Trailers : Rs. 500
270
INDIA

States/ Buses Trucks/Goods Vehicles, Trailers and Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Union Tractors Wheelers
Territories
Kerala Vehicle to ply solely as Basis: GVW/LW OTT Motor cabs and
(As on 31 Stage Carriage (based on Goods carriages other than those Basis: Purchase value Tourist Motor OTT
March 2017) floor area): fitted with tipping mechanism Purchase Tax (%) cabs having cubic 6% of VV
a) Ordinary service other GVW (kg) Tax (Rs. PQ) value Purchase Tax (% of capacity of 1500
than city/town Up to 300 150 (lakhs) value (Rs. purchase CC: Passengers:
services- Rs. 1,300 per Up to 1,000 250 Up to 1 8% of Lakh) value)
square meter or part 1,000– 470 purchase Purcha Tax (% Carrying Capacity:
thereof. 1,500 value se of Up to 3
Up to 5 6
1,500– 610 (PV) value purcha Passengers:Rs.125PQ
b) Ordinary city/town 5–10 8 (Rs. se
2,000 Above 1 10% of
services- Rs. 1360 per up to 2 PV 10–15 10 Lakh) value)
2,000– 780
square meter or part 3,000 >2 20% of > 15 15 Up to 10
thereof. 3,000– 930 PV 15
4,000
c) Fast passenger and 4,000– 1340 >15 15
other higher class 5,500
service- Rs. 1,400 per
5,500– 1580
square meter or part
7,000
thereof.
7,000– 1,940
9,000
Vehicles registered in Kerala 8% of VV
9,000– 2,060
and operating on Inter State
9,500
routes
9,500– 2,300
i. Contract carriage
10,500
permitted to carry more
than 6 passengers - for 10,500– 2,550
every passenger- 11,000
Rs.2,250 11,000– 2790
ii. Contract carriage 12,000
with push back seats 12,000– 3,030
and permitted to carry 13,000
more than 6 passengers 13,000– 3,270
- for every passenger- 14,000
14,000– 3,390
271
Rs.3,000
iii. Contract carriage 15,000
with sleeper berths and 15,000– 3390 + Rs.130 for
permitted to carry more 20,000 every 250kg or part
than 6 passengers - for thereof in excess of
every passenger- 15,000 kg
Rs.4,000 > 20,000 5,990 + Rs.250 for
every 250 kg or part
INDIA
thereof in excess of
20,000kg

Goods carriages fitted with tipping
mechanism
GVW (kg) Tax (Rs. PQ)
Up to 300 190
Up to 1,000 310
1,000– 590
1,500
1,500– 760
2,000
2,000– 970
3,000
3,000– 1,160
4,000
4,000– 1,670
5,500
5,500– 1,970
7,000
7,000– 2,420
9,000
9,000– 2,590
9,500
9,500– 2,880
10,500
10,500– 3,190
11,000
11,000– 3,480
12,000
12,000– 3,790
13,000
13,000– 4,090
14,000
14,000– 4,240
15,000
> 15,000 4,240 + Rs.160 for
every 250kg or part
272
15,000kg
Tractors: Rs. 880 PA
Trailers:
GVW (kg) Tax (Rs. PQ)
Up to 1,000 180
INDIA
1,000– 360
1,500
1,500– 480

2,000
2,000– 650
3,000
3,000– 870
4,000
4,000– 1,100
5,500
5,500– 1,460
7,000
7,000– 1,700
9,000
9,000– 1,820
9,500
9,500– 1,940
10,500
10,500– 2,180
12,000
12,000– 2,300
13,000
13,000– 2,420
14,000
14,000– 2,550
15,000
15,000– 2,550 + Rs. 130 for
20,000 every 250kg or part
15,000kg
> 20,000 5150 + Rs.250 for
every 250kg or part
20,000kg
273
INDIA

Madhya Category of Spare Tax Goods vehicles without Motorcycle: Basis : seating Passengers
Pradesh (As on Bus (Rs. PSPM) pneumatic tyres: Basis RLW Cars/cabs: LTT capacity
31 March LTT- 7% of VC Seating Rs.
2015) A.C. 230 RLW (MT) Rs PQ VC up to Rs. 15 Lakh: capacit PSPQ
Deluxe 230 Upto 2 600 Motorcycle Seatin Lifeti y
battery/CNG/LPG driven: Fuel used Tax (% of g me
Express 180 2–4 900 5% of VC VC) capaci Tax Up to 3 90
Ordinary 120
4–6 1,300 Petrol/die 7 ty > (% of +1
6–8 1,700 sel driven 6+1 VC) 4-6 300
Stage Carriage (Prime Route)
and
Category of Tax (Rs. 8–10 2,100 up to
Bus PSPM) 10–12 2,500 Hybrid 6
12+1
A.C. 250 for first vehicle
12–14 2,900 Battery/C 5 Petrol Seating Life
100km +
Rs. 20 for 14–16 3,300 NG/LPG diesel capacit Time
every 10km 16–18 3,700 driven 8 y 3+1 Tax (%
of VC)
> 18 3,700 + Rs
500/PQ VC above Rs. 15 Lakh:
Deluxe 250 for first Hybrid Petrol/d 7
100 km + Fuel used Tax (% of vehicl iesel
Express All goods vehicles with 6
Rs. 15 for VC) e driven
pneumatic tyres: 1.5 times the
every 10km original slab Petrol/die 8 Hybrid 6
sel driven Batter vehicle
Ordinary 240 for first Goods vehicles (Other States y/CNG Battery/ 5
/LPG 5
100 km + without pneumatic tyres): 85% Hybrid 6 CNG/LP
Rs. 10 for of the original slab vehicle G
every 10km Battery/C 5
Trailers: Basis ULW NG/LPG
ULW (kg) Rs. PQ
Up to 1,000 28
Stage Carriage (Ordinary > 1,000 66 Quarterly tax:
Route)
274
Category of Tax (Rs. Kg(ULW) Tax Rs.
Bus PSPM) PQ)
A.C. 200 for first 800 64
100km + 801– 94
Rs. 15 for 1,600
every 10km 1,601– 112
Deluxe 180 for first 2,400
INDIA
Express 100 km + 2,401– 132

Rs. 10 for 3,200
every 10km
> 3,200 150

Ordinary 160 for first
100km +
Rs. 10 for
every 10km
Stage Carriage (Doorasth

Route)
Category of Tax (Rs.
Bus PSPM)
A.C. 160 for first
100km + Rs.
10 for every
10km
Deluxe 140 for first
Express 100km + Rs.
5 for every
10km
Ordinary 120 for first

100km + Rs.
5 for every
10km
Contract Carriage
Seating Tax (Rs.
Capacity PSPM)
Up to 3 90
4–7 300
7–13 450
> 13 800
275
INDIA

States/ Union Buses Trucks/Goods Vehicles, Trailers Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Maharashtra Basis : Carrying Capacity Trucks: Basis: GVW OTT
(As on 31 Stage carriage GVW (kg) OTT (Rs.) Owne Tax( Petrol Driven: Motor Cab Goods Carriages for
March 2017) Persons Tax LMVs rship % on VC (Rs. OTT (Rs.) Seating OTT each vehicle Rs. 750
(Rs.)PSPA VC) Lakh) Capacity (Rs.) PA
City MVT 71 Up to 750 8,400 Individual 3+1 3,850
+PT 3.5% of 750–1,500 13,650 4+1 4,950
fare Up to 10 Individual 5+1 6,050
collected 1,501–3,000 18,900
99 cc Up to 10 11% of
3,000–4,500 25,200 6+1 7,150
Rural MVT 71 99.1 11 VC
+PT 17.5% –299 7+1 4,494
4,501–6,000 31,500
of fare cc 10–20 12% of 8+1 4,496
6,001–7,500 37,800
collected > 229 12 VC 9+1 4,500
A.C. MVT 71 Medium and HGVs(Annual) cc 10+1 4,500
+PT 5.5% of 7,501–9,000 6,450 Other than >20 13% of
fare VC 11+1 4,500
9,001–10,500 7,500 individual
collected Up to 20 12+1 4,500
10,501– 8,550 Other than
99 cc
12,000 individual/Imported
Contract Carriage: 99.1 20 Tourist Taxi
12,001– 9,750
Persons Tax (Rs.) –299 Up to 10 18% of Seating Annual
13,500
13+1 to 1,700 PSPA cc VC Capacity Tax (Rs.)
13,501– 10,950
24+1 > 229 20 Non AC
15,000
> 25+1 1,900 PSPA cc 10–20 20% of 4+1 4,000
15,001– 11,350
VC 5+1 5,000
15,500
Tourist: Rs. 5,500 PSPA
15,501– 11,750 >20 20% of 6+1 6,000
AC Tourist Buses:Rs. 6,500
16,000 VC A.C.
PSPA
16,0001– 12,150 4+1 8,000
Sleeper Coach: Rs. 7,000 per
16,500
berth PA 5+1 10,000
Rs. 450 for every 500kg or its Diesel Driven:
part exceeding 16,500kg VC (Rs. OTT (Rs.) 6+1 12,000
Lakh) Imported
. 4+1 12,000
5+1 15,000
Individual
6+1 18,000
276
Up to 10 13% of
VC
Private Service Vehicle:
10–20 14% of Non-AC: Rs. 1,000 PSPA;
VC AC: Rs. 2,000 PPPA
>20 15% of
VC
INDIA

Other than
individual/Imported
Up to 10 20% of
VC
10–20 20% of
VC
>20 20% of
VC
CNG/LPGDriven:
VC (Rs. OTT(Rs.)
Lakh)
Up to 10 7% of VC
10–20 8% of VC
>20 9% of VC
Other than
individual/Imported
Up to 10 14% of
VC
10–20 16% of
VC
>20 18% of
VC
277
INDIA

INDIA
In addition to the MVT, Environment Tax and Profession Tax rates in Maharashtra State are as below:
Environment Tax Rates
Fuel used in Age of vehicle Periodicity Rate of Tax

vehicle (in years) of tax (in (Rs.)
years)
Transport Vehicles
Auto rickshaw Petro / Diesel >8 5 750
Motor cab Petro / Diesel >8 5 1,250

Motor cab (Jeep type) Petro / Diesel >8 5 1,250
Tourist Taxi Petro / Diesel >8 5 2,500
Light Goods Vehicles Petro / Diesel >8 5 2,500
Medium & Heavy Goods Vehicles Petro / Diesel >8 1 10% of
annual tax
Contract Carriage Petro / Diesel >8 1 2.5% of
annual tax
Private Service Vehicle Petro / Diesel >8 1 2.5% of
annual tax
Tourist Buses Petro / Diesel >8 1 2.5% of
annual tax
Others Petro / Diesel >8 1 2.5% of
annual tax
Auto rickshaw CNG / LPG > 15 5 750
Motor cab CNG / LPG > 15 5 1,250

Motor cab (Jeep type) CNG / LPG > 15 5 1,250
Tourist Taxi CNG / LPG > 15 5 2,500
Light Goods Vehicles CNG / LPG > 15 5 2,500
Non-Transport Vehicles
Two-wheeler Petrol >8 5 200
Other than two-wheeler (Petrol) Petrol >8 5 3,000

Other than two-wheeler (Diesel) Diesel >8 5 3,500
Profession Tax Rates

Category Annual Tax (in Rs)
All type of Taxies for vehicle 1,000
Passenger Buses & goods Carriage vehicle for each vehicle 1,500
Note: Tax shall not exceed Rs. 2500/- P.A.

278
Territories OTT
Seats Tax (Rs. LW (Tonne) Tax (Rs. PA) (15 years): OTT (15 Yrs.): 3-8% of Up to 6 seats Rs. Passenger:
Manipur PA) Up to 100cc Rs. original cost of vehicles. 600 PA. Seating Tax (Rs.
(As on 31 1,700 capacity PA)
March 2017) 12–23 MVT Up to 1 1,200+GT 600 Up to 200cc Rs. Up to 12 seats Rs.
Cost Tax (%
2000+1152 2,700 1,200 PA MVT 300
Up to 3 2,480+ GT 1,320 of of
passenger. Up to 300cc Rs. Up to 3
Vehicle vehicle
tax Up to 5 3,760+ GT 1,800 3,000 Passenge
(Rs. cost)
24–34 MVT Lakhs) r Tax: 400
3000+1896 7.5–9 6,320+ GT 3,000
Up to 3 3 Up to 6 MVT 600
passenger Up to 10 6,960+ GT 3,600 4–6 4 Passenge
tax
7–10 5 r Tax: 668
> 34 MVT > 10 6,960+640 for
11–15 6
5000+2640 every addl. ton,
16–20 7 Goods:
passenger GT 3,600+240 for
≥ 20 8 Fuel used Tax (Rs.
tax every addl. ton
PA)
> 15 6,960+640 for
every addl. ton, MVT 350
GT 3600+600 for Petrol
every addl. ton Driven Goods
Tax: 500
Tractors: Diesel MVT 700
LW (Tonne) Tax (Rs. PA) Driven
Goods
Tax: 600
Up to 2 160
2–4 320
>4 600
Trailers:
ULW (Tonne) Tax (Rs. PA)
720
279
Up to 2
1,200
>2
INDIA

Territories
Meghalaya Rs. 5,250 PA + Rs 60 for Trucks: OTT for Cars: MVT MVT: Rs. 2400
(As on 31 every seat Above 30MT Rs. 2,250 + Rs. 525 for every 10 years OTT Rs. 3,000 for 10 Rs 1,950 PA Passengers Vehicles: Rs.
March 2017) additional 1 MT above 3 MT kg Tax years original cost price 1,350 PA
(Rs.) up to Rs. 3 lakh -2 % of
Tractors: Up to 1,05 the original cost Goods Vehicles: Rs.
Metric tonne Rs. PA 65 0 1,125 PA @ of 1 metric
Up to 2 450 65– 1,72 Jeeps: tonne
2–5 900 90 5 OTT Rs. 4,500 for 10
>5 1,500 90– 2,40 years original cost
135 0 above Rs. 3 lakh up to
Trailers: OTT for 10 years > 2,85 Rs. 15 lakh 2.5 per cent
Trailers Rs. PA 135 0 of the original cost
Light 450
Medium 1,125
Heavy 1,875
Buses Trucks/Goods Vehicles, Trailers and Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Nagaland Tractors Wheelers
(As on 31 Trucks: OTT 15 years
March 2017) All India Tourist: Rs. 300 Rs. 550 for first tonne and Rs.175 for every 5% of basic cost OTT 15 years Local: Rs. 600 PA plus Passengers: Rs. 300
PSPA plus Rs. 2,500 additional 500kg 5% of basic cost Rs. 1,000 passenger tax PA plus Rs. 750
passenger tax Goods Tax: per vehicle passenger tax per
per vehicle. Carrying Capacity Rs vehicle.
(MT) Zonal: Rs. 800 PA plus
Rural and city buses: Rs. 120 <2 500 Rs. 1,000 passenger tax
PSPA plus Rs. 2,000 2–5 1,000 Local Maxi Cab: Rs.
passenger tax 4,000 PA plus Rs. 1,250
5–10 1,500 passenger tax
10–20 2,000 AITT Maxi Cab: Rs.
20–30 2,500 6,000 PA plus Rs, 1,500
passenger tax
> 31 3,000
280
Tractors: Rs. 580 PA
Trailer: Rs. 600 PA

INDIA

Odisha Buses Trucks/Goods Vehicles, Trailers and Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
(As on 31 Tractors Wheelers
March 2017) Basis: Capacity, distance covered per day Registered Laden Weight (RLW)
and nature of service monthly Rates for Trucks < 91 kgs ULW: Rs 150 RLW Tax Rs. 307 Passenger:
PA (Kg) PA PSPA + Rs. 123 PSPA
RLW. MT PA (Rs.)
Stage Carriage: > 91 kgs ULW: Rs 200 (Rs) Rs.413 or
Up to 1 Rs. 540 PA Upto 1100 additional 5 % of cost or 10
Distance Tax 1–2 Rs. 2,356 or 762 tax PSPA times of annual tax
(km) 763- 1600 or as above whichever
2–5 Rs. 2,446+Rs. 444 addl OTT 5 % of cost is higher.
Up to 160 Rs. 172 PA Additional Rs. 1524
tax 5 % of cost or 10 or 10 times
576 (ordinary) Rs. 895 1525- 2100
(express) 5–10 Rs. 3,773+Rs. 1,182 times of annual tax of annual tax Goods:
2286
addl tax as above whichever is as above Rs. 540 PSPA
2287- 2500
10–13 Rs. 5,363+Rs. 1,816 higher. whichever is or
3048
addl tax higher. 5 % of cost or 10
160–240 Rs. 196 PA Additional Rs. 3048- 3000
13–16.2 Rs. 78,00+Rs. 2,640 times of annual tax
720 (ordinary) Rs. 1,120 6000
addl tax as above whichever
(express)
> 16.2 Rs. 7,800 + Rs. 2,640 is higher.
5 % of cost or 10
addl tax + Rs.120/addl
240–320 Rs. 245 PA Additional Rs. times of annual
500 Kgs
955 (ordinary) Rs. 1,550 tax as above
(express) whichever is
Tractors
higher.
> 320 Rs. 294 PA Additional Rs. Up to 1 Rs. 375 PA
1,146 (ordinary) Rs. 1,746 MT
(express) 4,573– Rs. 2,700 PA
7,621
Plus for every standing passenger: Rs. 152 7,621– Rs. 3,675 PA
PA 9,500
Contract carriage: > 9,500 Rs. 3,675 PA+Rs 120

per every 500kg or part
Persons Tax thereof.
(No)
Trailers
Up to 25 Rs. 307 PA Additional Rs.
413 Up to 1 Rs. 196 PA Addl. Rs.
MT 96
> 25 Rs. 768 PA Additional Rs. 1–3 MT Rs. 750 PA Addl. Rs.
281
1,032 370
> 3 MT Rs. 1,500 PA Addl. Rs.
738
INDIA

