What is NoVA (Normverbrauchsabgabe)?The Normverbrauchsabgabe (NoVA), or Standard Consumption Tax, is an environmental excise tax levied in Austria. Its primary purpose is to incentivize the purchase of more environmentally friendly vehicles by linking the tax amount directly to a vehicle's CO2 emissions and purchase price or market value. This tax is a significant component of the total cost associated with acquiring a motor vehicle in Austria, whether it's new from a domestic dealer or imported.

When Does NoVA Apply?

NoVA is triggered when a vehicle is first put into circulation in Austria. This typically occurs in several scenarios:

• Purchase of a New Vehicle: If you buy a new vehicle from an Austrian dealer, the NoVA is included in the purchase price and the dealer is responsible for remitting it.
• Import from Abroad: For new vehicles purchased from a foreign dealer or used vehicles imported into Austria that have not previously been subject to NoVA, the buyer must pay the tax directly to the Austrian tax authorities (Finanzamt). Vehicle registration cannot proceed until NoVA has been paid and cleared by the tax administration.
• Change of Use for Exempted Vehicles: If a vehicle initially exempted from NoVA (e.g., for taxi services or diplomatic use) is subsequently used for a non-exempt purpose, the tax becomes due.
• Illegal Use of Foreign-Registered Vehicles: If a vehicle with foreign license plates has its permanent base in Austria, the NoVA may be levied retrospectively.

Which Vehicles are Affected by NoVA?

Historically, NoVA applied to passenger cars, combination vehicles, motorcycles, and quads. Since July 1, 2021, the scope expanded to include certain light commercial vehicles (N1 class) with a maximum permissible weight of up to 3,500 kilograms. The specific classification of vehicles subject to NoVA is based on their legal categorization within vehicle classes (e.g., M1 for passenger cars, L3e for motorcycles).

NoVA Exemptions and Reimbursements

Several situations allow for exemption from NoVA or enable a reimbursement of the paid tax:

• Zero-Emission Vehicles: Vehicles that produce no CO2 emissions due to their propulsion type, such as electric cars and hydrogen vehicles, are exempt.
• Small Motorcycles/Quads: Certain small two-wheeled mopeds and quads with an engine capacity of 125 cm³ or less are also exempt.
• Specific Use Cases: Vehicles used for certain professional purposes (e.g., driving schools, taxis, rental cars, ambulances, funeral vehicles) may be exempt or eligible for reimbursement upon application, provided the specific use is proven. Exemptions also apply to vehicles for people with disabilities, police, or military forces, often requiring a block in the registration database.
• Export: If a vehicle for which NoVA was paid is exported from Austria (including to other EU member states), a reimbursement can generally be claimed.

How is NoVA Calculated?

NoVA is calculated as a percentage of the vehicle's net purchase price (for new vehicles) or its fair market value (for used imports). The percentage rate is primarily determined by the vehicle's CO2 emission value (measured in g/km) according to specific testing procedures like WLTP (Worldwide harmonized Light vehicles Test Procedure) for cars and WMTC (World Motorcycle Test Cycle) for motorcycles. The calculation involves:

1. Base CO2 Value: Subtracting a baseline CO2 value from the vehicle's actual emissions.
2. Division Factor: Dividing the result by a specific factor (e.g., 5 for cars, 4 for motorcycles).
3. Tax Rate: The rounded result gives the percentage tax rate.
4. Malus System: For vehicles with very high CO2 emissions exceeding certain thresholds, an additional 'malus' surcharge per gram of CO2 is added to the tax amount.
5. Deduction: A fixed deduction (e.g., 350 Euros for cars) is then subtracted from the calculated tax amount.

It's important to note that specific parameters in the calculation formula, such as the CO2 deduction, malus thresholds, and maximum tax rates, are subject to annual adjustments by the Austrian government to continually steer towards lower-emission vehicles.

NoVA for Imported Vehicles in Austria

Importing a vehicle into Austria has specific NoVA implications. If a vehicle was previously registered in another EU country, the NoVA due in Austria depends on its initial EU registration date. For vehicles first registered in the EU before January 1, 1992, NoVA is generally not applicable, as the tax was introduced in Austria after this date. For vehicles registered in the EU after this date, NoVA applies, with the specific calculation rules depending on the Austrian law valid at the time of the vehicle's first EU registration. For used imports, the Malus (surcharge for high CO2) component may be proportionally reduced based on the vehicle's age and depreciation.