NoVA increase and calculation: This is how new cars become more expensive

On January 1, 2020, the tax authorities turned the tax screw when buying a car: the calculation of the Standard fuel consumption tax (NoVA), which is due when you buy a new car (or when you register a car for the preceding in Austria)..

On July 1, 2021, the first phase of the tax increase when buying new cars started. Already in January the Formula for calculating the underlying standard consumption tax, short NoVA, changed, which means that around half of all new cars have been subject to higher taxes since then. Now they will Rules tightened – and year after year up to and including 2024.

The reason for this is the continuously falling CO2 limit values. In July 2021, the penalty limit fell from 275 grams of CO2 emissions per kilometer (g/km) to 200 g/km. The The penalty limit will be reduced annually by a further 15 g/km CO2 emissions to 155 grams CO2/km up to and including 2024.

The aim is to achieve a steering effect with the so-called standard consumption tax (NoVA) and thus encourage car buyers to buy new cars with the lowest possible CO2 emissions. There is no NoVA for pure electric cars.

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Penalty threshold decreases, costs increase

In the case of more powerful vehicles, there is also an ongoing tightening of the CO2 penalty limit.

Therefore, for vehicles such as a Porsche Carrera with CO2 emissions of 231 g/km, the NoVA increased by 1,550 euros as of July 1, 2021, for example.

At the same time, the maximum tax rate for the NoVA was raised from 32 to 50 percent from July 1, 2021. By 2024, the maximum tax rate for passenger cars will rise steadily to up to 80 percent of the purchase price. For motorcycles, the maximum tax rate will increase from 20 percent to 30 percent.

NoVA for small trucks

Also for light commercial vehicles up to 3.5 tons in category N1, a NoVA is now due. The vehicles affected are primarily panel vans and flatbed vehicles. The calculation is made as follows: CO2 emission value in g/km minus 165 g/km divided by 5.

The maximum tax rate of 50 percent applies from CO2 emissions over 415 g/km plus 50 euros per g/km (malus amount) over 253 g/km, less a deduction of 350 euros.

Demonstration cars and daily registrations

But there are also tax breaks, at least for car dealers. When purchasing the coveted demonstration vehicles and vehicles with one-day registrations for the preceding no NoVA for the dealer to pay. If the demonstration vehicle or the recently registered vehicle is sold to a customer, the net sales price is the assessment basis for the NoVA.

One-day registrations are motor vehicles that are registered at the vehicle dealership and are not used on public roads, provided the registration does not last longer than three months. The tax liability only arises from the day of the excess. A demonstration car is understood to mean cars that new car dealers use for viewing and test drives and are not yet registered for an end user. Both daily registrations and demonstration cars are offered with quite high discounts compared to the new price.

Insurance with a new calculation mode
As of October 1, 2020, the calculation for the motor-related insurance tax has also changed. From this point in time, the tax for passenger cars will no longer only be based on the power of the combustion engine in kW, but also on the CO2 emissions. In the case of motorcycles, it is no longer just the displacement that is used as the basis for calculating the engine-related insurance tax, but also the CO2 emissions. This caused the tax to rise for numerous models.

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The NoVA calculation examples

Comparison of new car price changes due to the 2020 NoVA adjustment

• The 200 hp E-Class Mercedes was 200 euros cheaper, and the NoVA fell on several models
  According to spokesman Bernhard Bauer, nothing has changed in many Mercedes models. With some models, the NoVA even dropped, despite the sometimes sharp increase in exhaust gas values ​​after the new CO2 exhaust gas measurement according to WLTP.

  The officially measured CO2 emissions climbed through the new emissions measurement for the Mercedes E-Class, with diesel engine and automatic, in the Austria Edition, from 118 g/CO2 according to the old measuring method according to NEDC to 141 g/CO2 according to WLTP. The new calculation reduced the NoVA slightly by one percent to five percent. The price of this E-Class 220 d in the basic version fell by around 180 euros.

  Other models in which the NoVA at Mercedes fell (in each case in the automatic version): The A 180 reduced the NoVA by two percent to zero, the Mercedes B 180 d from two to one percent, and the Mercedes C 180 d from six to five percent , for the C 200 d the car purchase tax fell from six to five percent.

• VW: Passat was a positive 300 euros cheaper
  For the VW Passat 1.5 TSI, the model with the smallest engine in its series and CO2 emissions of 117 g/km, buyers paid a NoVA of six percent in 2019; four percent in 2020. The Passat in question became cheaper by 2,669 euros from 2020.
• Audi with around 290 hp was 2,237 euros more expensive, 350 hp model by 547 euros
  In the case of the Audi, the all-wheel drive models of the A6 were used as NoVA examples. The price of the 286 hp model, the 50 TDI, rose the most. For this one paid 2,237 euros more. The price increase for the 230 hp variant was somewhat less pronounced, but the prices also rose by more than 2,100 euros. The 350 hp model, the A6 Allrad Quattro 55 TDI, recorded the smallest increase. The costs increased by a comparatively moderate 547 euros. This is also due to the low NoVA increase of just one percent to 17 percent.
• Porsche 911: purchase price fell by 1,000 euros, insurance rose by 30 euros per month
  Porsche: When buying a 450 hp 911 S Coupé, buyers paid 1,020 euros less than in 2019. With CO2 emissions of 205 g/km according to the NEDC and a purchase price of around 145,000 euros, this was of little consequence. The motor-related insurance tax, nonetheless, rose from 242 euros per month to 271 euros.
• Seat SUV: Around 190 euros more expensive
  Seat Ateca Style 1.5 TSI DSG: Previously, a NoVA of 1,460 euros was paid for the standard model, less a NoVA tax deduction of 300 euros, i.e. 1,160 euros. The NoVA increased by 194 euros for the SUV with the basic equipment. The motor-related insurance tax rose from 59.53 euros per month to 64.08 euros per month.
• Škoda: 190 hp Karoq Scout with a price increase of over 600 euros
  Škoda Karoq 4×4 with 190 hp and diesel drive: the NoVA rose from 10 to 12 percent. The emissions tested by WLTP have increased from 138 g/km to 177 g/km thanks to the new emissions test. What the NoVA reflected. Including the gasoline discount of 350 euros, the new car price rose by 608 euros.