States/ Buses Trucks/Goods Vehicles, Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Union Trailers and Tractors Wheelers
Territories
Punjab (As Stage Carriage Basis: GVW 2% of value Contract Carriage: Passengers: Rs.
on 31 March Ordinary Buses- Rs.2.25 per km per day Value of Lump sum of motor Maxi and Motor 400 PSPA
2007) Ordinary HV AC Buses (3x2 Seats)- Rs.1.00 Per GVW (87t) Tax (Rs. Pa) Motor tax vehicle Cabs: Rs. 750 PSPA
Km per day Up to 1.2 3,000 Cycle (Rs.)
Integral Coach (2x2 seats buses) – Rs.0.50 per All India Tourist
km per day 1.2–6 4,000 Permits:
6–16.2 5,000 Maxi Cab: Rs. 600
Stage Carriage Buses coming from Other 16.2–25 8,000 per day
Up to 3% of
States:- Motor Cab: Rs. 300
> 25 15,000 15,000 value
Buses countersigned under reciprocal per day
agreements- Rs. 3.70 Per Km per day > 15,000 4% of
Buses not countersigned under reciprocal Permit holders of tractors with value Tourist permit
agreements- Rs. 5.00 Per Km per day trolleys used for commercial vehicles:
purposes within the radius of Maxi and Motor
Mini Buses Rs.30,000 PA. 25km from the place of permit Cabs:
City Bus Service Rs. 60 PSPQ holders residence – AC/ Tax (Rs.
City Buses plying outside Municipal limits Rs.2,000PA. Non-AC PSPA)
Ordinary Bus: Rs. 4.50- per Km per bus per day.
HV AC Buses: Rs. 2.00 per Km per bus per day.
Integral Coach Bus: Re. 1.00 per Km per bus Non-Ac 750
per day.
Contract Carriage AC 500

Tourist Buses:-
Ordinary and Deluxe- Rs.6,000PSPA
Air Conditioned- Rs.5,000PSPA
Integral Coach- Rs. 4,000 PSPA
All India Tourist Permits Ordinary Buses-
Rs.2,000 Per Day Per VehicleDeluxe Buses- Rs.
3,000 Per Day Per Vehicle
Air Conditioned Buses- Rs.4,000 Per Day Per
Vehicle
3. Omni Bus Rs.150 Per day
282
INDIA

States/ Buses Trucks/Goods Vehicles, Trailers Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Union and Tractors Wheelers
Territories
Rajasthan Stage Carriages: Basis: Cost of Vehicle Engine Capacity-LTT Basis: LTT Motor/maxi cab Passenger:
(As on 31 Rs. 15,000 per year+ passenger tax of 4–10% of Cost of Cars & Jeeps: LTT: 11% of cost of Basis: Rs. 300 to
March 0.49% of the cost of chassis plus Rs 8,300 to 25,000 PA+Rs. 4000 vehicle 4–10% of cost of vehicle 800 yearly.
2017) Surcharge 6.25% of original tax. passenger tax vehicle.
Goods:
Contract Carriage: Basis: VC
Rs. 32,000 per year+ passenger tax of 9% of VC
12-24% of the cost of chassis plus
surcharge 6.25% of original tax.
283
INDIA

Territories
Sikkim
(As on 31 Seating Tax (Rs.) Trucks,Trailers and Tractors: Basis: Engine Capacity Basis: Engine Capacity Basis: Seating Not reported
March 2017) capacity PA Basis:GVW Engine TaxR Engine TaxR Capacity
32+1 6,400+ Rs. Capacity s. PA Capacity s. PA Persons TaxRs.
500 other Weight (in TaxRs (cc) (cc) PA
taxes kgs) . PA Up to 80 150 Up to 900 1,500 4+1 1,200
Up to 1470 965 81–170 300 901–1,490 1,800 6+1 1,700
1,805 1,126 171–250 450 10+1 2,700
1,491–2,000 3,000
7,740 6,558 12+1 3,200
> 250 600 > 2,000 4,500 Plus Rs. 300 Other
12,100 12,10 Taxes
8
Plus Rs. 500 Other
Taxes
Tamil Nadu Stage carriage: Rs. 400 PSPQ Basis: RLW LTT 8% on value Cars & jeeps: LTT Passenger:
(As on 31 Surcharge 25% of tax Tourist Taxi LTT: 10% on value
March 2017) Tourist omni buses: seating RLW (in Tax (Rs.) Value Tax Value Tax PPT Rs. 1,400
capacity: kgs) (Rs. (Rs. Goods:
< 35 + 1: Rs. 4,900 for every Up to 3,000 19,200 LTT Lakh) Lakh) RLW (in Tax (Rs.)
square meter of floor area of 3,001– 950 PQ New Vehicles New Vehicles kgs)
the vehicle 5,500 Up to 10 10% of Up to 10% of
>35 + 1: Rs. 3,000 PS PQ 3,000 19,200
5,501– 1,500 PQ value 10 value
LT
9,000 > 10 15% of > 10 15% of
3,001– 950 PQ
9,001– 1,900 PQ value value
5,500
12,000 Old Vehicles
5,501– 1,500 PQ
12,001– 2,100 PQ Up to 8.5% of
9,000
13,000 10 value
9,001– 1,900 PQ
13,001– 2,500 PQ > 10 14.5%
12,000
15,000 of value
12,001– 2,100 PQ
> 15,000 2,500 PQ + 13,000
Meter Taxi: PPT
284
Rs 75 for 13,001– 2,500 PQ
every Rs. 4000 for 5 years
15,000
additional > 15,000 2,500+Rs
250kg and .75 for
part every
thereof. 250kg
and part
thereof in
INDIA
excess of

Tractors:ULW 15,000kg
in weight
ULW (in kgs) Tax (Rs.) laden
Up to 2,500 110 PQ
> 2,500 160 PQ
Trailers
RLW (in kgs) Tax (Rs.)
Up to 3,000 340 LT
3,001–5,500 400 PQ
5,501–9,000 700 PQ
9001–12,000 810 PQ
12,001– 1,010 PQ
13,000
13,001– 1,220 PQ
15,000
> 15,000 1220+Rs. 50
for every 250
kg and part
thereof in
excess of
15,000kg.
285
INDIA

States/ Union Buses Trucks/Goods Vehicles, Trailers Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Telangana Stage Carriage Trucks: Basis: LW OTT OTT OTT Autos
(As on 31 March (SRTC buses) LW (kg) Tax (Rs.) 9% of VC; 9% of VC; VC Tax Passenger:
2017) APSRTC Moffusil Up to 300 404 14% in case of 14% in case of (Rs.) 4 seater: Rs. 110
services: 7% of second vehicle. second vehicle. Below 12% Per vehicle PQ
12,000– 2,967
Gross Traffic . 10 lakh of VC 6 seater: Rs. 200
15,000
Earnings. > 10 14% PSPQ
> 15,000 Rs. 2,967 + Rs.
Urban services: 5% lakh of VC
66 for every
on Gross Traffic Goods:
250kg in excess
Earnings. < 1,000 KgsRs. 510
of 15,000 kgs
Private – : 1,000–1,500kg Rs.
Town Service : Trailers: 750
Ordinary services: LW (kg) Tax (Rs.) 1,500 to 3,000kg
Rs. 330 to Rs. 660 Up to 762 230 Rs. 850 PQ
(on daily km)
3,048 to 690
Express services:
4,000
Rs. 822.
> 4,000 Rs. 345 + Rs. 40
Moffusil Services:
for every 250kg
Ordinary services:
PQ
Rs. 441 to Rs.948
(on daily km)
Express Tractors:
services:Rs 1,092 LW (kg) Tax (Rs.)
to Rs. 3,500 (on Up to 762 230
daily km)
Contract Carriage 3,048 to 690
All India Tourist 4,000
Permits – Rs. 3,675 > 4,000 Rs. 690 + Rs. 80
PSPQ for every 250kg
State-wide Permits
– Rs. 2,625 PSPQ
District Wide
Permits – Rs. 1,207
PSPQ
Idle Contract
286
Carriage – Rs. 850
PSPQ
INDIA

States/ Union Buses Trucks/Goods Vehicles, Trailers Two Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3 Wheelers
Tripura Trucks: Rs. 5250 PA Seating capacity more than 5 Passengers: seating capacity
(As on 31 March Seat Tax(Rs. PA) OTT(for 15 Cars: OTT for 15 persons up to 3 Rs. 180 PA
2017) 8–26 510 for 8 seats RLW (kg) Tax PA (Rs.) years) yrs. Rs. 480 PA + Rs. 50 for every seating capacity up to 5 Rs. 480
+ Rs. 60 for Up to 3,000 600 Moped: up addl. seat PA
every addl. to 80cc Rs VC(L Tax(R Goods: RLW up to 1,000kg Rs.
seat 3,001– 900 1,000 akh) s) 125 PA
27– 1,700 for 27 5,560 Motorcycle: 3 4,100
52 seats + Rs. 50 5,561– 1,620 VC up to 1 3–5 4,800
for every addl. 7,500 lakh Rs. 5–10 6,900
seat 7,501– 2,625 2,200. 10– 7,550
12,000 VC > 1 lakh 15
12,001– 5,250 Rs. 2,650 > 15 8,250
16,200
> 16,200 6,560+Rs.25 for Jeeps:
every addl 100kg Seating capacity
Trailers: First 500 kg Rs. 625 + Rs. up tp 5 persons
200 for every addl 250 kg Rs. 480 PA.
RLW (kg) Tax PA (Rs.) Seating capacity

Up to 3,000 600 more than 5
persons
3,001– 900
Rs. 480 PA + Rs.
5,560
50 for every addl.
5,561– 1,620
seat
7,500
7,501– 2,625
12,000
12,001– 5,250
16,200
>16,200 6,560+Rs.25 for
every addl 100kg
Tractors (for agriculture use): ULW

upto 500 kgs& above: Rs. 500 and
287
Rs. 200 for every addl. 250kg.
Trailers (for agriculture use): ULW
up to 500kg & above: Rs. 625 and
Rs. 200 for every addl. 250kg.
INDIA

States/ Union Buses Trucks/Goods Vehicles, Trailers Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3 Wheelers
Territories and Tractors
Uttarakhand Trucks: OTT OTT Basis: Seating capacity Passengers:
(As on 31 March Contract Carriage: with Rs. 230 per tonne PQ VC( Tax VC( Tax
2017) seating capacity >12 Rs. Rs. 850 per tonne PA Rs (% Rs (% of Seats Tax Rs. PQ
100 per month Lakh of Lakh Vc) Seats Tax Rs. PA
Trailers: s) Vc) s)
Stage Carriage: Rs.230 per metric ton PQ Up to 5 430
Distance Tax Rs.1,800 per metric ton PA 3+1 730
up to Rs/Seat Up to 12 510 6+1 845
Up 6 Up 6
1,500 Km 7+1 1,700
to to 10
covered in Tractors:
10
1 month Rs.500 per metric ton PQ
Rs.1,800 per metric ton PA > 10 8 >10 8 Goods:
Plain 85 Rs. 1,000/MT PA
Routes Plus Rs. 400 Plus Rs.
Hilly 95 Agricultural tractors are exempted Green Tax Rs. 1,0000/t (OTT)
1200 Green
Routes for Tax. Tax
Above 1,500 Km for
each extra Km
additional Rs. 0.04 per
seat/Km
288
INDIA

Uttar Pradesh
(As on 31 March Up to 5 years old: Trucks/Trailers: Basis: OTT OTT Rs. 660 PSPQ Passengers:
2017) Rs. 127 PSPM GVW 7% of vehicle or Rs. 2,350 PSPA Rs. 600 PSPA
Rs. 380 PSPQ Rs. 242 PQ per tonne or cost [cost not Non AC: 7% of VC OTT Rs. 5,400
Rs.1,380 PSPA part thereof more than Rs. AC vehicle cost up PS(optional)
>5–10 years old: Rs. 893 PA per tonne or 40,000/-/ to 10 Lacs: 8% of
Rs. 132 PSPM part thereof. VC Goods tax: Rs. 850 per
Rs. 397 PSPQ Agriculture trailers are OTT 10% of AC vehicle cost tonne PA or part thereof.
Rs.1,438 PSPA exempted from tax vehicle cost more than 10 Lacs: OTT Rs. 7,600 per tonne
>10 years old: [cost more than 10% of VC or part thereof.
Rs. 138 PSPM Tractors: Basis: ULW Rs. 40,000/-/
Rs. 414 PSPQ Rs. 525 PQ per tonne or
Rs.1,495 PSPA part thereof
Rs. 1,890 PA per tonne or
U.P.S.R.T.C. Buses part thereof.
Age MVT & PT (Rs.) Agriculture tractors are
(years) exempted from tax
MVT Rs. 58
0–2 PSPQ or Rs. 230 PSPA plus
PT Rs. 600 PSPM or
Rs.1,800PSPQ or
Rs.6,500PSPA
MVT Rs. 58 PSPQ or Rs. 230
2–4 PSPA plus PT Rs. 500 PSPM
or Rs.1,500PSPQ or
Rs.5,400PSPA
4–6 MVT Rs. 58 PSPQ or Rs. 230
PSPA plus PT Rs. 400 PSPM
or Rs.1200 PSPQ or Rs.4,800
PSPA
>6 MVT Rs. 58 PSPQ or Rs. 230
PSPA plus PT Rs. 150 PSPM
or Rs.450PSPQ or Rs.1,600
PSPA
289
Under Contract to U.P.S.R.T.C. Buses
MVT Rs. 58 PSPQ or Rs. 230 PSPA plus PT
Rs. 450 PSPM or Rs.1,350 PSPQ or
Rs.5,000 PSPA
INDIA

States/ Union Buses Trucks/Goods Vehicles, Trailers and Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Territories Tractors Wheelers
West Bengal Basis: Seating Trucks: Basis: GVW (Annual) LTT
(As on 31 Capacity PQ GVW (Kg) Annual Rate of Engine Tax (Rs.) MVT (LTT): Up to 5 seats Passenger:
March 2017) Tax(Rs.) Capacity Up to 900 cc: 10% of VV or Rs.1,600 PA Up to 4 seats Rs.
Stage Up to 2,000 600 (cc) Rs. 40,000 whichever is 660 PA
Carriage(ordinary 2,000–3,500 1,050 higher. Note: A rebate of Rs. Special tax for e-rickshaw:
) 80 1,800 or 10,000/- on LTT shall be AC Rs. 3,000/- Up to 4 seats Rs.
Rs125 for each 3,500–5,500 2,100 6% of allowed to Non-AC vehicle 660 PA
seat+10% of 5,500–7,000 2,850 value(whi having engine capacity up to
quarterly total tax 7,000–9,000 3,450 chever is 800 CC. Goods:
as additional tax. 9,000–12,000 5,550 higher) 900 cc to 1,490 cc: 10% of GVW up to 2,000kg
12,000–14,000 7,500 80–160 3,600 or VV or Rs. 55,000 whichever is Rs. 600 PA
9% of higher.
14,000–15,000 8,250 value ( 1,490 cc to 2,000 cc: 10% of
15,000–16,250 9,300 whicheve VV or Rs. 80,000 whichever is
> 16,250 Rs. 9,300/- plus Rs. r is higher.
150 for every addl. higher) > 20,00 cc: 10% of VV or Rs.
250kg + 50% of > 60 5,800 or 1, 00,000 whichever is higher.
annual tax 10% of
value
(whichev
Trailers er is
GVW(kg) Annual Rate of higher)
Tax(Rs.)
Up to 2,000 Rs. 1,750
2,000–4,000 Rs. 2,350
4,000–6,000 Rs. 3,025
6,000–8,000 Rs. 3,925
8,000–10,000 Rs. 5,350
10,000–12,000 Rs. 7,450
12,000–13,000 Rs. 8,875
13,000–14,000 Rs. 9,925
290
14,000–15,000 Rs. 10,925
> 15,000 Rs.10,975 + Rs. 200/-

for every addl. 250kg.
INDIA

Tractors:
ULW (Kg) Annual Rate of
Tax(Rs.)
500–2,000 1,600+70 for every
additional 250kg.
2,000–4000 2,200+100 for every
additional 250kg.
4,000–8,000 3,430 + 350 for
every additional
250kg.
> 8,000 1,1830 + 400 for
every additional
250kg.
291
INDIA

