Consumption Tax Trends 2024

4. Taxing Vehicles and their Use

4.1. Introduction

Taxes related to the purchase, ownership and usage of vehicles were introduced in most OECD countries in the first half of the 20^th century and have become an important source of tax revenue for many governments. Current taxes on vehicles result from a long evolution and reflect a variety of influences beyond the need to raise revenue. Progressively, geographical, industrial, social, energy, transport, urban and environmental policy considerations have all had an influence on the level and structure of taxation. Also, the distributional impact of taxes on vehicles has evolved. Many of these taxes were instituted at a time when cars were considered luxury items. Wider ownership of cars over time (many low-income households own at least one car today) has reduced progressivity of taxes on vehicles.

All OECD countries now rely on a wide range of tax instruments to raise revenue from both private and commercial vehicle owners and road users. Vehicle and vehicle usage taxation, in its widest definition, represents a prime example of the use of the whole spectrum of consumption taxes for taxing vehicles and their use, including specific taxes on vehicle characteristics, use, or value. In a growing number of countries, governments are gradually modulating these taxes in line with their environmental or climate objectives.

Consumption taxes on road vehicles are multiple and include:

• Taxes on the purchase (including VAT and retail sales taxes) and registration of motor vehicles (including fees and charges, which are considered as taxes for the purpose of this chapter), payable once at the time of acquisition and/or the first putting into service of a vehicle (see Annex 4.A Tables 4.A.1 and 4.A.2),

• Periodic taxes payable in connection with the ownership or use of the vehicles (see Annex 4.A Table 4.A.3),

• Taxes on road fuels,

• Taxes on vehicle insurance premiums,

• Import duties,

• Other taxes (e.g. road tolls and congestion charges).

In most countries, vehicle taxation is a mixture of one-off taxes (applied at the time of purchase, import or entry into service) and recurrent taxes (applied to vehicle owners or use). These taxes are applied according to the price or value of the vehicle (particularly for purchase and import taxes) and, according to vehicle characteristics such as pollutant emissions, weight, engine power, number of axles, age, fuel consumption, equipment, suspension, engine capacity, number of seats, type of fuel used, electric propulsion or distance travelled.

While this publication covers the main taxes and charges on road motor vehicles, i.e. those relating to the purchase/registration and use of vehicles, these cannot be considered in isolation from the other tax bases and rates. Among the other elements to be taken into account when considering the taxation of vehicles as a whole (but not covered in this publication) are insurance premium taxes, specific road tolls (bridge or motorway tolls, congestion charges, and distance charges), import duties and company car taxation. (Harding, 2014[1]),

This chapter describes the taxes imposed on the purchase, registration and use of road vehicles in OECD countries, highlighting in particular those that include environmental criteria (Section 4.2). It also covers taxes on aviation fuels (insofar as the data collected here are not presented as such in the IEA databases - unlike taxes on road fuels), showing their level, including the tax exemptions that often apply to these fuels (Section 4.3).

4.2. Taxes on road vehicles are increasingly designed to influence consumer behaviour for environmental purposes

There is growing awareness among countries that a transition to net zero greenhouse gas emissions by around the middle of the century is essential for containing the risks of dangerous climate change (OECD, 2021[2]). Reaching climate neutrality by mid-century, in line with the 2015 Paris Agreement’s goal, demands deep transformations (Filippo Maria D’Arcangelo Ilai Levin Alessia Pagani Mauro Pisu Åsa Johansson, 2022[3]) and these transformations are particularly urgent given the rapidly closing window to act, the state of the climate system and the gap between current efforts and the goals of the Paris Agreement (Sirini Jeudy-Hugo, 2023[4]). These transformations include the development of comprehensive policy mixes combining direct and indirect emission pricing, standards and regulations, and complementary policies such as innovation support and offsetting adverse distributional effects.

Globally, the transport sector produces over 20% of global energy-related CO₂ emissions and has the highest reliance on fossil fuels of all sectors (IEA, 2023[5]). Yet transport is relatively difficult to decarbonise, due to its high dependence on oil and the complexity that arises from individuals’ own transport choices. Policy makers must address and mitigate emissions from the sector in line with the goals of the Paris Agreement in a context where transport demand will have to be met in a socially and environmentally just manner (ITF, 2023[6]).

