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- Austria Introduces Motor-Related Insurance Tax for Electric Vehicles
Published: 2025-03-07
Summary
Austria is implementing a motor-related insurance tax for electric vehicles, leading to potential additional annual costs. The tax calculation considers both the continuous performance and weight of the vehicle. The ÖAMTC advocates for tax transparency during vehicle purchases and cautions against potential inaccuracies in registration documents.
New Tax Implications for Electric Car Owners
Electric car owners in Austria face new financial considerations as the government introduces a motor-related insurance tax. According to calculations made on Friday by the ÖAMTC,these additional costs could range from approximately 70 to over 2,000 euros annually,depending on the vehicle’s registered performance and weight.The ÖAMTC noted, ”If it is indeed assumed that electromobility will also be increasingly received in the low -performance and lighter vehicle segments in the future, taxation for many vehicles should be in the lower area.”
The introduction of this motor-related insurance tax for electric cars by the Austrian government marks a shift in policy. Previously, electric vehicles were exempt from this tax, which was applied to combustion engines based on engine power and CO2 emissions. The new tax will affect both existing electric vehicles and those registered in the future.
Impact on Tesla Y Owners
Calculations by *The Standard* and *Die presse*, in collaboration with ÖAMTC and ARBÖ, illustrate the potential financial impact. For instance, a skoda Enyaq, a popular mid-range electric vehicle for families, could see an average increase of 480 euros per year due to the insurance tax. the BMW i4 might incur additional costs of around 530 euros. Though, some vehicles face considerably higher taxes, with a Tesla Y potentially costing an average of 950 euros more per year. The BYD SEAL could become approximately 813 euros more expensive, while the smaller BYD Dolphin might see an increase of 242 euros.
Tax Calculation Explained
Consider a VW ID.3 Pro,comparable to a VW Golf,with an output of 170 kW (231 hp) and a weight of 2,280 kilograms. This vehicle would incur a monthly tax of 42.85 euros, totaling 514.20 euros annually.This amount is similar to the tax on a VW Golf Sport TSI with 110 kW (150 hp).
Continuous Performance as the Basis
The tax proposal outlines a specific calculation method. The performance of an electric car is reduced by 45 kilowatts. The tax is then applied as follows: 0.25 euros per kW for the first 35 kilowatts, 0.35 euros for the next 25 kilowatts, and 0.45 euros for each additional kilowatt. Notably, the Ministry of finance uses the continuous performance of the electric motor, rather than the peak performance, for this calculation. For a VW ID.3 Pro, the continuous performance is 70 kW, according to *Die Presse*.
In addition to performance, the vehicle’s weight is also factored into the tax. The vehicle weight is reduced by 900 kilograms. The tax is then applied as follows: 0.015 euros per kilogram for the first 500 kilograms, 0.030 euros for the next 700 kilograms, and 0.045 euros for each kilogram exceeding that.
ÖAMTC Calls for Transparency
ÖAMTC traffic expert Martin Grasslober emphasized the need for transparency regarding these taxes during the car buying process. “If you only deal with how much you have to pay when you take out the insurance company, it is too late,” he stated.
Grasslober also raised concerns about potential inaccuracies in registration certificates: “The new formula for e-cars is based on the weight and performance in the registration certificate. For the latter, there is a requirement that the long-term performance has to be here. As the ÖAMTC was able to find out in advance, there have been very occasionally incorrect entries. Regarding the tax changes that have become known today, the club has turned to the manufacturers concerned.”
Changes affect Plug-in Hybrids
The engine-related insurance tax calculation is also being tightened for plug-in hybrids, potentially increasing the tax burden for many existing vehicles.The ÖAMTC advises caution when purchasing plug-in hybrids, as the assumed electrically driven proportion in the determination of CO2 emissions will decrease in the future, leading to increased emissions. “Although politics has taken into account this in taxation, the club also recommends checking the expected burden before buying a car here.”
The engine-related insurance tax will also extend to electric motorcycles,although “e-mopeds” remain excluded.