States/ Buses Trucks/Goods Two Wheelers Cars/Jeeps Taxi/ Cab Auto rickshaws/ 3
Union Vehicles, Trailers and Wheelers
Territories Tractors
Andaman Rs. 100 PA Trucks and Tractors: Rs. 25 PA Rs. 60 PA Rs. 75 PA Passenger &
and Nicobar Rs. 150 PA Goods: Rs.60
Islands (As
on 31 March
2017)
Chandigarh Basis: Seating capacity GVW Up to 3t OTT 6% (OTT)
(As on 31 Up to 12+1 OTT 6% of of cost of value. Value of Tax Value of Tax OTT Passenger: 6% of
March 2017) cost of value Motor Motor (15 years) 6% of cost of vehicle cost
13+1 and above seats GVW>6t Rs. 3,000 PA Vehicle Vehicle
Rs. 200 PSPA Up to 3% of VC (Rs) Goods:
(Maximum Rs. 4,200) GVW> 6t to 16.2t Rs. Rs. 1 Up to 20 6% of cost of 6% of cost
5,000 PA lakh lakh motor vehicle
Rs. 1 4% of VC > 20 lakh 8% of cost of
GVW> 16.2t to 25t Rs. lakh up motor vehicle
7,000 PA to Rs. 4
Lakh
GVW >25t Rs. 10,000
> Rs. 4 5% of VC
PA.
Lakh
Dadar and Basis: Seating capacity Trucks: Basis RLW Basis: Vehicle value. Other than diesel vehicles: 2.5 Basis: Seating capacity Passenger:
Nagar Haveli Annual tax: LTT % of VC. Basis: Seating
(As on 31 Vehicles carry more Rs. 25 PA for every Indian vehicles: 2.5% 5% for imported vehicles. Up to 4 passengers: Rs. 400 PA capacity-
March 2017) than 9 passengers: Rs. 100kg of RLW Imported vehicles: 5% Up to 4 seats Rs.
850 + Rs. 80 per Diesel vehicles: LTT 4 to 9 passengers: Rs. 400 PA + 400 PA
additional seat in VC (Rs. Tax Tax Rate Rs. 90 per additional seat
addition to 9 Lakh) Rate for
passengers. Imported
Vehicles
Up to 2.5% 5%
10 of VC
> 10 3% of 6%
292
VC
INDIA

Territories
Daman & Diu Passenger Tax: Rs. 1.50 Trucks: Basis: Weight Basis: Passengers Vehicle: Basis: Seating capacity
(As on 31 PSPA per Km of the total unladen Rs. 150 per annum Fuel Used % of cost of Up to 4 passengers Rs. 400 PA; for additional
March 2017) daily Kms permitted or vehicle seat over four passengers up to 9 Rs. 50; for
Rs. 24 PSPM. Weight Tax PA OTT: every additional seat over 9 Rs. 40 PA.
unladen (Rs) 2.5% of the VC. Driven on 2.5% of the
(Kg) other than cost of Goods Vehicle:
diesel vehicle Fuel other than diesel:
< 750 350
Driven on 2.5% of the Rs. 20 PA per 100kg of RLW
750– 450
diesel VC up cost of Diesel: Rs. 25 PA per 100kg of RLW
1200
to 10 Lakh vehicle
1200– 600
Driven on 3% of the Goods tax:
2500
diesel VC cost of Rs.37.50 up to 1,000kg of RLW
2500– 800
above 10 lakh vehicle Rs. 60 for more than 1,000kg of RLW
5000
Over 150
1000kg
or part
thereof in
excess of
5,000kg
293
INDIA

Territories
NCT, Delhi Basis: Seating Capacity Trucks: OTT Basis: VC OTT Basis: VC Basis: Seating Capacity
(As on 31 Petrol/CNG driven Petrol/CNG driven
March 2017) Seating Tax Rs. PA Tonnes Tax Rs. PA VC (Rs.) Tax Petrol/CNG driven
Capacity VC (Rs. lakh) Tax Petrol/CNG driven
Up to 1 665 Up to 2% of
excluding
25,000 VC Up to 6 4% of VC
driver and 1–2 945 Seating Tax Rs. PA
25,000– 4% of
conductor 6–10 7% of VC Capacity
2–4 1,430 40,000 VC
<4 605 > 10 10% of VC (excluding
4–6 1,915 40,000– 6% of driver and
5–6 1,130 60,000 VC
7–18 1,915 6–8 2,375 Conductor)
> 60,000 8% of Diesel driven
> 18 Rs. 1,915 + 8–9 2,865 VC Not more than 305
VC (Rs. lakh) Tax 2
Rs. 280 per
passenger 9–10 3,320 Up to 6 5% of VC 3–4 605
PA > 10 3,320 PA + Diesel driven 5–6 1,130
6–10 8.8% of VC
Rs.470 per VC (Rs.) Tax 7–18 1,915
. addl tonne > 10 12.5% of VC > 18 Rs. 1,915 +
Up to 2.5% of
25,000 VC Rs. 280 per
25,000– 5 % of VC Company Owned Vehicles passenger
Diesel driven 40,000 Petrol/CNG driven
Tonnes Tax Rs. PA 40,000– 7.5% of VC (Rs. lakh) Tax Diesel driven
60,000 VC Seating Tax Rs. PA
Up to 1 832 Up to 6 5% of VC Capacity
> 60,000 10% of
1–2 1,175 VC 6–10 8.8% of VC (excluding
driver and
2–4 1,788 > 10 12.5% of VC Conductor)
Company Owned
4–6 2,394 Vehicles Not more than 305
6–8 2,969 Petrol/CNG driven Company Owned Vehicles 2
Diesel driven 3–4 757
8–9 3,582 VC (Rs. lakh) Tax
VC (Rs.) Tax 5–6 1,413
9–10 4,150 Up to 2.5% of 7–18 2,394
Up to 6 6.3% of VC
> 10 4,150 PA + 25,000 VC > 18 Rs. 2,394 +
6–10 10.9% of VC Rs. 350 per
Rs.588 per 25,000– 5 % of VC
294
addl tonne 40,000 > 10 15.6% of VC passenger
40,000– 7.5% of
60,000 VC
> 60,000 10% of
VC
INDIA

Petrol/CNG driven Company Owned
Tractors: Vehicles
Additional tax payable in Diesel driven
respect of vehicles, if such VC (Rs.) Tax
vehicles are used for drawing Up to 3.1% of
trailers: 25,000 VC
For each Tax Rs. PA 25,000– 6.3 % of
Trailer 40,000 VC
Registere 40,000– 9.4% of
d ULW 60,000 VC
Up to 2t 465 > 60,000 12.5% of
VC
> 2t 925
Diesel driven
For each Tax Rs. PA
Trailer
Registere
d ULW
Up to 2t 582
> 2t 1,157
Note: There is an additional increase of 25% of existing annual rates of taxes levied on Motor Vehicles propelled by the Diesel fuel w.e.f. 29.9.2011
295
INDIA

States/ Buses Trucks/Goods Vehicles, Two Wheelers Cars/Jeeps Taxi/ Cab
Union Trailers and Tractors
Territories
Puducherry Stage Carriage: Basis RLW Basis: Engine Capacity Basis: ULW
(As on 31 Urban: Rs. 150 PSPQ RLW (kg) Rs. More than 4 Passengers Tax
March 2017) Intra-State: Rs. 260 PSPQ up to 3,000 2,000PA Engine Tax ULW (kg) Tax (Rs.) up to 6 Up to 3
Inter-State Ordinary: Rs. 360 5,500 800 PQ Capacity persons passengers:
Up to Rs. 550 PA / Rs.
PSPQ 9,000 1,200 PQ (cc) including Rs. 200PA/Rs.
700 4,800 LTT
Inter-State Express: Rs. 370 driver: 1,000 for 5 years
12,000 1,700 PQ Up to 55 Nil 700– Rs. 710 PA / Rs.
PSPQ Rs. 900 PA / Up to 4
13,000 2,000 PQ 56–75 Rs. 60 PA Rs. 1,500 6,000 LTT
Rs. 4,500 for passengers:
450 LTT 1,500– Rs. 910 PA / Rs.
Contract carriage: 15,000 2,200 PQ five years Rs 260 PA/ Rs
2,000 8,000 LTT
Persons Rs. > 15,000 Rs.2,200+ 76–170 Rs. 110 PA Rs. 1,300 for 5
13–27 325 PSPQ Rs.200 for 850 LTT 2,000– Rs. 940 PA / Rs. More than 6 years.
every 1000kg 3,000 8,000 LTT up to 10 Goods Tax:
< 54 375 PSPQ > 170 Rs. 160 PA Rs. persons Up to 300kg Rs.
1,200 LTT > 3,000 Rs. 960 PA / Rs. including 2,000 PA
Tractors:
Ordinary contract carriage < 2,500kg ULW: Rs. 120 PQ 8,000 LTT driver: Rs.
(Up to 54 persons): Rs. 450 > 2,500kg ULW: Rs. 150 PQ 4,500 PA
PSPQ Trailers: VC(Rs. Lakh) Tax(Rs.)
LW (kg) Rs. 15–20 7,000 PA More than
Delux contract carriage (Up to up to 3,000 150 PQ 50,000 LTT 10 up to 13
54 persons): Rs. 1,200 PSPQ 3,001–5,500 300 PQ > 20 14,000 PA persons
100,000 LTT including
5,501–9,000 550 PQ
driver: Rs.
9,000– 650 PQ 6,500 PA
12,000
12,001– 800 PQ
13,000
13,001– 1,000 PQ
15,000
> 15,000 Rs.1000+
Rs. 50 for
every 250kg
Andhra Pradesh, Madhya Pradesh and Punjab have not reported information/data regarding Rates of Motor Vehicle Taxes as on 31.3.2017.
296
INDIA

35
ACEA TAX GUIDE 2021
Japan
Chapter prepared by
Kenichi Asaoka
[email protected]
JAIA
Japan Automobile Importers’ Association
5th floor, Shiba Boat Building
3-1-15, Shiba, Minato-ku,
JP — Tokyo 105-0014
T. +81 3 57 65 68 11
F. +81 3 57 65 68 47
www.jaia-jp.org
J A PA N
1 TONNAGE TAX
1.1 WHAT IS TONNAGE TAX?
Tonnage Tax is a national tax related to vehicle weight.
Tonnage Tax consists of a base rate and a provisional rate.
Vehicle type Tax base Total tax (base rate + Base rate (JPY)
provisional rate) (JPY)
Private use Business use Private use Business use
Passenger cars 0.5t/year 4,100 2,600 2,500 2,500
Buses t/year 4,100 2,600 2,500 2,500
Trucks (GVW > 2.5t) 4,100 2,600 2,500 2,500
Trucks (GVW ≤ 2.5t) 3,300 2,600 2,500 2,500
Note: GVW, gross vehicle weight
1.2 REVISIONS
In the tax revision for 2021
The system of eco-car tax incentives is extended for two years from May 2021 to April 2023. The scheme is
switched to one that gives tax incentives, depending on the achievement of the FY 2030 Fuel Efficiency
Standard on condition that the FY 2020 FE Standards are met. The criteria for 2021 are shown below.

298
J A PA N
1.3 ECO-CAR TAX INCENTIVES
Passenger cars with a capacity of 10 persons or less

Applicable only to vehicles newly registered from May 2021 to April 2023.
Vehicle type Environmental criteria Tax rate

Emissions Fuel efficiency
Electric n/a n/a Exempted
Fuel-cell n/a n/a (at initial registration and
Natural gas 2009 + NOx 10% reduction or 2018 n/a first renewal inspection)
Plug-in hybrid n/a n/a
Petrol*** 2005 + 75% reduction or 2030 + 20%
(including petrol hybrid) 2018 + 50% reduction 2030 achieved Exempted
LPG*** 2030 - 10%
(including LPG hybrid) 2030 - 25% 50% reduction*
2030 - 40% 25% reduction*
Diesel 2009 or 2018 2030 + 20% Exempted
(at initial registration and
first renewal inspection)
2020 achieved Exempted
2020 not achieved Exempted (vehicle
registered from May 2021
to April 2022)
No tax reduction (vehicle
registered from May 2022
to April 2023)
Other than above No tax reduction**
* Only base rate is applied
** Total tax rate (base rate and provisional rate) is applied
*** The subjects of tax reduction are limited to those meeting the FY 2020 FE Standards.
Note: LPG, liquefied petroleum gas; NOx, nitrogen oxides

299
J A PA N
Trucks with GVW of 2.5t or less

Vehicle type Environmental requirements Tax rate

Fuel cell n/a n/a (at initial registration and
Natural gas 2009 + NOX 10% reduction or 2018 n/a first renewal inspection)

Petrol 2005 + 75% reduction or 2015 + 25% Exempted
(including petrol hybrid) 2018 + 50% reduction 2015 + 20% 75% reduction*
2015 + 15% 50% reduction*
2015 + 5% 25% reduction*
Trucks with GVW over 2.5t up to 3.5t



(including petrol hybrid) 2018 + 50% reduction 2015 + 10% 75% reduction*
2015 + 5% 50% reduction*
2005 + 50% reduction or 2015 + 15% 75% reduction*
2018 + 25% reduction 2015 + 10% 50% reduction*
Diesel 2009 + NOX and PM 10% reduction 2015 + 15% Exempted
(including diesel hybrid) or 2018 2015 + 10% 75% reduction*
2015 + 5% 50% reduction*
2009 2015 + 15% 75% reduction*
2015 + 10% 50% reduction*

300
J A PA N
Buses with GVW of 3.5t or less



(including petrol hybrid) 2018 + 50% reduction 2020 + 5%
2020 achieved 75% reduction*
2005 + 50% reduction or 2020 + 10% Exempted
2018 + 25% reduction 2020 + 5% 75% reduction*
(including diesel hybrid) or 2018 2020 + 5%
2009 2020 + 10% Exempted
2020 + 5% 75% reduction*
Trucks and buses with GVW over 3.5t


Natural gas 2009 + NOX 10% reduction n/a first renewal inspection)

(including diesel hybrid) or 2016 2015 + 10% 75% reduction*
2015 + 5% 50% reduction*

301
J A PA N
1.4 ASV TAX INCENTIVES FOR HDV
Trucks, tractors and buses with GVW over 3.5t equipped with a Collision Mitigating Brake (CMB) system, a
Stability Control System (SCS), Lane Departure Warning (LDW) system and Blind Spot Information System
(BSIS)
Applicable only to vehicles newly registered from April 2021 to October 2021.
Vehicle type Equipped with GVW (t) Tax rate

Trucks CMB, SCS, LDW 3.5 < GVW ≤ 20 50% reduction
CMB, SCS, LDW and 8 < GVW ≤ 20 75% reduction
BSIS
BSIS > 8t 25% reduction (April 2021 to April April 2024)
Buses CMB, LDW ≤5 50% reduction
CMB, SCS, LDW 5 < GVW ≤ 12 50% reduction
Tractors BSIS > 8t 25% reduction (April 2021 to April 2024)
2 AUTOMOBILE TAX ENVIRONMENTAL PERFORMANCE LEVY
2.1 WHAT IS THE ENVIRONMENTAL PERFORMANCE LEVY?
The Environmental Performance Levy is a local tax that was introduced in conjunction with the Consumption
Tax hike to 10% (October 2019) and applicable to acquisition of a kei-car, small-sized and standard sized
vehicles.
The payer of the levy (the person who acquires the vehicle), the taxable object (new and used vehicles), the
tax base (90% of the vehicle’s acquisition price), the exemption point (JPY 500,000) and the payment method
are expected the same as in the case of the Automobile Acquisition Tax.
The exceptions for barrier-free taxis and buses and the exceptions for large vehicles equipped with advanced
safety technologies applicable to Automobile Acquisition Tax1 have been carried over to the Automobile Tax
Environmental Performance Levy.
2.2 REVISIONS
The system of Environmental Performance Levy is extended for two years from April 2021 to March 2023. The
scheme is switched to one that gives tax incentives, depending on the achievement of the FY 2030 Fuel
Efficiency Standard on condition that the FY 2020 FE Standards are met.
2.3 TAX RATE
Tax rates applicable to private-use vehicles range from 0 to 3% and the same to business-use vehicles from 0
to 2%, both depending on the environmental performance.
For one year from October 2019 to September 2020, the rate of the Automobile Tax Environmental
Performance Levy on private-use passenger cars is reduced by 1 percent as a measure against the last-minute
1
The Automobile Acquisition Tax was abolished as of the end of September 2019.

302
J A PA N
increase in demand before the Consumption Tax hike and reactionary declines. The above 1 percent reduction
was decided to extend until December 2021, as an emergency economic measure.
Private use passenger cars with a capacity of 10 persons or less
Applicable only to vehicles newly registered from April 2021 to March 2023.