Well-designed taxes play a direct role by sending the right price signals and providing the right incentives for sustainable practices of producers, users and consumers (EU Parliament, 2021[7]). Governments increasingly use taxation to influence consumer behaviour with a view to reducing CO₂ emissions from road transport. They notably adopt or adapt a number of tax instruments, including one-off taxes such as registration taxes, or recurrent taxes such as annual circulation taxes based on levels of CO₂ or other polluting emissions. However, the effectiveness and efficiency of such tax policies depends largely on how they are designed and implemented as part of an overall policy framework taking into account available alternatives, interactions with other policies, and public support (Van Dender, 2020[8]). In this regard, adequate compensation schemes and support to switch to cleaner technologies are particularly important policy components to protect the most vulnerable households (Cristian Alonso and Joey Kilpatrick, 2022[9]).

Against this backdrop, taxes on road vehicles have been progressively adjusted to influence consumer behaviour to curb transport impacts, in particular environmental and climate impacts. Energy and environmental considerations have led to a progressive adjustment of the taxes on the purchase and registration of road vehicles to take account, for example, of their fuel efficiency or CO₂ and other polluting emissions. Some of these taxes have a direct relationship with environmental objectives, for example where the tax differentiates on the basis of CO₂ emissions of the vehicles, while others may only have an indirect connection such as taxes based on the weight of the vehicle.

4.2.1. Taxes on the purchase and registration of road vehicles are increasingly used to induce consumers to buy less polluting vehicles

All OECD countries levy national and sometimes sub-national taxes on the purchase and registration of road vehicles. These taxes may include VAT or sales taxes and also duties, fees and charges associated with the registration of a vehicle. Their level and structure vary considerably among OECD countries (see Annex 4.A Tables 4.A.1 and 4.A.2). They are based on a large diversity of criteria including combinations of these. The main criteria for assessing these taxes can include:

• The price or value of the vehicle,

• The direct environmental impact, i.e. CO₂ emissions and other polluting emissions,

• The characteristics of the vehicle such as the type of fuel used, the weight, the cylinder capacity and the engine power. These may be indirectly connected with polluting emissions but were generally not introduced for environmental purposes,

• The specific features of vehicles for the transportation of goods such as the number of axles, cargo room, number of seats, etc.,

• Social considerations incl. preferential treatment of emergency vehicles, ambulances, vehicles for people with disabilities, vehicles for public transport, etc.,

• The private or commercial use of the vehicle.

A number of specific elements can further be taken into consideration for determining the tax burden, such as the presence of safety equipment, air conditioning, etc. A specific tax applies to tyres in the United States. Taxation may also depend on the age and date of registration of the vehicle in several countries.

All OECD countries levy VAT on the sale of vehicles at the standard rate, except the United States that does not have a VAT and where retail sales taxes are imposed at sub-national level. Unlike final consumers, businesses will in principle have a right to an input tax credit for the VAT incurred on the purchase of vehicles for professional use. However, a large majority of OECD countries with VAT (20 out of 37) prohibit or severely restrict this right to deduct input VAT, particularly for passenger vehicles (see Chapter 2 and Annex Table 2.A.4) but, four of these countries (Austria, Canada, Lithuania and Slovenia) offer a full or greater right of deduction for vehicles that do not emit CO₂ in order to encourage their purchase by businesses.

In many countries VAT is also levied on the sale of second-hand vehicles under a margin scheme when they are sold by a professional (sales of their own second-hand cars by individuals are not subject to VAT), whereby the tax base for VAT is determined on the basis of the margin of the professional reseller rather than on the full sale price of the vehicle.

Almost all OECD countries vary vehicle purchase or registration taxes according to pollutant emissions.

Differentiating taxes on the purchase or registration of road vehicles to take account of their polluting emissions can give vehicle purchasers an immediate incentive to buy a vehicle that pollutes less. This practice is now observed in 34 of the 38 OECD countries. Annex 4.A Table 4.A.1 shows that all OECD countries except Colombia, Estonia, Sweden, and Switzerland have incorporated environmental or fuel economy criteria into the tax structure and/or eligibility conditions for vehicle purchase incentives, whether at national or sub-national level.

In 18 of these countries (Australia, Austria, Belgium, Canada, Czechia, Denmark, Finland, France, Greece, Iceland, Ireland, Italy, Lithuania, Netherlands, Norway, Portugal, Slovenia, and Spain), the CO₂ emissions are directly considered to determine the level of taxation. Conversely, New Zealand and Sweden ended their tax reduction measures for low CO₂ emission vehicles in December 2023 and November 2022 respectively.