Reactions to the New Tax
The Greens have voiced strong opposition to the new tax. “the fact that emission-free motor vehicles are now included in the engine-related insurance tax is the wholly wrong signal in the current climate and industrial policy situation,”
This article provides a comprehensive overview of the new motor-related insurance tax for electric vehicles in Austria, effective as of March 7, 2025. It aims to answer key questions and provide clarity on how this tax impacts electric car owners.
Q: What is the new motor-related insurance tax in Austria?
A: Austria is introducing a motor-related insurance tax for electric vehicles. Previously, electric vehicles were exempt from this tax, which was applied to combustion engine vehicles based on engine power and CO2 emissions. This new tax will affect both existing electric vehicles and those registered in the future.
Q: Why is Austria introducing this tax on electric vehicles?
A: The provided document doesn’t explicitly state the government’s rationale for introducing this tax. Though one could infer that it aims to generate revenue from electric vehicles similar to that of combustion engine vehicles.
Q: How is the motor-related insurance tax calculated for electric vehicles?
A: The tax calculation considers both the continuous performance (in kW) and the weight (in kilograms) of the vehicle. The calculation involves several steps:
Performance Calculation:
The continuous performance of the electric car is reduced by 45 kW.
The tax is then applied:
€0.25 per kW for the first 35 kW
€0.35 per kW for the next 25 kW
€0.45 per kW for each additional kW
Weight Calculation:
The vehicle weight is reduced by 900 kg.
The tax is then applied:
€0.015 per kg for the first 500 kg
€0.030 per kg for the next 700 kg
€0.045 per kg for each kg exceeding that
Q: what is “continuous performance” and why is it crucial for the tax calculation?
A: The Ministry of Finance uses the continuous performance of the electric motor, rather than the peak performance, for the tax calculation. This is a crucial distinction, as continuous performance is typically lower than peak performance, affecting the final tax amount.
Q: How much will the new tax cost electric car owners?
A: The additional annual costs could range from approximately €70 to over €2,000,depending on the vehicle’s registered performance and weight. For specific examples:
Skoda Enyaq: Could see an average increase of €480 per year.
BMW i4: Might incur additional costs of around €530.
Tesla Y: Perhaps costing an average of €950 more per year.
BYD SEAL: Could become approximately €813 more expensive.
BYD Dolphin: Might see an increase of €242.
VW ID.3 Pro (170 kW, 2,280 kg): Roughly €514.20 annually (€42.85 monthly).
Q: Will Plug-in hybrid vehicles be affected?
A: Yes, The engine-related insurance tax calculation is also being tightened for plug-in hybrids, potentially increasing the tax burden for many existing vehicles. The ÖAMTC advises caution when purchasing plug-in hybrids, as the assumed electrically driven proportion in the determination of CO2 emissions will decrease in the future, leading to increased emissions.
Q: Are there any concerns regarding the implementation of this tax?
A: Yes,the ÖAMTC (Austrian Automobile,Motorcycle and Touring Club) has raised concerns about the need for clarity regarding these taxes during the car buying process and potential inaccuracies in registration certificates,particularly regarding the long-term performance data of electric vehicles.
Q: Does this tax impact electric motorcycles?
A: The engine-related insurance tax will also extend to electric motorcycles, although “e-mopeds” remain excluded.
Q: What is the reaction to this new tax?
A: The Greens have voiced strong opposition to the new tax, stating it sends “the wholly wrong signal in the current climate and industrial policy situation.”
Q: What does ÖAMTC recommend to car buyers?
A: The ÖAMTC recommends checking the expected tax burden before buying a car, especially plug-in hybrids, to avoid unexpected financial implications.They also advise verifying the accuracy of the performance and weight data in the registration certificate.
Further Considerations:
VIT (Value Added Tax) on Motor Vehicles: According to Sovos, VIT is required on motor vehicles weighing up to 3.5 tonnes in Austria.Vehicles exceeding this weight are subject to motor vehicle tax instead.
Tax Exemptions: Exemptions may apply based on factors, the specifics of which are not detailed in the provided documents but generally concern vehicle usage and the policyholder’s status.