Emissions Fuel efficiency April 2021 to January 2022 April 2022 to
December 2021 to March 2022 March 2023
Electric n/a n/a Exempted Exempted Exempted
Fuel cell n/a n/a
Natural gas 2009 + NOX 10% n/a
reduction or 2018
Diesel* 2009 or 2018 2030 – 15%
2030 – 25%
2030 – 40%
2020 not achieved 3%
Petrol* 2005 + 75% reduction 2030 – 15% Exempted
(including petrol hybrid) or 2018 + 50% 2030 – 25% 1% 1%
LPG* reduction 2030 – 40% 1% 2% 2%
(including LPG hybrid)
Other than above 2% 3% 3%

*The subjects of tax reduction are limited to those meeting the FY 2020 FE Standards. Diesel vehicles will be applied from April 2022.

303
J A PA N
Business use passenger cars with a capacity of 10 persons or less


Emissions Fuel efficiency April 2021 to April 2022 to
March 2022 March 2023
Electric n/a n/a Exempted Exempted
Fuel cell n/a n/a
Natural gas 2009 + NOX 10% n/a
reduction or 2018
Diesel* 2009 or 2018 2030 – 15%
2030 – 25%
2030 – 40%
2020 not achieved 2%
Petrol * 2005 + 75% reduction 2030 – 15% Exempted
(including petrol or 2018 + 50% 2030 – 25%
hybrid) reduction 2030 – 35% 0.5% 0.5%
LPG* 2030 – 40% 1% 1%
(including LPG hybrid)
Other than above 2%
*The subjects of tax reduction are limited to those meeting the FY 2020 FE Standards. (Diesel vehicles will be applied from April 2022)
Private use trucks with GVW of 2.5t or less


Fuel-cell n/a n/a
Natural gas 2009 + NOX 10% reduction n/a
or 2018
Petrol (including petrol 2005 + 75% reduction or 2015 + 25%
hybrid) 2018 + 50% reduction 2015 + 20% 1%
2015 + 15% 2%
Other than above 3%

304
J A PA N
Business use trucks with GVW of 2.5t or less


Fuel cell n/a n/a
or 2018
hybrid) 2018 + 50% reduction 2015 + 20% 0.5%
2015 + 15% 1%
Private use buses with GVW of 2.5t or less


Fuel cell n/a n/a
or 2018
hybrid) 2018 + 50% reduction 2020 achieved 1%
2015 + 15% 2%
Other than above 3%
Business use buses with GVW of 2.5t or less


Fuel cell n/a n/a
or 2018
hybrid) 2018 + 50% reduction 2020 achieved 0.5%
2015 + 15% 1%
Other than above 2%

305
J A PA N
Private use trucks with GVW over 2.5t and up to 3.5t


Fuel cell n/a n/a
Natural gas 2009 + NOX 10% reduction or 2018 n/a
Petrol (including 2005 + 75% reduction or 2015 + 20%
petrol hybrid) 2018 + 50% reduction 2015 + 15%
2015 + 10% 1%
2015 + 5% 2%
2018 + 25% reduction 2015 + 15% 1%
2015 + 10% 2%
2015 + 5% 3%
Diesel (including 2009 + NOX and PM 10% reduction 2015 + 20% Exempted
diesel hybrid) or 2018 2015 + 15%
2015 + 10% 1%
2015 + 5% 2%
2009 2015 + 20% Exempted
2015 + 15% 1%
2015 + 10% 2%
Other than above 3%

306
J A PA N
Business use trucks with GVW over 2.5t up to 3.5t


Fuel cell n/a n/a
Petrol (including 2005 + 75% reduction or 2015 + 20%
2015 + 10% 0.5%
2015 + 5% 1%
2018 + 25% reduction 2015 + 15% 0.5%
2015 + 10% 1%
2015 + 5% 2%
Diesel (including 2009 + NOX and PM 10% reduction 2015 + 20% Exempted
2015 + 10% 0.5%
2015 + 5% 1%
2009 2015 + 20% Exempted
2015 + 15% 0.5%
2015 + 10% 1%
Other than above 2%

307
J A PA N
Private use buses with GVW over 2.5t and up to 3.5t


Fuel cell n/a n/a
Petrol (including 2005 + 75% reduction or 2020 achieved
2015 + 10% 1%
2015 + 5% 2%
2005 + 50% reduction or 2020 achieved Exempted
2018 + 25% reduction 2015 + 15% 1%
2015 + 10% 2%
2015 + 5% 3%
Diesel (including 2009 + NOX and PM 10% reduction 2020 achieved Exempted
2015 + 10% 1%
2015 + 5% 2%
2009 2020 achieved Exempted
2015 + 15% 1%
2015 + 10% 2%
Other than above 3%

308
J A PA N
Business use buses with GVW over 2.5t up to 3.5t


Fuel cell n/a n/a
Petrol (including 2005 + 75% reduction or 2020 achieved
2015 + 10% 0.5%
2015 + 5% 1%
2005 + 50% reduction or 2020 achieved Exempted
2018 + 25% reduction 2015 + 15% 0.5%
2015 + 10% 1%
2015 + 5% 2%
Diesel (including 2009 + NOX and PM 10% reduction 2020 achieved Exempted
2015 + 10% 0.5%
2015 + 5% 1%
2009 2020 achieved Exempted
2015 + 15% 0.5%
2015 + 10% 1%
Other than above 2%
Private use trucks and buses with GVW over 3.5t


Fuel cell n/a n/a
Diesel 2009 + NOX and PM 10% reduction or 2015 + 10%
(including diesel hybrid) 2016 2015 + 5% 1%
2015 achieved 2%
Other than above 3%

309
J A PA N
Business use trucks and buses with GVW over 3.5t


Fuel cell n/a n/a
Diesel 2009 + NOX and PM 10% reduction or 2015 + 10%
(including diesel hybrid) 2016 2015 + 5% 0.5%
2015 achieved 1%
Other than above 2%
2.4 ASV TAX INCENTIVES FOR HDV
Trucks, tractors and buses with GVW over 3.5t equipped with a Collision Mitigating Brake (CMB) system, a
Stability Control System (SCS), Lane Departure Warning (LDW) system and Blind Spot Information System
(BSIS).
Applicable only to vehicles newly registered from April 2021 to October 2021.
Vehicle type Equipped with GVW (t) Tax exemption amount from acquisition value (JPY)
Trucks CMB, SCS, LDW 3.5 < GVW ≤ 20 3.5m
CMB, SCS, LDW and 8 < GVW ≤ 20 5.25m
BSIS
BSIS Over 8t 1.75m (April 2021 to March 2023)
Buses CMB, LDW ≤5 3.5m
CMB, SCS, LDW 5< GVW ≤12 3.5m
Tractors BSIS Over 8t 1.75m (April 2021 to March 2023)
3 AUTOMOBILE TAX ENGINE DISPLACEMENT LEVY
The Automobile Tax Engine Displacement Levy is a local tax levied on ownership of motor vehicles.
Taxpayers are the owners as of 1 April and the tax is paid in advance for one year until next March by May
every year. In case of purchase in mid-year, taxes will be paid on a prorated monthly basis from the following
month of registration until next March.
3.1 REVISIONS

The greening exception (lighter levy) is extended from April 2021 to March 2023, and clean diesel, petrol, LPG
vehicles are excluded from the subject.

310
J A PA N
3.2 TAX RATE
Passenger vehicles
Engine Private use (JPY) Business use

displacement (l) Newly registered until September Newly registered from October 2019 (JPY)
2019
≤1 29,500 25,000 7,500
1–1.5 34,500 30,500 8,500
1.5–2 39,500 36,000 9,500
2–2.5 45,000 43,500 13,800
2.5–3 51,000 50,000 15,700
3–3.5 58,000 57,000 17,900
3.5–4 66,500 65,500 20,500
4–4.5 76,500 75,500 23,600
4.5–6 88,000 87,000 27,200
>6 111,000 110,000 40,700
Trucks
Maximum load (t) Private use (JPY) Business use (JPY)
≤1 8,000 6,500
1–2 11,500 9,000
2–3 16,000 12,000
3–4 20,500 15,000
4–5 25,500 18,500
5–6 30,000 22,000
6–7 35,000 25,500
7–8 40,500 29,500
>8 40,500 + 6,300/t 29,500 + 4,700/t
Buses
Capacity (persons) Private use (JPY) Business use (JPY)
Route bus Other than route bus
≤ 30 33,000 12,000 26,500
31–40 41,000 14,500 32,000
41–50 49,000 17,500 38,000
51–60 57,000 20,000 44,000
61–70 65,500 22,500 50,500
71–80 74,000 25,500 57,000
> 80 83,000 29,000 64,000

311
J A PA N
3.3 GREENING EXCEPTION OF AUTOMOBILE TAX
The greening exception of Automobile Tax was introduced in 2001 as a special measure of lighter or heavier
levy of Automobile Tax depending on the burdens on the environment caused by motor vehicles.
Private use of passenger cars with a capacity of 10 persons or less (April 2021 to March 2023)

Electric n/a n/a 75% reduction
Fuel-cell n/a n/a
Diesel No tax reduction
Petrol (including petrol hybrid)
LPG (including LPG hybrid)
Note: LPG, liquefied petroleum gas
Trucks and buses with GVW of 2.5t or less (April 2021 to March 2023)

Fuel cell n/a n/a
Trucks and buses with GVW of over 2.5t up to 3.5t (April 2021 to March 2023)

Fuel cell n/a n/a
Trucks and buses with GVW over 3.5t (April 2021 to March 2023)

Fuel cell n/a n/a
The above criteria are set by the central government. Local governments may set their own additional criteria.

312
J A PA N
Criteria for an increase in Automobile Tax
Vehicle type Ongoing scheme (April 2021 to March 2023)

Petrol or LPG (13 years or older) 15% tax increase (the tax increase will remain at 10% for trucks and buses)
Diesel (11 years or older)
Note: The additional levy is not applicable to electric vehicles, natural gas vehicles, methanol vehicles, public transport buses or trailers
From April 2021, an additional levy will be payable in accordance with the age of the vehicle as set out below:
Vehicle type Year/month of initial registration of the vehicle inspection certificate

Petrol/LPG Any year/month between April 2007 and March 2008
(13 years or older)
Diesel (11 years or older) Any year/month between April 2009 and March 2010
Note: LPG, liquefied petroleum gas
4 MINI-VEHICLE (KEI CAR) TAX
Mini-Vehicle Tax is a local (municipal) tax levied on ownership of a mini-vehicle, or kei car.
Definition of a mini-vehicle (kei car)
Maximum length (m) Maximum width (m) Maximum height (m) Maximum displacement (cc)
3.4 1.48 2.0 660
4.1 REVISIONS
The greening exception (lighter levy) is extended from April 2021 to March 2023, and petrol vehicles are
excluded from the subject.
Vehicle type Environmental criteria Vehicle category/purpose of Tax rate (JPY)

Emissions Fuel efficiency use 2016 onward
Electric n/a n/a Passenger car Private use 2,700
Business use 1,800
Truck Private use 1,300
Business use 1,000
Natural gas 2009 + NOX 10% n/a Passenger car Private use 2,700
reduction Business use 1,800
Truck Private use 1,300
Business use 1,000
Other than above No reduction

313
J A PA N
4.2 MINI-VEHICLE TAX RATES
From 2015 (payable from April 2016)
Vehicle type Private use (JPY) Business use (JPY)

Mini-vehicle (four-wheeled)* Passenger vehicle 10,800 6,900
Truck 5,000 3,800
Small-sized motorcycle (over 250cc) 6,000
Mini-motorcycle (125-250cc) 3,600
* Applicable only to new vehicles
4.3 MINI-VEHICLE TAX ENVIRONMENTAL PERFORMANCE LEVY
In October 2019, when the Consumption Tax rate was raised to 10 percent, the environmental performance
levy was also introduced to the Mini Vehicle Tax. The criteria for the Mini-Vehicle Tax Environmental
Performance Levy is shown in the table below. Tax rates range from 0 to 2%, depending on the environmental
performance.
For one year between October 2019 and September 2020, the rates applicable to private-use passenger cars
is reduced by 1 percent as a measure against the last-minute increase in demand before the Consumption Tax
hike and subsequent reactionary declines. The above 1 percent reduction was decided to extend until
December 2021, as an emergency economic measure.
Private use passenger cars (applicable only to vehicles newly registered from April 2021)
Emissions Fuel efficiency April 2021 to January 2022 to
December 2021 March 2023
Electric n/a n/a Exempted Exempted
Natural gas 2009 + NOX 10% reduction or n/a
2018
Petrol* 2005 + 75% reduction or 2030 – 25%
(including petrol 2018 + 50% reduction 2030 – 40% 1%
hybrid)
Other than above 1% 2%
* The subjects of tax reduction are limited to those meeting the FY 2020 FE Standards.
Business use passenger cars (applicable only to vehicles newly registered from April 2021)
Natural gas 2009 + NOX 10% reduction or n/a
2018
Petrol (including petrol 2005 + 75% reduction or 2030 – 25%*
hybrid) 2018 + 50% reduction 2030 – 40%* 0.5%
2030 – 45% 1%
Other than above 2%
* The subjects of tax reduction are limited to those meeting the FY 2020 FE Standards.

314
J A PA N
Private use trucks (applicable only to vehicles newly registered from April 2021)
hybrid) 2018 + 50% reduction 2015 + 20% 1%
Other than above 2%
Business use trucks (applicable only to vehicles newly registered from April 2021)
Petrol 2005 + 75% reduction or 2015 + 25%
(including petrol hybrid) 2018 + 50% reduction 2015 + 20% 0.5%
2015 + 15% 1%
Other than above 2%

315
36
ACEA TAX GUIDE 2021
Russia
Chapter prepared by
Olga Zueva
[email protected]
AEB
Association of European Businesses
Butyrsky Val 68/70, Building 1
RU — 127055 Moscow
T. +7 495 234 27 64
Editing supported by
Hyundai Motor Russia & CIS HQ
www.aebrus.ru
RUSSIA
1 IMPORT DUTIES
Since 1 September 2019, in accordance with the decision of the Council of the Eurasian Economic
Commission (EEC), new duties on vehicles imported into the territory of the Eurasian Economic Union
(EAEU) are in force.
The tariff for vehicles has been lowered under the World Trade Organisation (WTO) obligations of the
Russian Federation and have reached the final bound rate in 2019.
Since 1 September 2019, the following import duties on passenger vehicles are in place for legal entities:
New passenger vehicles (less than five years old)
Vehicle type Tariff, ad valorem (%)
Petrol engine displacement < 2,800cm³ and all diesel engines 15.0
Petrol engine displacement > 2,800cm³ (not SUV) and SUV with petrol engine 12.5
displacement > 3,500cm³
SUV with petrol engine displacement 2,800cm³– 3,500cm³ 15.0
SUV with petrol engine displacement > 4,200cm³ 10.0
In May 2020, the Council of the Eurasian Economic Commission introduced a 0% import duty on new
electric vehicles (BEV only) until 31 December 2021. For vehicles five to seven years old, customs duty is
realised at a specific rate depending on the engine’s size:
Engine displacement (cc) Tariff, ad valorem (%) Tariff (€/cm³) no less than
Petrol engines
≤ 1,000 20.0 0.36
1,001–1,500 20.0 0.40
1,501–1,800 20.0 0.36
1,801–3,000 20.0 0.44
> 3,000 20.0 0.80
For vehicles older than seven years old, customs duty is realised at a specific rate depending on the engine’s
size:
Engine displacement (cc) Tariff (€/cm³)
Petrol engines
≤ 1,000 1.40
1,001–1,500 1.50
1,501–1,800 1.60
1,801–3,000 2.20
> 3,000 3.20
The customs duties payable by individuals importing passenger vehicles differ from those payable by legal
entities. Parameters that are taken into account when calculating the customs duty are the vehicle’s value,
engine size, engine type, the age of the vehicle. The following rates are applied:
New vehicles (less than three years old)
Vehicle value (€) Tariff, ad valorem (%) Tariff (€/cc)
≤ 8,500 54.0 2.50
8,501–16,700 48.0 3.50
16,701–42,300 48.0 5.50
42,301–84,500 48.0 7.50
84,501–169,000 48.0 15.00
> 169,000 48.0 20.00

317
RUSSIA
Vehicles between three to five years old

Engine size (cc) Tariff (€/cm³)
Petrol
≤ 1,000 1.50
1,001–1,500 1.70
1,501–1,800 2.50
1,801–2,300 2.70
2,301–3,000 3.00
> 3,000 3.60
Vehicles older than five years old

Engine size (cc) Tariff (€/cm³)
Petrol
≤ 1,000 3.00
1,001–1,500 3.20
1,501–1,800 3.50
1,801–2,300 4.80
2,301–3,000 5.00
> 3,000 5.70
2 EXCISE TAXES
2.1 BACKGROUND
• Excise tax is an indirect tax of federal level, imposed on consumer goods (eg tobacco, alcoholic
beverages, motor fuels, passenger cars (PCs) and motorcycles)
• Excise tax is paid one time by the manufacturer or the importer
• Excise tax is included in the final price of the product
• Excise tax on passenger cars is based on engine power measured in hp (kW)
2.2 CURRENT STATUS AND FUTURE INCREASE PLAN

The excise tax calculation formula is the following:
Excise tax rate × engine power
Excise tax rates in 2019–2023

