FINANCE / ADMINISTRATION

New motor vehicle tax regulation

The Association of International Motor Vehicle Manufacturers (VDIK) welcomes the switch of the motor vehicle tax over to a tax based on CO2 emissions, which will go into effect on July 1, 2009. This change will mean the implementation of a significant number of VDIK demands. VDIK particularly supports a linear course for taxing CO2 emissions, a gradual decrease in the CO2 tax-free allowance as of 2012 as incentive for drivers to purchase cars with low CO2 emissions. Since January 1st, 2014, counts 95 g/km CO2 for the tax-exempt.

The link below will take you directly to the motor vehicle tax calculator provided by the German Federal Ministry of Finance. You can use it to calculate your motor vehicle tax for CO2 emissions.

The main aspects of the motor vehicle tax for CO2 emissions are:

  1. Drivers will have to pay a linear tax rate of two euros per gram and kilometer for CO2 emissions.
  2. An allowance for CO2 emissions is counted. Drivers will not have to pay taxes on this amount. For cars registered before December 31, 2011, this allowance will be 120 g/km. For those registered first time between January 1, 2012, and December 31, 2013, the allowance will be 110 g/km and cars registered first time after December 31, 2013, will have an allowance of
    95 g/km.
  3. Additionally, passenger cars a basic amount of two euros for each 100 cm³ of cylinder capacity for gasoline engines and 9.50 euros for each 100 cm³ of cylinder capacity for diesel engines will have to be paid regardless of the amount of CO2 emissions. This also applies to cars whose CO2 emissions are below the allowance amount.
  4. Cars that are registered between November 5, 2008, and June 30, 2009, will have to undergo an official inspection after the car tax relief period expires to determine which car tax class makes more sense for the owner, either the traditional one, which is based on engine capacity, or the new option. Motor vehicle tax will then be applied based on the favorable class.

Vehicles with purely electric drives that were or are initially registered before 18 May 2011 or after 31 December 2015 are exempt from motor vehicle tax for five years. Vehicles initially registered during the period from 18 May 2011 through 31 December 2015 are tax-exempt for ten years. After the exemption expires, the vehicles with electric motors will be taxed according to their maximum permissible weight. The resulting amount of tax will be reduced by half.

Older passenger cars registered for the first time before 05 November 2008, and passenger cars registered for the first time between 05 November 2008 and 30 June 2009, for which it has been determined that taxation solely based on engine capacity leads to a lower tax burden, will be taxed under the old motor vehicle tax system by multiplying the tax rate applicable for the vehicle's emission category with its engine capacity.

An overview of the current motor vehicle tax rates with their respective emission-related code numbers is shown below. Here, the surcharges for diesel vehicles possibly applicable as of 1 April 2007 must be taken into account additionally:

Passenger vehicle group

Tax rate since 01 Jan. 2005

so-called Euro-III or D3/Euro-IV or D4/3-Litre passenger cars
(code no. 30, 31, 32, 33, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70)

 

- Gasoline

6.75 EUR

- Diesel

15.44 EUR

so-called Euro II-passenger cars (code no. 25, 26, 27, 35, 49, 50, 51, 52)

 

- Gasoline

7.36 EUR

- Diesel

16.05 EUR

so-called Euro-I passenger cars and equivalent (code no. 01, 02, 03 1, 2  or 3, 043, 093, 11, 12, 13, 14, 16, 18, 21, 22, 28, 29, 34, 77)

 

- Gasoline

15.13 EUR

- Diesel

27.35 EUR

Other passenger cars not restricted during ozone alarms (code no. 103, 153, 17, 19, 20, 23, 24)

 

- Gasoline

21.07 EUR

- Diesel

33.29 EUR

Passenger cars restricted during ozone alarms - low-emission* (code no. 03, 04, 054, 09)

 

- Gasoline

25.36 EUR

- Diesel

37.58 EUR

Passenger cars classified as emission-reduced or not low-emission (e.g. gasoline vehicles without catalytic converter) (code no. 00, 05, 06, 07, 08, 10, 15, 88)

 

-Gasoline

25.36 EUR

- Diesel

37.58 EUR


* or emission-reduced

1 In the case of vehicles with a displacement of more than 2,000 ccm, the code number serves as proof without restriction, provided that it was allocated before 26 July 1995.

2 In the case of vehicles with a displacement between 1,400 and 2,000 ccm, the manufacturer must additionally certify that one of the requirements specified in the annex to Section 40 c Para. 1 of the Federal Immission Control Act (BlmSchG) under Nr. 2.2.1 (Annex XXIII StVZO) 2.2.2 (Annex III A of D 70/220/EEC) or 2.2.4 (D 91/441/EEC) has been met. These requirements are also deemed to have been met by vehicles which have been retrofitted through technical means to improve their exhaust emission performance, as long as compliance with the exhaust emission limits in one of the above regulations has been certified by the manufacturer. Since Annex XXV StVZO only applies to vehicles with a displacement of 1,400 ccm or more, No. 2.2.3. in the Annex to Section 40c Para. 1 (BlmSchG) does not apply, as Directive 89/458/EEC specified there only applies to vehicles with a displacement of less than 1,400 ccm.

3 Vehicles with spark ignition engines (gasoline engines) must be proven to have been equipped with catalytic converter and controlled carburetion (Gkat) prior to 26 July 1995. This is deemed to have been proven if code number "51" and drive type "gasoline/Gkat" are entered in Section 5 of the vehicle registration book/document. A corresponding entry in section 33 has the same effect. The information in the vehicle registration book/document of older vehicles equipped with Gkat shall be amended accordingly by the registration authority if necessary.

4 Only applies to vehicles registered for the first time prior to 01 October 1986 and classified as emission-reduced A prior to 01 January 1988.