Eight countries apply either a “bonus” (i.e. a direct subsidy paid by the government or a local authority on the purchase of a vehicle) to the buyers of selected vehicles with low or no CO₂ emissions (Canada, France, Iceland, Italy, Korea, Latvia, Luxembourg, and the United States). Germany and Sweden have ended their bonus schemes for the purchase of electric or hybrid vehicles in December 2023 and November 2022 respectively. Some countries apply a “malus” (i.e. an additional tax or charge on vehicles with high CO₂ emissions (Belgium, Canada, France, and Italy). In some of these countries the system is designed as a “feebate” i.e. a budget-neutral system with both a bonus and a malus compensating for each other (e.g. France, Italy, and Sweden until recently). In addition to Germany and Sweden, two countries have ended their tax incentives for electric vehicles: Switzerland ended the exemption of automobile tax in November 2023 and New Zealand ended the exemption of road user charge in April 2024.

More than half of OECD countries (22 out of 38) apply (sometimes at sub-national level) a reduction in taxes, fees or registration charges, or even a total exemption, to hybrid or full-electric vehicles. Furthermore, in Chile, Ireland, Israel and Norway, the level of nitrogen oxide (NOx) emissions is taken into account in the registration tax scale.

But the level and structure of taxes vary widely between OECD countries

Annex 4.A Table 4.A.2 provides an illustration of the cumulative effect of VAT, (local) taxes on registration, fees and environmental taxes on the purchase and registration of some typical vehicles (with electric, hybrid and combustion engines). Since rates, charges and rebates may differ at sub-national level in some countries, the table shows the overall tax calculations for the purchase and registration of these vehicles in the capital city.

In the category of the highest taxed vehicles (i.e. four wheel drive vehicle with combustion engine emitting more than 290gr CO₂/km) the total tax burden ranges from less than 20% of the ex-tax price of the vehicle in Bern, Switzerland and in Washington, United States (VAT rate of 8.1%% and a sales tax of 6% respectively, with relatively low registration taxes and no CO₂ tax) up to more than 150% of the ex-tax price in The Hague, Netherlands (VAT rate of 21% and a relatively high registration tax fully based on CO₂ emissions) and Copenhagen, Denmark (VAT rate of 25% and relatively high registration taxes based on value and CO₂ emissions). In Ankara, Türkiye, the total purchase and registration taxes can amount to about 200% of the ex-tax price due to a very high registration tax.

On the other hand, tax rebates and bonuses on (fully) electric vehicles may reduce the amount of these taxes to less than 10% of the ex-tax price in Austria (Vienna), Canada (Ottawa), Costa Rica (San Jose), Denmark (Copenhagen), France (Paris), Greece (Athens), Lithuania (Vilnius), Luxembourg, Norway (Oslo), Slovenia (Lubljana), or even provide a net purchase aid in Luxembourg and the United States (Washington).

These figures illustrate the very large differences in taxation across OECD countries both in terms of the total amount of taxes and the structure of these taxes. Even within the integrated market of the EU, there is no harmonisation or even approximation of tax structures or rates on motor vehicles. However, a key factor behind the slow replacement of the polluting car fleet with zero-emission vehicles are lower national purchase and registration taxes for cars, which often do not reflect carbon-intensity (ACEA, 2022[137]). However, the risk of cross-border shopping in countries with lower taxes is very limited as motor vehicles need to be registered with a unique identification number in the principal country of use. VAT levied on the importation of a vehicle (or on its "acquisition" for cross-border sales within the EU) will generally be due in the country of registration.

4.2.2. While recurrent taxes on ownership or use also vary widely across OECD countries, they are used increasingly to pursue environmental objectives

All OECD countries levy taxes on ownership or use of motor vehicles, or both (see Annex 4.A Table 4.A.3). These taxes include recurring charges and taxes (annual or semi-annual registration fees, motor vehicle taxes, road taxes, licencing fees, etc.) levied on the right to drive on public roads. As was the case for taxes on vehicle purchase and registration, these recurrent taxes take many forms across OECD countries and their level varies widely. The main elements used to assess these taxes are very similar to those used for assessing taxes on the purchase and registration of vehicles, such as use (commercial or not), vehicle type, type of fuel, engine size, age, emissions of pollutants, and fuel efficiency. In about one third of OECD countries (13 out of 38 i.e. Australia, Belgium, Canada, Chile, Colombia, Japan, Mexico, Netherlands, Poland, Portugal, Spain, Switzerland, and the United States) local taxes are levied on the ownership or use of motor vehicles.