Engine power (hp) Excise tax rate (RUB/hp)
2019 2020 2021 2022 2023
≤ 90 (≤ 67.5kW) 0.00 0.00 0.00 0.00 0.00
90–150 (67.5kW–112.5kW) 47.00 49.00 51.00 53.00 55.00
150–200 (112.5kW–150kW) 454.00 472.00 491.00 511.00 531.00
200–300 (150kW–225kW) 743.00 773.00 804.00 836.00 869.00
300–400 (225kW–300kW) 1,267.00 1,317.00 1,370.00 1,425.00 1,482.00
400–500 (300kW–375kW) 1,310.00 1,363.00 1,418.00 1,475.00 1,534.00
> 500 (> 375kW) 1,354.00 1,408.00 1,464.00 1,523.00 1,584.00

318
RUSSIA
3 VAT
Sales and imports of vehicles are subject to VAT. As of 1 January 2019, the basic value added tax (VAT)
rate has increased from 18% to 20%.
The collection of VAT is invoice-based. Every vendor (except small businesses, under a special tax regime)
that provides ‘taxable’ goods charges VAT on its output and issues to the buyer a special invoice that
indicates the amount of VAT charged. Buyers who are subject to VAT on their own sales (output tax) can
deduct the input tax from their own VAT liability. The difference between the output tax and input tax is
paid to the government (or a refund is claimed in cases of negative liability).
Since 2008, a special rule for trade-in of vehicles has been available. VAT is levied on the difference between
the sale price and the purchase price (if the transaction is at arm’s length).
VAT is charged on imported vehicles based on the customs value plus customs duty and excise tax. The
import VAT is payable to the customs authorities under the customs clearing procedure and is deductible.
4 TRANSPORT AND LUXURY TAX
4.1 BACKGROUND
• Transport tax is a direct tax of regional level; it is paid each year by car owners, both individuals
and companies
• Tax proceeds are used for road maintenance
• Tax amount differs in Russian regions (reason to make it a regional level tax: real disposable
income and amount of registered vehicles differs in Russian regions)
• Transport tax is based on engine power, measured in hp (kW)
4.2 CURRENT STATUS AND FUTURE INCREASE PLAN

The transport tax calculation formula is:
Tax rate × engine power × ownership period (months of ownership/12)
The tax rate is calculated depending on engine power, hp and it differs by regions and it cannot be 10 times
higher or lower than the base rate provided by the Tax Code at the federal level.
Regions have the right to introduce additional differentiation of the tax rate depending on the vehicle’s age
(applied in several regions) and emission standard (not applied at the moment).
The ‘luxury tax’, applied since 2014, is a special surcharge that has been applied to the transport tax on
passenger vehicles with a price of more than RUB 3 million. The surcharge depends on a vehicle’s average
recommended retail price during the year and its age. The average price is determined by the Ministry of
Industry and Trade (MIT) based on data obtained from car manufacturers and official importers on a
biannual basis. If information from manufacturers and official importers is not available for any reason, it
can be obtained from other sources (eg catalogues). For vehicles subject to the luxury tax, a special
multiplier is added to the transport tax calculation formula.

319
RUSSIA
Example: Transport tax in Moscow in 2021

Engine power (kW) Engine power (ps) Tax rate (RUB/hp)
≤ 73.55 ≤ 100 12.00
> 73.55–91.94 > 100–125 25.00
> 91.94–110.33 > 125–150 35.00
> 110.33–128.7 > 150–175 45.00
> 128.7–147.1 > 175–200 50.00
> 147.1–165.5 > 200–225 65.00
> 165.5–183.9 > 225–250 75.00
> 183.9 > 250 150.00
Example: Transport tax in Novosibirsk region in 2019–2021 based on vehicle’s age (less than 5 years/5–
10 years/more than 10 years)
Engine power (kW) Engine power (hp) Tax rate (RUB/hp)
≤ 73.55 ≤ 100 6.00
> 73.55–110.33 > 100–150 10.00
> 110.33–147.1 > 150–200 30.00/22.50/15.00
> 147.1–183.9 > 200–250 60.00/45.00/30.00
> 183.9 > 250 250.010
Luxury tax multiplier for transport tax

Car age (years)
Car price (RUB)
Up to 3 Up to 5 Up to 10 Up to 20
3–5 1.1 ─ ─ ─
5–10 ─ 2 ─ ─
10–15 ─ ─ 3 ─
> 15 ─ ─ ─ 3
The list of passenger vehicles which have a price above RUB 3m published by MIT for 2020 is available
via the following link1:
http://minpromtorg.gov.ru/common/upload/docVersions/5e58fca69a6ac/actual/perechen_avtomo
bil_compressed.pdf
There is an ongoing discussion about the potential switch from the hp-based transport tax to the
emission standard-based ecological tax or abolishing it, with a respective increase of the excise tax
on the motor fuel.
1
As of the date of editing, the list for 2021 has not been published yet.

320
RUSSIA
5 DISPOSAL FEE
On 1 September 2012, the Russian Government introduced a disposal (scrappage) fee on vehicles imported
into Russia by adopting Resolution No 870, dated 30 August 2012. Local manufacturers and importers of
vehicles from other countries of the Customs Union were exempted from that fee if particular conditions
were met. After numerous discussions with the WTO and the EU, the approach was changed and a new
resolution, Resolution No 1291, dated 26 December 2013, was adopted. According to the new resolution,
from 8 January 2014 the disposal fee is payable by all importers and local manufacturers without any
exemptions.
The disposal fee is paid to the state budget and is formally intended for funding the creation and
development of an end-of-life vehicles (ELV) system in Russia (state support for dismantlers and recyclers).
Payers of the fee are not responsible for the subsequent recycling of vehicles. The rates of the disposal fee
for passenger vehicles differ depending on the vehicle’s engine displacement. The rates for used vehicles
are significantly higher, in order to discourage imports of such vehicles.
Since its introduction in 2012, the disposal fee has been increased three times (as of February 2021).
Disposal fee rates (as of February 2021)
Engine (cc) Coefficient new vehicles Coefficient used vehicles (older
than three years)
Electric engine, excl hybrids 1.63 6.1
< 1,000 2.41 6.15
1,000–2,000 8.92 15.69
2,000–3,000 14.08 24.01
3,000–3,500 12.98 28.5
> 3,500 22.25 35.01
Vehicles imported by individuals for 0.17 0.26
personal use, regardless of engine size
The above coefficients are applicable to the base tariff of RUB 20,000 for passenger vehicles. The base
tariff is expected to be raised by 25% in Q1 of 2021.
The coefficients for calculation of the disposal fee for passenger vehicles imported by individuals for
personal purposes are significantly lower than those for legal entities: 0.17 for new vehicles and 0.26 for
used vehicles. These rates do not depend on the vehicle’s engine displacement.
6 ASSEMBLY LEGISLATION
6.1 DECREE 166

On 29 March 2005, the Russian Government adopted Decree No 166 introducing the notion of ‘Industrial
Assembly’ and setting out conditions under which local automobile manufacturers could qualify for
reduced import duties on imports of components for local assembly of certain vehicles, including
passenger vehicles. At that time, the adoption of the decree was an essential part of the government’s
strategy to rejuvenate the automotive industry through increased investments in local production.
Under the Industrial Assembly Regime, local production included body welding, painting and assembling,
the installation of passenger/cabin compartment equipment, the installation of the power unit, steering,
suspension, exhaust system, electrical equipment and exterior components, and final control testing. In
addition, the investor was required to have entered into a special agreement with the Russian Ministry of
Economic Development.

321
RUSSIA
Local manufacturers that participated in the industrial assembly regime were exempted from import duty
for a large number of major components needed for the assembly of vehicles. For most other components,
the rate of import duty was reduced to 3–5%.
At the beginning of February 2011, the Russian Government adopted new conditions for local
manufacturers, introducing more rigid rules. Under the new conditions, foreign manufacturers can import
parts and components under special conditions (zero or minimal import duties) until the end of 2020. The
main requirements are as follows:
• Production of 300,000 vehicles a year in completely new production facilities or 350,000
vehicles a year in existing facilities, which must be upgraded
• Not less than 30% of vehicles produced must have locally produced engines or gear boxes
• The level of localisation must reach 60% during the first six years
• SKD2 can be used in addition for 5% of vehicles produced during the first three years of an
agreement
• Manufacturers must create research and development centres
The application of Decree No 166 is discontinued from 2015 for the new investment projects and from
2018–2020 for all running projects, both due to Russia’s commitments as a WTO member. The special
reduced tariff for kits and components imported for the purpose of industrial assembly is not available
since 1 July 2018.
6.2 SPECIAL INVESTMENT CONTRACT (SPIC)

SpIC 1.0
In June 2015, the Special Investment Contract (SpIC 1.0) was introduced into Russian law. It constituted a
new contractual framework for investment projects, aimed at attracting investment to establish and
modernise industrial manufacturing in Russia at both federal and regional levels. Under the SpIC, the
government provides an investor with various industrial benefits and preferences and ensures a stable
business climate for the implementation of an investment project. The advantages of the SpIC for an
investor include favourable conditions for product manufacturing and tax preferences, guarantees against
adverse changes in legislation and public procurement benefits. The Ministry of Industry and Trade enters
into a contract on behalf of Russia, along with the regional government of the respective region hosting the
SpIC project.
Main criteria of SpIC 1.0 are the following:
• Capital expenditure (CAPEX) not less than RUB 750 million
• List of suggested incentives, as defined by the Federal Law ‘On the Industrial Policy of the Russian
Federation’, or other legal acts
• List of investor’s obligations
• Characteristics of industrial products to be produced under SpIC
• List of activities of the investment project
• Investment volume
• Results (KPIs) to be achieved under SpIC, including:
o volume (by value) of produced and sold products (annually at the end of the calendar
year and on the termination of the special investment contract);
o amount of taxes scheduled for payment after termination of SpIC;
o local content level in the cost of industrial products manufactured at the termination of
SpIC;
o number of jobs created under the investment project.
2Semi-knocked-down
or incompletely disassembled kit containing parts needed to assemble a vehicle

322
RUSSIA
• Other indicators describing the performance of the obligations assumed by the investor.
Since August 2019, the application for and the signing of new contracts based on SpIC 1.0 is no longer
possible due to the introduction of SpIC 2.0.
SpIC 2.0
From August 2019, the SpIC regulatory framework was amended by introducing the related chapter
into the Federal Law ‘On the Industrial Policy in the Russian Federation’ (SpIC 2.0) and limiting the
application of the initial SpIC regulation (Decree No 708) only to the contracts which have been
already signed or cleared for signing by the SpIC Interdepartmental Commission.
Main criteria of SpIC 2.0 are the following:
• Development and implementation of new technologies, as part of the investment contract.
Lists of technologies for each industry to be developed and adopted by the government as a
by-law
• Competitive selection of SpIC projects (open and closed competitions are possible
depending on the industry)
• Regional government and municipal authorities must be co-signees of SpIC
• Project maximum duration 15 years (invest up to RUB 50 billion), 20 years (invest above
RUB 50 billion)
• Minimum CAPEX threshold removed
• Profit tax incentive extended
• Total amount of state support including tax exemptions limited to 50% of the total investment
• Basic KPIs same as SpIC 1.0
The call for proposals into the list of technologies for SpIC 2.0 was made to all interested stakeholders
in 2019. On 28 November 2020, the Rusian government approved the list, including over 600
promising technologies.
6.3 LOCAL CONTENT REQUIREMENTS (DECREE 719)

In 2015, the Russian government adopted Governmental Decree No 719 ‘On Criteria for Treatment of
Industrial Goods as Goods, with no analogues produced in the Russian Federation’. With regards to the
automotive industry, Decree No 719 defined 12 mandatory technological operations, including body
welding and painting, which should be performed locally, with a gradual introduction of 11 of them by 2017.
In May 2019, major amendments were introduced into Decree No 719 by expanding the list from 12 basic
operations to a highly comprehensive list consisting of 15 component groups (all parts and systems of the
vehicle, including but not limited to body stamping, engine, gearbox, suspension, control units, ADAS 3 ,
HVAC 4 , electric parts, R&D local operations). Carmakers may select components and operations to be
produced or sourced locally, and get credits (points) assigned to each of the items in the new list. From the
date of entry into force of the amendments, a new requirement was set for Special Investment Contracts
which would be applied for and signed after 1 July 2019: during any calendar year of the contract period,
no less than 90% of production output should have the local content level of no less than 7,000 points.
It is expected that the local content points system will become the basis for all existing and eventual
incentives available for the local carmakers.
3 Advanced driver-assistance systems

4 Heating, ventilation and air-conditioning

323
RUSSIA
7 INVESTMENT INCENTIVES
Various tax incentives are provided under federal and regional programmes.
Special economic zones have been created in some regions of Russia for industrial manufacturing (Lipetsk
Region, Samara Region, Pskov Region, Republic of Tatarstan, Kaluga Region, Sverdlovsk Region, Tula
Region, Astrakhan Region, Moscow Region (2), Voronezh, Orel Region, Nizhniy Novgorod Region, Republic
of Bashkortostan, Vladimir Region), for research and development (Moscow, Tomsk, St-Petersburg,
Moscow Region (2), Kazan), for logistics (Ulyanovsk) and for tourism (The Republic of Buryatia, Tver Region,
North Caucasus, Altai Territory, Irkutsk Region). Furthermore, a special economic zone has been
established in Kaliningrad on the basis of a special federal law.
To attract domestic and international businesses, many regions make tax incentives available in specific
areas according to the so-called cluster principle. The incentives provided by the regional legislation are
similar to the tax regime in the special economic zones.
Although the tax regulations may differ in their details from region to region, the main attractions are a
reduced profit tax rate and a reduced or zero rate for tax on property and/or land. For example, car
manufacturers located in Moscow are entitled a lower rate of corporate profit tax (12.5% in tax periods
2018–2020), payable to the budget of Moscow, and to a zero rate of corporate property tax.
In addition, a favourable depreciation regime is available to residents of the special economic zones.
Federal law also provides for protection from changes in federal tax legislation.
Moreover, residents of special economic zones enjoy customs incentives. Specifically, in the territory of a
special economic zone a free customs zone procedure applies, ie foreign goods may be imported to the
special economic zone and used there without payment of customs duties and taxes, and without any non-
tariff limitations.
Furthermore, in October 2015 a new investment opportunity arose in Russia: the free port of Vladivostok.
This special cluster is situated in the Primorsky region and is largely aimed at boosting the local economy.
Residents of the free port are entitled to tax incentives such as a reduced profit tax rate and reduced social
security contributions rates. As in the special economic zones discussed above, a free customs zone
operates in the territory of the free port.
In 2014, several subsidies partially compensating the production costs (also known as ‘industrial
subsidies’) were introduced to support the eligible local carmakers in the challenging market
circumstances. From July 2019, the right to apply for ‘industrial subsidies’ was also granted to SpIC holders.

324
37
ACEA TAX GUIDE 2021
South Korea
Chapter prepared by
Minchul JI
[email protected]
KAMA
Korea Automobile Manufacturers’ Association
Banpodaero 25
Seocho-gu
KR — 06710 Seoul
T. +82 2 3660 1852
www.kama.or.kr
SOUTH KOREA
1.1 STRUCTURE OF AUTO TAXATION

Type of taxes Remarks
Purchase Individual consumption tax National tax
Education tax National tax
VAT National tax
Registration Acquisition tax Local tax
Public bond Local tax
Possession Annual vehicle tax Local tax
Education tax Local tax
Use Fuel excise tax National tax
Education tax National tax
Motor fuel tax Local tax
VAT on fuel National tax
1.2 TAX RATES

1.2.1 Individual consumption tax (only for passenger cars)
Vehicle category Tax rates Remarks

≤ 1,000cc Exempted Education tax: 30% of excise tax
> 1,000cc 5% of ex-factory price VAT: 10% of (ex-factory price + excise
tax + education tax)
Hybrids/Plug-in hybrid Temporary tax reduction: Education tax cut:
electric vehicles (PHEV) max KRW 1m per car max KRW 0.3m per hybrid car
(January 2013-December 2022) (January 2013-December 2022)
Electric vehicles 5% of ex-factory price. Education tax cut: max KRW 0.9m per car
Temporary tax reduction: (January 2012-December 2022)
max KRW 3m per car
(January 2012-December 2022)
Fuel-cell electric vehicles Temporary tax reduction: Education tax cut: max KRW 1.2m per car
(FCEV) max KRW 4m per car (January 2020-December 2022)
Reduction of the individual consumption by 30% for all passenger cars (January-June 2021).

326
SOUTH KOREA
1.2.2 Acquisition tax

Vehicle category Tax rates Remarks
≤ 1,000cc Temporary tax reduction (passenger cars): Retail price: ex-factory price + excise
max KRW 0.5m per car tax + education tax + VAT
Temporary tax exemption (bus, truck):
Passenger cars 7% of (retail price minus VAT) Temporary exemption for households
with 3 children or more:
o 7–10 seats: exemption
o < 7 seats, max KRW 1.4m tax
exemption
Commercial vehicles 5% of (retail price minus VAT) Temporary exemption for households
with 3 children or more.
o Bus: < 15 seats
o Truck: < 1t
Hybrids/Plug-in Temporary tax reduction:
hybrid electric 2019: max KRW 1.4m per car
vehicles (PHEV) 2020: max KRW 0.9m per car
2021: max KRW 0.4m per car
Electric and fuel cell Temporary tax reduction: max KRW 1.4m per
electric cars car (January 2020-December 2021)
Electric and fuel cell Tax Exemption (since 2020)
electric buses
1.2.3 Public bond (passenger cars)

Vehicle category Tax rates (%)
≤ 1,000cc Exempted
1,001–1,599cc 9 of retail price minus VAT
1,600–1,999cc 12 of retail price minus VAT
≥ 2,000cc 20 of retail price minus VAT
Multi-purpose vehicles (MPV) 5 of retail price minus VAT
Electric vehicles: Length Width Height 9 of retail price minus VAT

≤ 4.7m ≤ 1.7m ≤ 2.0m
Exceeding any of the sizes above 12 of retail price minus VAT
Exceeding all of the sizes above 20 of retail price minus VAT
1.2.4 Annual vehicle tax (passenger cars)

Vehicle category (cc) Tax rates (KRW) Remarks
≤ 1,000 80/cc Education tax: 30% of annual vehicle tax
1,001–1,600 140/cc Tax reduced by 5% per year (up to max 50%) starting from
the third year after the initial registration of a new car
> 1,600 200/cc

327
SOUTH KOREA
1.2.5 Fuel excise tax (Transportation-Energy-Environment Tax)

Fuel Tax rates (KRW) Remarks
Petrol 529/l Applicable rates are adjustable
Diesel 375/l ± 30% of legal rates:
Petrol: KRW 475/l
Liquefied Petroleum Gas 275/kg Diesel: KRW 340/l
(LPG) LPG: KRW 252/kg
Education tax: 15% of fuel excise

tax
VAT: 10% of ex-factory

price + excise tax + motor fuel
tax + education tax
Mini cars receive a refund of max

KRW 200,000 per annum
(valid until December 2021)
1.2.6 Motor fuel tax
Motor fuel tax was introduced in 2000 to make up for the loss of provincial government tax revenue
resulting from the reduction of annual vehicle tax.
Fuel Tax rate Remarks
Petrol, diesel 26% of fuel excise tax Legal rate: 36%

328
38
ACEA TAX GUIDE 2021
Turkey
Chapter prepared by
Irem Bacdar
[email protected]
OSD
Automotive Manufacturers’
Association of Turkey
Atilla Sokak 10 Altunizade
TR — 34676 Istanbul
T. +90 216 318 29 94
F. +90 216 321 94 97
www.osd.org.tr
TURKEY
1.1 VAT
1.2 CONSUMPTION TAX

The purchase of a motor vehicle is also subject to Special Consumption Tax (SCT), the rates of which
are now dependent on the engine capacity and pre-tax sales price. The total amount of tax for a
passenger car with an engine capacity of maximum 1,600cc and pre-tax price of maximum TRY 85,000
is calculated as follows:
Pre-tax price TRY 100

SCT (%) 45 (per car with an engine capacity of maximum 1,600cc, pre-tax price maximum TRY
85,000)
Price after SCT (100 × 1.45) = TRY 145
VAT (%) 18
Total price (145 × 1.18) = TRY 171.1
Total tax (%) 71.1
CN Type of vehicle SCT VAT Total tax (%)

code (%) (%)
87.02 Motor vehicles designed for the transport of passengers with more than 10 seats including driver
Minibus 9 18 28.62
Midibus 4 18 22.72
Bus 1 18 19.18
87.03 Passenger cars and other motor vehicles principally designed for the ─ 18 ─
transport of passengers (excluding those listed under CN code 87.02, but
including station wagons and racing cars):
• Only passenger cars, station wagons, racing cars, off-road vehicles, etc
(including armoured vehicles to carry money), motor caravans, motor
vehicles operated with electric power, gas, solar energy, etc.
• Excluding ambulances, vehicles designed to carry convicts, funeral cars,
motor vehicles designed for special purposes such as leading fire trucks,
vehicles driven by compression-ignited internal combustion engines
equipped with pistons and designed to travel particularly on snow (diesel
or semi-diesel) or motor vehicles driven by spark-ignited internal
combustion engines equipped with pistons, and others (golf carts and
other similar vehicles)
• Motor vehicles (excluding those having all their wheels driven or may be
driven by the engine, passenger cars, station wagons, racing cars and off-
road vehicles) used in hauling goods, and with a maximum weight of 3.5t
and a passenger carrying capacity 1 less than 50% of maximum load
capacity (total weight of load including the driver and passengers that a
vehicle can carry safely)
Maximum Piston displacement 15 18 35.7
loading < 2,000cm3
capacity
≤ 850kg
Maximum Piston displacement 15 18 35.7
loading < 2,800cm3
capacity
> 850kg
Powered by electric motor only 10 18 29.8
1
Passenger carrying capacity is calculated by multiplying the total number of passengers including the driver by 70kg. In this
calculation, even if there are no regular seats in the vehicle, any fixed facilities provided for mounting seats shall be considered
as seats.

330
TURKEY
With nine seats including driver

Piston displacement ≤ 3,200cm3 15 18 35.7
Powered by electric motor only 10 18 29.8
Others
Pre-tax price:
≤ TRY 85,000 45 71.1
≤ 1,600cm3 18
85,000 > TRY ≤ 130,000 50 77
> TRY 130,000 80 112.4
Pre-tax price:
≤ TRY 170,000 130 171.4
Others 150 195
Additional electric motor
> 50kW,
1,600 > cm3 ≤ 2,000 18
≤ 1,800cm3 and
pre-tax price:
Engine
≤ TRY 85,000 45 71.1
capacity
85,000 > TRY ≤ 135,000 50 77
Others 80 112.4
> 100kW,
2,000 < cm3 ≤ 2,500 and
pre-tax price:
> 2,000cm3 ≤ TRY 170,000 130 18 171.4
> 100kW
and > 2,500cm3 150 195
Others 220 277.6
Powered by electric motor only
≤ 85kW 10 29.8
Motor power 85 < kW ≤ 120 25 18 26.3
> 120kW 60 35.7
87.04 Motor vehicles designed for the transport of goods (only those subject to recording and registration)
Of those with a maximum loaded weight under 4,700kg and with seating other than the driver’s seat, or with side
windows other than those besides the driver’s seat (excluding those of vehicles without a covered body whose
piston displacement is > 3,200cm3)
≤ 3,000cm3 10 29.8
Engine capacity 3,000 < cm3 ≤ 4,000 52 18 47.5
> 4,000cm3 75 88.8
Powered by electric motor only
≤ 85kW 10 29.8
Motor power 85 < kW ≤ 120 52 18 79.4
> 120kW 75 106.5
With a covered body and with a maximum loading capacity under 620kg
Electric motor only 10 18 29.8
Others 10 18 29.8
Others
Electric motor only 4 18 22.7
Others 4 18 22.7

331
TURKEY

The motor vehicle tax for passenger cars is based on the vehicle’s engine capacity, pre-tax sales price
and its age. The motor vehicle tax for passenger cars which are powered by an electric motor only is
25% of the motor vehicle tax corresponding to the pre-tax price and age. The annual values for 2021 in
Turkish lira are as follows:
Passengers cars registered after 1 January 2018 (included)
Age of vehicle (years)
Engine capacity (cc)
Pre-tax price (TRY) 1─3 4─6 7─11 12─15 ≥ 16
Passenger cars TRY
≤ 1,300 ≤ 56,500 1,051 733 410 309 109
56,500 < TRY ≤ 99,000 1,155 806 450 341 120
> 99,000 1,261 879 492 372 130
1,301─1,600 ≤ 56,500 1,830 1,372 796 563 216
56,500 < TRY ≤ 99,000 2,014 1,510 876 617 236
> 99,000 2,197 1,647 954 674 258
1,601─1,800 ≤ 141,600 3,556 2,781 1,635 998 387
> 141,600 3,881 3,032 1,786 1,090 422
1,801─2,000 ≤ 141,600 5,603 4,315 2,536 1,510 594
> 141,600 6,113 4,709 2,767 1,647 648
2,001─2,500 ≤ 176,800 8,405 6,102 3,812 2,277 901
> 176,800 9,170 6,656 4,158 2,485 983
2,501─3,000 ≤ 353,900 11,719 10,196 6,369 3,426 1,256
> 353,900 12,786 11,122 6,949 3,738 1,371
3,001─3,500 ≤ 353,900 17,848 16,060 9,674 4,829 1,769
> 353,900 19,472 17,519 10,553 5,267 1,932
3,501─4,000 ≤ 566,400 28,063 24,233 14,271 6,369 2,536
> 566,400 30,616 26,435 15,571 6,949 2,767
> 4,000 ≤ 672,600 45,932 34,443 20,399 9,168 3,556
> 672,600 50,107 37,575 22,254 10,001 3,881
Note: the exchange rate is €1 = TRY 8.43 (as of 2 February 2021)

332
TURKEY
Engine capacity (kW) Pre-tax price (TRY) Pre-tax price (TRY)

Electric passenger cars
≤ 70 ≤ 56,500
56,500 < TRY ≤ 99,000
> 99,000
70 < kW ≤ 85 ≤ 56,500
56,500 < TRY ≤ 99,000
> 99,000
85 < kW ≤ 105 ≤ 141,600
> 141,600
105 < kW ≤ 120 ≤ 141,600
> 141,600 25% of the motor vehicle tax corresponding to
120 < kW ≤ 150 ≤ 176,800 the pre-tax price, age and kW
> 176,800
150 < kW≤ 180 ≤ 353,900
> 353,900
180 < kW≤ 210 ≤ 353,900
> 353,900
210 < kW≤ 240 ≤ 566,400
> 566,400
> 240 ≤ 672,600
> 672,600
Passengers cars registered until 31 December 2017 (included)

Engine capacity (cc) Age of vehicle (years)
1─3 4─6 7─11 12─15 ≥ 16
Passenger cars TRY
< 1,300 1,051 733 410 309 109
1,301─1,600 1,830 1,372 796 563 216
1,601─1,800 3,234 2,526 1,488 906 351
1,801─2,000 5,095 3,923 2,306 1,372 541
2,001─2,500 7,640 5,547 3,466 2,070 819
2,501─3,000 10,655 9,268 5,790 3,113 1,143
3,001─3,500 16,226 14,600 8,794 4,389 1,610
3,501─4,000 25,513 22,030 12,974 5,790 2,306
> 4,000 41,756 31,312 18,544 8,333 3,234
Electric motor power (kW) Yearly (TRY)

Passenger cars
≤ 70
70 < kW ≤ 85
85 < kW ≤ 105
105 < kW ≤ 120
120 < kW ≤ 150 25% of the motor vehicle tax corresponding to the age and kW
150 < kW ≤ 180
180 < kW ≤ 210
210 < kW ≤ 240
> 240

333
TURKEY
The motor vehicle tax for motorcycles is based on the vehicle’s engine capacity and its age. The annual
rates for 2021 in Turkish lira are as follows:
Engine capacity (cc) Age of vehicle (in years)

1─3 4─6 7─11 12─15 ≥ 16
Motorcycles TRY
100─250 196 147 108 67 26
251─650 405 307 196 108 67
651─1,200 1,045 621 307 196 108
> 1,200 2,535 1,675 1,045 830 405
Electric motor power (kW) Yearly (TRY)

Motorcycles
6 < kW ≤ 15
15 < kW ≤ 40
25% of the motor vehicle tax corresponding to the age and kW
40 < kW ≤ 60
> 60
The annual rates for minibuses, vans, motor caravans, buses, trucks, pick-ups and road tractors for
2021 in Turkish lira are as follows:
Age of vehicle (in years)

1─6 7─15 ≥ 16
Motor vehicle type TRY
Minibus 1,256 830 405
Van or motor caravan (cc)
≤ 1,900 1,675 1,045 621
> 1,900 2,535 1,675 1,045
Bus (seating capacity)
≤ 25 3,172 1,895 830
26─35 3,804 3,172 1,256
36─45 4,234 3,591 1,675
≥ 46 5,079 4,234 2,535
Pick-up, truck or road tractor (GVW)
≤ 1,500 1,127 748 367
1,501─3,500 2,281 1,311 748
3,501─5,000 3,427 2,852 1,127
5,001─10,000 3,804 3,231 1,515
10,001─20,000 4,572 3,804 2,281
> 20,000 5,719 4,572 2,657
Source: Official Journal

334
TURKEY
Motor vehicle type with an electric Yearly (TRY)

engine
Minibus 25% of the motor vehicle tax corresponding to the age
Van, Motorcaravan (kW)
≤ 115
25% of the motor vehicle tax corresponding to the age and kW
> 115
Bus (sitting capacity)
≤ 25
26─35 25% of the motor vehicle tax corresponding to the age and sitting
36─45 capacity
≥ 46
Pick-up, truck and road tractor (GVW)
< 1,500
1,501─3,500
3,501─5,000 25% of the motor vehicle tax corresponding to the age and Gross
5,001─10,000 Vehicle Weight
10,001─20,000
> 20,000
3 TAXES ON MOTORING
3.1 FUEL TAXES

Fuel price is determined by the free market, depending on global crude oil prices, and is subject to VAT
and SCT. As of 2018, SCT has a fixed value and the VAT rate is 18%.
SCT (TRY/l) VAT (%)

Diesel 1.6497
18
Petrol 2.5265
As of February 2021, on the basis of fuel prices, the total amount of tax as a percentage of pre-tax value
is approximately 40% for diesel and 45% for petrol. SCT amounts to refinery price depending on the
changes.

335
39
ACEA TAX GUIDE 2021
United Kingdom
Chapter prepared by
Matthew Croucher
[email protected]
Anand Dossa
[email protected]
SMMT
The Society of Motor Manufacturers
and Traders Ltd
Great Peter Street 71
UK — London SW1P 2BN
T. +44 207 235 70 00
F. +44 207 235 71 12
www.smmt.co.uk
UNITED KINGDOM
1.1 VAT
1.1.1 VAT on new vehicles
The rate of VAT, across the UK, has been 20% since 4 January 2011. Previously, VAT was set at 17.5%,
with a temporary reduction to 15% from 1 December 2008 until 31 December 2009.
Cars (up to 12 seats), commercial vehicles and motorised caravans are subject to VAT at the standard
rate, calculated on the invoice value.
1.1.2 VAT on second-hand vehicles
Cars and motorised caravans
VAT is paid on the difference between the vendor’s purchase price and sale price when the second-
hand car is acquired from a taxable person registered for VAT – the Margin Scheme. If VAT was
deducted on the purchase of the new car, it has to be applied on the full selling price of the second-
hand car. Private individual to private individual transactions are not taxed. See VAT Notice 700/64 for
more details.
Commercial vehicles
VAT is paid on the resale price of the vehicle.

1.2.1 Deduction of VAT
New vehicles
A taxable person (registered for VAT) who is operating in the rental car, driving school or taxi sector is
permitted to deduct the VAT on the purchase of a vehicle. Leasing companies providing cars for these
purposes are also allowed to deduct VAT. Regarding motorised caravans, a taxable person is able to
claim back the VAT. Finally, the VAT paid on the purchase of a commercial vehicle is deductible by VAT-
registered taxable companies. Leasing companies and companies buying cars wholly for a business
purpose can fully deduct VAT. Only 50% of the VAT applying to the car leasing charge is recoverable
where there is any use of the car for private motoring.
Second-hand vehicles
VAT is generally not deductible on cars although taxable companies registered for VAT may claim the
VAT on qualifying cars purchased wholly for a business purpose. Taxable companies registered for
VAT may claim the VAT paid on their purchases of commercial vehicles.
1.2.2 Depreciation
Business cars (see also further explanatory note at end of this section)
As of April 2002, certain very low CO2-emitting cars, including electric vehicles, qualify for 100% first-
year writing down allowances (FYAs). Since April 2009 the capital allowance treatment of all cars has
been designed to benefit those with low CO2 emissions. From 1 April 2013, expenditure on cars with
CO2 emissions above 130g/km attracts 8% writing-down allowance (WDA), while expenditure on cars
with CO2 emissions of 95-130g/km attracts an 18% WDA. Cars that emit less than 95g/km can claim
100% FYA. From 2015, the 100% rate will apply to cars emitting less than 75g/km. The government has
reviewed the main rate thresholds and, from April 2018 until March 2021, cars that emit less than
50g/km can claim 100% FYA. Also, the main threshold rate (for determining the 8% and 18% rates) is
reduced to 110g/km. These changes also amend the lease rental restriction in line with these values.

337
UNITED KINGDOM
From April 2021, government will extend first year allowances to ZEVs only and apply the main rate
writing down allowance (WDA) of 18% to cars with emissions up to 50g/km. The special rate WDA of
6% will apply to higher polluting cars with emissions above 50g/km. First year allowances for zero
emission goods vehicles and natural gas and hydrogen refuelling equipment will also be extended.
In March 2021, the government has introduced ‘super deductions’ on a temporary basis for expenditure
on plant and machinery. Business cars do not qualify as they have rates set to 2025 already (see
https://www.gov.uk/government/publications/capital-allowance-carbon-dioxide-emissions-
thresholds-for-business-cars-goods-vehicles-and-equipment-for-gas-refuelling-stations-from-april-
2021/capital-allowances-co2-emission-thresholds-for-business-cars-and-first-year-allowances-for-
business-cars-zero-emission-goods-vehicles-and-equipment) , but other vehicles can qualify – see
here from 1 April 2021 to 31 March 2023: https://www.gov.uk/government/publications/new-
temporary-tax-reliefs-on-qualifying-capital-asset-investments-from-1-april-2021. The super deductions
are 130% WDA on capital allowances instead of the usual 18% (or 50% on the 6% rate).
Commercial vehicles
Firms apply the reducing-balance method of depreciation at the annual rate of 18% in the general asset
pool for plant and machinery (plant and machinery capital allowances).

The first registration fee is £55 for all vehicles. The flat rate fee was introduced in 1998 at £25. It rose
to £38 on 1 January 2004, to £50 on 1 May 2007 and to its current rate on 1 April 2008. As of February
2017, the rate remains at £55. More info on registration charges is available here:
https://www.gov.uk/vehicle-registration/new-registrations
1.4 PLUG-IN GRANT FOR THE ACQUISITION OF LOW-EMISSION VEHICLES
Buyers can get a discount on the price of brand new low-emission vehicles through a grant the
government gives to vehicle dealerships and manufacturers.
As of March 2021, grants are a maximum of £2,500 for cars - must be under 50g/km and do 112km/70
miles with zero emission and have a list price of under £35,000 (previously was £3,000 for cars up to
£50,000). There are also grants for qualifying vans, trucks, taxis and motorbike/mopeds. See
https://www.gov.uk/plug-in-car-van-grants for more details.

Private cars Up to 1999 Flat rate
Up to March 2001 Graduated system (all cars based on engine size)
From March 2001 Existing cars based on engine size and new cars based on
CO2 emission ratings
Buses and coaches Number of seats and environmental characteristics
Commercial vehicles Structure based on dead weight and environmental characteristics
Vehicle excise duty rates Rates currently reviewed on a budget by budget basis (typically in March 2021)
2.2 RATES
2.2.1 Private cars and vans (of dead weight less than 3,500kg)
In March 2001, a graduated system for new cars, based on CO2 emissions ratings and fuel type
(petrol/diesel), was introduced. However, note that these rates apply only to cars that have been type-
approved within category M1 of Annex II to Council Directive 70/156/EEC and which have been
registered on the basis of a type-approval certificate that shows the CO2 emissions level in terms of

338
UNITED KINGDOM
grams per kilometre driven. Cars without a CO2 value or registered before March 2001 have a rate
determined by engine size, over or under 1,549cc. Cars registered before 1 January 1974 are exempt
from the tax.
2.2.2 Coaches and buses
A road tax is imposed on buses and coaches according to their number of seats. Vehicles with Reduced
Pollution Certificates are charged at the lowest rate.
2.2.3 Lorries
Lorries used to be rated for road tax according to their laden weight, vehicle type and axle configuration.
The various rates are listed hereafter. Discounted rates were and continue to be applied for vehicles
with Reduced Pollution Certificates.
A new structure was introduced from 1 December 2001. There are seven bands or rates of vehicle
excise duty (VED). These are applied to rigid and articulated vehicles according to their gross vehicle
weight and axle configurations (two, three, four or more).
From 1 April 2014, rates for heavy goods vehicles (HGVs) were revised within the HGV Road User Levy
Scheme. This scheme charges foreign and UK hauliers’ vehicles for road use; UK hauliers pay the levy
alongside VED payments, which were cut at the onset of the scheme.
Trailer duty
If the pulling vehicle is a rigid truck that is over 12,000kg and draws laden trailers over 4,000kg,
additional duty is payable. There are two rates for a laden trailer: 4,000-12,000kg and over 12,000kg.
The rates vary according to the weight and axle type of the vehicle, the type of trailer, truck levy rates,
reduced pollution certificate (RPC) grant and road-friendly suspension. Other rates apply for more
specialised trucks.
2.2.4 Overview of vehicle excise duty rates
The current vehicle excise duty rates for all vehicle types are typically published in the notice rates of
vehicle tax – V149. Rates effective as of 1 April 2021 are available at:
https://www.gov.uk/government/publications/rates-of-vehicle-tax-v149.
The tables below give the rates of VED that have been in effect for licences since 1 April 2017 following
a major reform of the VED system for cars. There are further differences in values for direct debit and
non-direct debit payments. First registration remains aligned with CO2 emissions values, but
subsequent relicensing is set at a flat-rate value linked to fuel type and a supplement aligned with the
list price of the car at first registration (up to £40,000 and over £40,000). From 1 April 2021 this premium
is £335 per annum in years 2 to 6.
From April 2020 zero emission-vehicles were exempted from the VED premium on cars over £40,000.
Private/light goods vehicles (goods vehicles not over 3,500kg ‘revenue weight’, ie confirmed
maximum gross weight or designed weight)
Vehicles registered before 1 March 2001
Tax Class 11 (cc) 12 months (£) 6 months (£)
≤ 1,549 165.00 90.75
> 1,549 270.00 148.50
Vehicles registered on or after 1 March 2001

12 months (£) 6 months (£)
Tax Class 39 265.00 145.75

339
UNITED KINGDOM
Cars (registered on or after 1 March 2001)

VED has been based on CO2 emissions since 2001, for cars registered after 1 March 2001. Since
1 May 2009, the system has had 13 bands, as shown in the table below. The rates for petrol and diesel
cars were equalised on 22 March 2007; alternatively fuelled cars receive a (£10) discount. In 2001, the
VED bands were originally based on four bands, A to B, then bands AA and AAA were introduced, which
were then reclassified from 1 April 2005 as bands A and B in an A to F system. A new G band for cars
over 225g/km was then introduced from 23 March 2006, applying to cars only from that date onwards.
From 1 April 2010 a new first-year/first-registration rate of VED was introduced. Cars emitting up to
130g/km CO2 attract a zero rate of VED, while cars with CO2 emissions between 131 and 165g/km are
charged at the standard rate and cars with CO2 emissions over 166g/km attract a considerably higher
rate (for cars in the highest band, band M – over 255g/km – the rate is more than twice the standard
rate). In 2013, rates for cars with CO2 emissions under 130g/km remained at zero, with rates above
rising. Additional bands have been created below the 100g/km as well as consolidation of other bands
groupings as shown in the table below.
Tax is only available for 12 months at these rates and bands. The UK Finance Bill from Autumn 2018
characterises between higher rate diesel vehicles, which will be subject to an increased rate based on
CO2 emissions. Diesels which do not meet RDE2 are subject to the one band rise in VED.
A vehicle imported into the UK that was previously registered abroad may also be eligible for the first-
year rate. If it is over six months old, the standard rate will apply. If the mileage is more than 6,000km
(3,728 miles), it will also be eligible for the standard rate of VED.
UK government was reviewing whether to amend VED and company car tax to reflect the new WLTP
test procedure. Since 1 April 2020, the WLTP figure is used as the basis for VED.
The UK government has previously consulted on introducing a graduated VED system for vans based
on CO2 data, but has yet to announce when a scheme may be introduced or details (bands and rates).
Heavy commercial vehicles and buses meeting Euro 5 emissions standards and registered before 30
September 2009 can benefit from a Reduced Pollution Certificate. RPCs were abolished on 31
December 2016. An HGV Road User Levy Scheme was introduced from 1 April 2014. See
www.gov.uk/government/collections/hgv-road-user-levy for more details.
As noted above, levy values were introduced for trucks of 12t GVW and more, and are set alongside the
main VED rates and so vary by vehicle weight, axle configuration and duration of (levy paid for) road
use. For UK-registered vehicles, the levy is paid at the same time and in the same transaction as VED.
For UK-based operators VED payments were reduced when the levy was set over 90% pay no more as
a result of the introduction of the levy. For more details on the many rates now payable, see the V149
notice, as above.
For the specific VED rates for heavy commercial vehicles, see:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file
/770275/v149x1-rates-of-vehicle-tax.pdf
Rates of VED for trucks have been unchanged for many years and at the last regime change – to
incorporate a levy on road use for foreign-based hauliers – the VED rates for UK-based hauliers were
reduced so that they would be no worse off as a result of the change in the regime.
More details on the history of and recent trends in UK VED are conveniently summarised in a recent
Research Paper from the (UK) House of Commons Library, at:
researchbriefings.files.parliament.uk/documents/SN01482/SN01482.pdf

340
UNITED KINGDOM
3 TAXES ON MOTORING
3.1 FUEL TAXES

January 2021 fuel prices
Unleaded 95 Octane Diesel Super Unleaded LPG
UK Average Litres Gallons Litres Gallons Litres Gallons Litres
(pence) (pence) (pence) (pence) (pence) (pence) (pence)
January 2020 128.0 581.9 132.7 606.3 141.1 641.5 68.5
January 2021 118.5 538.7 121.8 553.7 132.0 600.1 64.2
% taken as tax 2021 65.6 64.2 60.6 n/a
LPG, liquefied petroleum gas
Source: The AA UK and overseas petrol and diesel prices (https://www.theaa.com/driving-advice/driving-costs/fuel-prices)
The duty rates for petrol and diesel are the same in the UK. The rate is 57.95p/l. The last increase to
this level was in March 2011. Since 2011 proposed changes have been consistently postponed or
scrapped. Rates are set on a budget-by-budget basis. Prices at the pump in the table above are sourced
from the Automobile Association (AA). VAT is payable on the duty and the underlying price of fuel.
The March 2021 Budget confirmed that fuel duty will remain frozen for another year (at 57.95p/litre).

The private use of a company car (and van) by employers and directors of companies is taxed in the
United Kingdom as a benefit in kind. There is a further tax charge if free or subsidised fuel is provided
for private use in a company car. Since April 2002, company car taxation has been based on discounts
from the then standard 35% rate of the list price of a car (including any extras, accessories or options).
The charge is set according to the CO2 emissions ratings (g/km) of the car and its fuel type
(petrol/diesel/alternative fuels). This standard rate has now increased to 37%.
From 1 April 2010, pure electric cars (BEVs) were exempted (ie attracted a 0% rate). This was increased
to 5% for all cars with CO2 emissions ≤ 50g/km for the tax year 2015/16; further planned increases are
due over the years ahead. However, a review of the appropriate regime for discounts or incentives for
ultra-low emissions and electric vehicles has set some further changes for the period from 2020/21.
CO2 is still a key reference parameter, but zero-emissions capability and miles specified as possible in
zero-emissions mode are new reference items. For more details on these changes see:
www.gov.uk/government/publications/finance-bill-2017-draft-legislation-overview-
documents/overview-of-legislation-in-draft (section 1.15 Company Car Tax – bands and rates for tax
year 2020 to 2021).
Employers also pay National Insurance (NI) contributions, currently at the rate of 13.8%, on the benefit
of the cars and fuel that they offer to their employees for their private use.
As set out in July 2019, the UK government will reduce most CCT (company car tax) rates by 2% in
2020-21 for cars first registered from 6 April 2020 to reflect the introduction of WLTP. Rates will return
to planned levels over the following two years, increasing by 1% in 2021-22 and 1% in 2022-23. Rates
will then be frozen until 2024-25.
Van benefit was £3,000 per year in the 2011/12 tax year; for 2017/18 the level is £3,230, for 2018/2019
£3,350 and for 2019/2020 £3,430. The corresponding van fuel benefits are £500, £610, £633 and £655
– making combined benefits of £3,800 in 2011/12, £3,840 in 2017/18, £3,993 in 2018/19 and £4,985
in 2019/20. For 2020/21, van benefit is £3,490 with a corresponding flat fuel benefit of £666, which
brings the total of combined benefits to £4,156. Starting 6 April 2021, the van benefit rises to £3,500
and the corresponding flat fuel benefit to £669. The combined benefits will amount to £4,169.
As with company car tax, NI contributions are also due, and this amount is added to an individual’s
taxable income and is subject to tax at the individual’s marginal tax rate. From April 2010 to March
2015, electric vans and all zero-emissions vans were exempt from the van benefit charge. In 2016/17

341
UNITED KINGDOM
and 2017/18 this is set at 20% of the main charge for van benefit in kind and is planned to taper to
parity with the standard rate in April 2022.
Van benefit charge nil-rating for zero emission vans
From April 2021, the government will apply a nil rate of tax to zero-emission vans within van benefit
charge.
4.1 COMPANY CAR AND VAN BENEFIT IN KIND TAXATION

For more details on company car and van benefit-in-kind taxation, see:
• www.gov.uk/tax-company-benefits/tax-on-company-cars
• www.gov.uk/calculate-tax-on-company-cars
Since 1 April 2002 an individual’s company car tax (CCT) liability has been based on the vehicle’s CO2
emissions. An employee or director who receives this benefit is taxed (at his or her marginal tax rate)
on the value of the benefit added to their income. This value is a percentage (currently 0-37%) of the
vehicle’s list price, including VAT and delivery charges. Until 6 April 2010 there was a limit of £80,000,
but now there is no upper limit to the price of the car. The price is adjusted by a percentage factor based
on the CO2 emissions band in which the vehicle falls.
As set out in July 2019, the government will reduce most CCT rates by 2% in 2020-21 for cars first
registered from 6 April 2020. Rates will return to planned levels over the following two years, increasing
by 1% in 2021-22 and 1% in 2022-23. Rates will then be frozen until 2024-25.
Selected rates are detailed in the table below. For full details see:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file
/872424/Annex_A_-_rates_and_allowances.pdf
Diesel cars attract a 3% surcharge, up to a previous maximum of 35% (now 37%). This surcharge was
planned to be removed from April 2016; however, in the government’s autumn statement in November
2015, it was stated that for 2018-19 the 3% surcharged is 4%, unless the diesel is certified to RDE2
standard, in which case it is 0%.
Cars without an approved CO2 emissions rating are taxed on their engine size (cc). There are no special
rules for second company cars; they are taxed on the same basis as first cars – based on
recommended/published list prices and CO2 ratings.
Company car tax appropriate percentage rates for cars registered from 6 April 2020
CO2 emissions (g/km) Electric range (miles) 2019– 2020– 2021– 2022–
2020 2021 2022 2025
0 n/a 16 0 1 2
1–50 ≥ 130 16 0 1 2
70–129 16 3 4 5
40–69 16 6 7 8
30–39 16 10 11 12
< 30 16 12 13 14
51–54 19 13 14 15
Then 1% increase for each 5g/km band up to the below1
160–164 36 35 36 37
165–169 37 36 37 37
> 170 37 37 37 37
1 2019-2020 rates are 19% for 51-75g/km, 23% for 95-99g/km and then 1% increase for each 5g/km band

342
UNITED KINGDOM
4.2 FUEL BENEFIT IN KIND INCOME TAX CHARGES

The benefit of fuel for private use in a car is taxable according to a scale charge. In April 2003, a new
system linked a car’s CO2 percentage rating for car benefit tax to a set cash monetary value. In 2016/17
the monetary value is £22,200, £22,600 for 2017/18, £23,400 for 2018/19 and £24,100 for 2019/20. For
2020/21 the monetary value is £24,500. From 6 April 2021 the car fuel benefit charge multiplier rises
to £24,600. For example, if a car’s CO2 rating is 240g/km (petrol or diesel), this equates to a 37% rate
for car benefit and, when applied to 2021/22’s £24,600 would give a benefit value of £9,102 for a private
fuel to be charged to personal taxable income.
There is no tax liability if the employee provides his or her own fuel for private motoring. The journey
between the employee’s home and workplace is treated as private travel. From 6 April 2018 no benefit
in kind is offered on fuel provided for an electric vehicle.
The van fuel benefit is a flat rate of £610 for 2017/18, £633 for 2018/2019, £655 for 2019/20 and £666
in 2020/21. From 6 April 2021, the van fuel benefit will pass to £669.
4.2.1 Allowable deductions and capital allowances – a further note
Deductions for new and second-hand vehicles

These reliefs apply to businesses incurring expenditure from April 2018 on the acquisition or leasing of
cars for use in their business. Business expenditure on plant and machinery normally qualifies for tax
relief as capital allowances, which are normally given at the rate of 18% a year on a reducing balance
basis.
Under current UK law, new car section 45D Capital Allowances Act 2001, 100% first year allowances
(FYAs) are available to businesses that purchase cars with low CO2 emissions or electrically propelled
cars. The capital allowances rules for cars are based on their CO2 emissions per kilometre driven. The
current enhanced capital allowance scheme (ECA) is on-going.
CO2 emissions (g/km) April 2018-April 2021 (%) CO2 emissions (g/km) April 2021-April 2015 (%)
≤ 50 100 FYA Zero emissions 100
51–110 18 WDA ≤ 50 18
> 110 6 WDA > 50 6
FYA: first year allowance
WDA: writing-down allowance (annual)
Refuelling equipment and natural gas, biogas and hydrogen vehicles are also eligible under the
enhanced capital allowance (ECA) scheme. These benefits no longer apply to rental or hire companies
which make vehicles available for short term hire.

343
40
ACEA TAX GUIDE 2021
United States
Chapter prepared by
Tricia Cauley
[email protected]
Alliance of Automobile Manufacturers

1050 K Street, NW
Suite 650
US — Washington, DC 20001
T. +1 202 326 5500
www.autoalliance.org
U N I T E D S TAT E S
1 OVERVIEW OF VEHICLE TAX PROVISIONS IN THE UNITED STATES

In the United States, most vehicle taxes and fees are imposed at the state rather than at the federal level.
However, a notable exception is a measure in the federal tax code called the ‘gas guzzler tax’. More recently,
the tax code has been utilised to promote the purchase of electric vehicles (EVs) and plug-in hybrid electric
vehicles (PHEVs) by providing tax credits to the purchaser.
Most US states impose state sales taxes on most purchases, including vehicles. Sales taxes are added to
the price of goods or services that are purchased in the United States. A sales tax is a tax on consumption,
which is displayed as a percentage of the sale price. Sales taxes are assessed by every state except Alaska,
Delaware, Montana, New Hampshire and Oregon. Hawaii has a similar tax, although it is charged to
businesses instead of consumers. In some cases, for example New York State and California, sales taxes
are also assessed at the county or municipal level. California has the highest state sales tax, at 7.5%, which
can result in a total tax of up to 10% once local sales tax is included.
All US states impose vehicle registration fees. These vehicle registration fees are imposed on all vehicles
regardless of vehicle age and are generally collected annually. This chapter briefly describes the federal
gas guzzler tax and electric vehicle tax credits, and then for illustrative purposes describes taxes and fees
imposed by three states: California, North Carolina, and New York.
FEDERAL TAXES
Gas guzzler tax
The Energy Tax Act of 1978 established a gas guzzler tax on the sale of new vehicles whose fuel economy
fails to meet certain statutory levels. The gas guzzler tax applies only to cars (not lorries) and is collected
by the federal Internal Revenue Service (IRS). The purpose of the gas guzzler tax is to discourage the
production and purchase of fuel-inefficient vehicles. The fuel economy figures used to determine the gas
guzzler tax depend on values published by the Environmental Protection Agency, which estimates vehicle
fuel economy in miles per gallon based on a combined estimate of highway and city driving. The amount
of any applicable gas guzzler tax paid by the manufacturer will be disclosed on the automobile’s fuel
economy label, shown as a window sticker on new cars.
Fuel economy rating (miles per gallon) Tax ($)

≥ 22.5 Exempt
≥ 21.5–22.5 1,000
≥ 20.5–21.5 1,300
≥ 19.5–20.5 1,700
≥ 18.5–19.5 2,100
≥ 17.5–18.5 2,600
≥ 16.5–17.5 3,000
≥ 15.5–16.5 3,700
≥ 14.5–15.5 4,500
≥ 13.5–14.5 5,400
≥ 12.5–13.5 6,400
< 12.5 7,700

345
FEDERAL TAX CREDITS

Electric vehicle and plug-in hybrid electric vehicle tax credits
Electric vehicles (EVs) and plug-in electric vehicles (PHEVs) purchased in or after 2010 may be eligible for
a federal income tax credit. The minimum credit amount is $2,500, and the credit may be up to $7,500,
based on each vehicle’s traction battery capacity and the gross vehicle weight (GVW) rating. The credit
begins to phase out for vehicles at the beginning of the second calendar quarter after the manufacturer
produces 200,000 eligible vehicles (ie EVs and PHEVs) as counted from 1 January 2010. The IRS will
announce when a manufacturer exceeds this production figure and will announce the subsequent phase
out schedule. The phase out of tax credits for Tesla and General Motors began in 2019. As of February
2021, Tesla and General Motors tax credits have ended.
EXAMPLES OF VEHICLE TAX POLICIES IN US STATES

1.3.1 California
Vehicle licence fees
The vehicle licence fee (VLF) was established by the legislature in 1935 in lieu of a property tax on vehicles.
The formula for VLF assessment established by the legislature is based upon the purchase price of the
vehicle or the value of the vehicle when acquired. The VLF decreases with each renewal for the first 11
years. The VLF is equal to 1.15% of the market value of the vehicle.
Vehicle registration, sales and use taxes
New car purchases are subject to the same state sales taxes widely applicable to most consumer
merchandise, at a base rate of 7.5%, and can add up to 10% once local taxes are included. Tax and fees
vary by county and city within California. These taxes apply to new as well as used vehicles. As an example,
consider a new car being purchased by a resident of Los Angeles from a dealer at a total purchase price of
$20,000. The total tax and ‘tag’ (registration) fees would be as follows:
Title and register Fee ($)

Current registration 61.00
Current California Highway Patrol 28.00
Current VLF 131.00
Current county service authority for freeway emergencies fee 1.00
Current fingerprint ID fee 1.00
Current smog high polluter repair fee 6.00
Original smog abatement 6.00
Alternative fuel/tech smog fee 8.00
Current air quality management district 6.00
Current South Coast Air Basin 1.00
Alternative fuel/tech registration fee 3.00
Current vehicle theft/DUI (driving under the influence) 2.00
Current transportation improvement fee 55.00
Reflectorised licence plate fee 1.00
Total registration fees 310.00
Use/sales tax 1,900.00
Total use/sales tax 1,900.00
Grand total registration fees 2,210.00

346
Vehicle purchases are taxed based on the city and county in which the purchaser registers the vehicle, and
not on the county in which the vehicle is purchased. There is therefore no advantage in purchasing a car in
a cheaper county to save on sales tax.
1.3.2 North Carolina
Motor vehicle property tax

The North Carolina General Assembly recently passed legislation to implement the Tag and Tax Together
programme – a more streamlined method for vehicle owners to pay their registration and vehicle taxes.
Beginning in 2013, annual registration fees and vehicle property taxes will be paid to the Division of Motor
Vehicles (DMV). In turn, the DMV will distribute the taxes to the appropriate counties. Prior to this change,
motor vehicle taxes were collected by the county. Counties still set the tax rates, which vary from $0.27 to
$1.03 (per $100 valuation).
Sales tax/highway use tax

North Carolina collects a highway use tax (HUT) on vehicles rather than a state sales tax. The tax is
assessed each time a title is transferred. The tax assessment is 3% on passenger vehicles. The maximum
tax for commercial vehicles (vehicles with a weight greater than 26,000lbs) is $2,000. All other vehicles are
charged 3% with no ceiling.
Money that is collected for the highway use tax goes towards the North Carolina Highway Trust Fund. That
money is then used to improve the roads of North Carolina. Additionally, another portion of the money
collected for the highway use tax goes towards the State’s General Fund.
Vehicle registration fees

The fees charged to title and register a vehicle in North Carolina are provided in the following table:
Title and register Fee ($)

Certificate of title 56.00
Instant title 105.75
Licence plate registration fee for private passenger vehicles 38.75
Licence plate registration fee for private truck under 4,000lbs 38.75
All electric vehicles are subject to a $130 fee in addition to their registration fees 140.25
Regional transportation authority registration tax for vehicles registered in Wake, Durham and Orange 8.00
counties
Piedmont authority for regional transportation tax for vehicles registered in Randolph county 1.00
Transfer of plate 20.00
Highway use tax: based on vehicle’s purchase price or value 3%
1.3.3 New York
State and locality sales tax

New York State has a base sales tax rate on tangible personal property (including new and used vehicles)
of 4%, with an additional tax rate based on locality (city or county). The locality tax rate in New York varies
from an additional 3% to an additional 4.87%.
Vehicle registration fees

Vehicle registration fees are determined based on vehicle weight, according to the following table. The
dollar amount listed to the right of the vehicle weight is the registration fee for two years.

347
Weight (lbs) Fee ($) 4,251–4,350 76.00

0–1,650 26.00 4,351–4,450 78.50
1,651–1,750 27.50 4,451–4,550 81.00
1,751–1,850 29.00 4,551–4,650 83.50
1,851–1,950 31.00 4,651–4,750 85.50
1,951–2,050 32.50 4,751–4,850 88.00
2,051–2,150 34.00 4,851–4,950 90.50
2,151–2,250 35.50 4,951–5,050 93.00
2,251–2,350 37.50 5,051–5,150 95.50
2,351–2,450 39.00 5,151–5,250 98.00
2,451–2,550 40.50 5,251–5,350 100.50
2,551–2,650 42.00 5,351–5,450 102.50
2,651–2,750 43.50 5,451–5,550 105.00
2,751–2,850 45.50 5,551–5,650 107.50
2,851–2,950 47.00 5,651–5,750 110.00
2,951–3,050 48.50 5,751–5,850 112.50
3,051–3,150 50.00 5,851–5,950 115.00
3,151–3,250 52.00 5,951–6,050 117.00
3,251–3,350 53.50 6,051–6,150 119.50
3,351–3,450 55.00 6,151–6,250 122.00
3,451–3,550 56.50 6,251–6,350 124.50
3,551–3,650 59.00 6,351–6,450 127.00
3,651–3,750 61.50 6,451–6,550 129.50
3,751–3,850 64.00 6,551–6,650 131.50
3,851–3,950 66.50 6,651–6,750 134.00
3,951–4,050 69.00 6,751–6,850 136.50
4,051–4,150 71.00 6,851–6,950 139.00
4,151–4,250 73.50 ≥ 6,951 140.00
The first time a vehicle is registered, additional original registration fees apply, amounting to $25.00 for
vehicle plates, $50.00 for a title certificate, and the sales tax. The amount of the sales tax depends on the
purchase price and locality. There is also a minimum two-year fee of $32.50 for a vehicle that has six or
more cylinders, or for an electric vehicle.
New York City tax rates

In the case of tangible personal property, including motor vehicles, the New York City sales tax rate is 4.5%
(in addition to the New York State sales and use tax of 4% and the Metropolitan Commuter Transportation
District surcharge of 0.37%), giving a total sales and use tax rate of 8.9%.
The city charges a 10.3% tax and an additional 8% surtax on parking, garaging or storing motor vehicles in
Manhattan. If you are a resident of Manhattan and own a motor vehicle registered in Manhattan, you may
be eligible for a Manhattan resident parking tax exemption from the 8% surtax. For those who qualify, the
tax rate is 10.3% instead of 18.3%.

348
Vehicle use taxes and supplemental fees for passenger vehicles

Residents of New York City and several counties in New York State must pay a vehicle use tax when they
register a passenger vehicle or renew a passenger vehicle registration. The New York State Department of
Motor Vehicles collects the taxes for the city and the counties.
The table below indicates which counties are affected by a vehicle use tax. As noted in the table, residents
of the 12 counties in the Metropolitan Commuter Transportation District (MCTD) also pay a supplemental
fee for each year the registration is in effect.
New York City — all counties

Counties Amount of vehicle use tax/supplemental fee
Bronx, Kings (Brooklyn), New York (Manhattan), All passenger vehicles: $30 for two years ($15 per year)
Queens, Richmond (Staten Island) Supplemental MCTD fee: $50 for two years ($25 per year)
County Weight (lbs) Use tax

Albany ≤ 3,500 $10 for two years ($5/year)
≥ 3,501 $20 for two years ($10/year)
Allegany ≤ 3,500 $10 for two years ($5/year)
Broome ≤ 3,500 $10 for two years ($5/year)
Cattaraugus ≤ 3,500 $10 for two years ($5/year)
Chautauqua ≤ 3,500 $10 for two years ($5/year)
Chemung ≤ 3,500 $10 for two years ($5/year)
Clinton ≤ 3,500 $10 for two years ($5/year)
Cortland ≤ 3,500 $10 for two years ($5/year)
Dutchess ≤ 3,500 $10 for two years ($5/year)
Supplemental MCTD fee $50 for two years ($25/year)
Erie ≤ 3,500 $10 for two years ($5/year)
Franklin ≤ 3,500 $10 for two years ($5/year)
Genesee ≤ 3,500 $10 for two years ($5/year)
Livingston ≤ 3,500 $10 for two years ($5/year)
Madison ≤ 3,500 $10 for two years ($5/year)
Monroe ≤ 3,500 $10 for two years ($5/year)

349

Montgomery ≤ 3,500 $10 for two years ($5/year)
Nassau All weights $30 for two years ($15/year)
Niagara ≤ 3,500 $10 for two years ($5/year)
Oneida ≤ 3,500 $10 for two years ($5/year)
Onondaga ≤ 3,500 $10 for two years ($5/year)
Orange Supplemental MCTD fee $50 for two years ($25/year)
Orleans ≤ 3,500 $10 for two years ($5/year)
Oswego ≤ 3,500 $10 for two years ($5/year)
Putnam ≤ 3,500 $10 for two years ($5/year)
Rensselaer ≤ 3,500 $10 for two years ($5/year)
Rockland ≤ 3,500 $10 for two years ($5/year)
Schenectady ≤ 3,500 $10 for two years ($5/year)
Schuyler ≤ 3,500 $10 for two years ($5/year)
Steuben ≤ 3,500 $10 for two years ($5/year)
Suffolk ≤ 3,500 $30 for two years ($15/year)
Sullivan ≤ 3,500 $10 for two years ($5/year)
Tioga ≤ 3,500 $10 for two years ($5/year)
Tompkins ≤ 3,500 $10 for two years ($5/year)
Ulster ≤ 3,500 $10 for two years ($5/year)
Warren ≤ 3,500 $10 for two years ($5/year)

350

Washington ≤ 3,500 $10 for two years ($5/year)
Westchester ≤ 3,500 $30 for two years ($15/year)
Wyoming ≤ 3,500 $10 for two years ($5/year)
Yates ≤ 3,500 $10 for two years ($5/year)

351
ACEA represents the 15 members major Europe-based
car, van, truck and bus manufacturers
www.acea.be
+32 2 732 55 50
[email protected]
twitter.com/ACEA_eu linkedin.com/company/ACEA youtube.com/ACEAeu

ACEA Tax Guide 2021

Uploaded by

Copyright:

Available Formats

ACEA Tax Guide 2021

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ACEA Tax Guide 2021

Uploaded by

Copyright:

Available Formats

2021

ACEA TAX GUIDE 2021

1 MOTOR VEHICLE TAXATION: EU SUMMARY

1.1 TAXES ON ACQUISITION

Country VAT Registration Tax

1.2 TAXES ON OWNERSHIP

Country Passenger cars Commercial vehicles

1 Only for business purpose vehicles

1.3 TAXES ON MOTORING2

Excise duties on fuels in €/1,000 litres

2 Situation on 1 January 2021

Driving license fees − 0.0 0.2 − 0.1 − − − 0.0 − 0.3 − −

GRAND TOTAL = €398.4 billion

ACEA TAX GUIDE 2021

1.2 FUEL CONSUMPTION/POLLUTION TAX

[(CO2 emissions in g/km - 55) ÷ 4] + NoVA malus fee (if applicable)

0.02 × (cylinder capacity in cm3 - 100)

Passenger cars (including minibuses and caravans) and combination cars

1.3 TAX ALLOWANCES

1.4 REGISTRATION CHARGES

2.1 VEHICLE TAX

2.1.1 Calculation of Vehicle Tax

Vehicle tax for all vehicles registered before 1 October 2020

they do not meet certain emission standards.

Type of vehicle Monthly rate (€) Notes Minimum Maximum rate

Min (CO2 emissions - 52) = 10g

Type of vehicle Monthly rate (€) Notes Minimum Maximum rate

2.1.2 Tax exemptions

3.2 INSURANCE TAXES

Tolls on other specified roads can be levied in addition.

Exceptions to the compulsory Vignette usage

Heavy commercial vehicles

4 PRIVATE USE OF A COMPANY CAR

5 PERIODIC INSPECTION OF VEHICLES

There is an additional administration fee of €1.90 for the inspection sticker.

6 FEDERAL PURCHASE INCENTIVES AND PROMOTION PROGRAMME FOR THE PURCHASE

E-cargo bikes 150 850

E-bikes (min. 5 units) 150 250

E-trucks (E-heavy BEV, FCEV N2 2,000 22,000

E-buses M3 (≤ 39 persons – 52,000

M3 (40–120 persons – 78,000

M3 (> 121 persons – 130,000

E-special purpose – on request

ACEA TAX GUIDE 2021

Resulting table (fiscal hp):

VANS, TRUCKS, ARTICULATED GOODS VEHICLES, TRAILERS

2.1.1.1 Purchase of a vehicle in Belgium by a person living in Belgium

Trailers, semi-trailers, camping trailers

2.1.1.2 Purchase of a vehicle in Belgium by a person living in another EU member state

Trailers, semi-trailers, camping trailers

2.1.1.3 Purchase of a vehicle in Belgium by a person living outside the EU

2.1.1.4 Purchase of a vehicle in another EU member state by a person living in Belgium

State of vehicle Seller Purchaser VAT TES

Light and heavy commercial vehicles, articulated vehicles

Trailers, semi-trailers, camping trailers

2.1.1.5 Purchase of a vehicle outside the EU by a person living in Belgium

2.1.2 Registration plate

TAXES, CHARGES AND INCENTIVES ON ACQUISITION AT REGIONAL LEVEL

2.2.1 Brussels-Capital Region

For more details, see: https://www.provelo.org/fr/page/bruxelles-prime-bruxell_air