As for taxes on purchase and registration of motor vehicles, differentiating recurrent taxes on ownership or use on the basis of polluting emission has become widespread among OECD countries. About two thirds of these countries (24 out of 38) include CO₂ emissions in the criteria for assessing these taxes and/or apply an exemption or tax reduction to hybrid and electric vehicles (Austria, Belgium, Chile, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Luxembourg, Mexico, Netherlands, Portugal, Slovak Republic, Slovenia, Sweden, Switzerland, Türkiye, and the United Kingdom). Fourteen of these countries (Austria, Belgium, Denmark, Finland, France, Greece, Iceland, Ireland, Italy, Netherlands, Norway, Portugal, Slovenia, and Sweden) apply such differentiation for both purchase/registration and periodic taxes.

All OECD countries except Canada, Colombia, Costa Rica, Germany, Mexico, New Zealand and Sweden, reported the application of specific tax rates and/or specific tax bases for commercial vehicles (lorries, trucks, heavy goods vehicles, buses, utility vehicles). Criteria for assessing these taxes include the weight, the loading capacity, the number of axles and the type of vehicle (e.g. semi-trailers).

4.3. Aviation fuels are often subject to tax exemptions

This section provides an overview of VAT and excise taxes applied to the two main categories of fuels destined to aircrafts, i.e. JET A-1 fuel used in turbine engines and AVGAS used in piston-engine aircrafts.

Annex 4.A Table 4.A.4 shows the excise and VAT rates applied to these types of fuels (hereafter “aviation fuels”) in OECD member countries and, where applicable, other specific taxes on the provision of those fuels to aircraft (e.g. carbon tax).Other taxes applied to air transport (ticket taxes, airport taxes, etc.) and emissions trading schemes (ETS) are not covered in this publication.

The provision of aviation fuels to enterprises operating aircraft for international commercial flights (i.e. passenger transport or cargo) is subject to a zero rate of VAT in all OECD countries that operate a VAT, or subject to a full refund of input VAT (Chile). An exception is Colombia, where it is subject to the reduced VAT rate of 5%. The provision of aviation fuels for domestic non-commercial or pleasure flights is taxed at the standard VAT rate in all OECD countries with a VAT, except in Colombia where it is subject to the reduced VAT rate of 5%. In the United States, it is taxed at the state level, with rates varying across them. In theory, the VAT zero-rating of aviation fuel for international flights reflects the objective of relieving exports from VAT in the jurisdiction of origin so as to avoid double taxation in the jurisdiction of destination, which normally has the right to levy VAT on internationally traded goods in accordance with the destination principle. However, unlike most exported items that are normally subject to VAT in the destination country, aviation fuel used in international flights will generally remain untaxed as most of it is consumed during the international flight and the remainder is generally untaxed in accordance with the International Civil Aviation Organisation (ICAO) Convention (also known as the Chicago Convention; see below) requiring contracting states to not charge duty on aviation fuel already on board any aircraft arriving on their soil from another contracting state (all OECD countries are parties to the Convention). Since aviation fuel will typically be a business input of an enterprise large enough to be registered for VAT, this component of tax will generally be fully deductible (in the case VAT is imposed) and thus ultimately have no economic impact.

Annex 4.A Table 4.A.4 shows that all OECD countries also exempt aviation fuels from excise duties when used for commercial international flights, in contrast to fuels used in road and rail transport. They also all exempt aviation fuel for domestic commercial flights, except Australia, Canada, Costa Rica, Japan, Norway, Switzerland and the United States. The landscape is more diverse for aviation fuel used for non-commercial and pleasure flights, which is subject to excise duties in 20 OECD countries for international flights (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Poland, Portugal, Slovenia, Spain and Sweden) and in all OECD countries (except Chile, Colombia, Iceland, Israel, Korea, Mexico, Norway and New Zealand) for domestic flights.

Two OECD countries apply other (environmental) taxes to aviation fuels. Norway exempts aviation fuel from excise tax but submits it to a carbon tax, and Slovenia applies a surcharge to all aviation fuels (including for international flights) in addition to excise duties (for non-commercial and pleasure flights).

As explained above, the exemption of aviation fuels for international flights in countries of arrival results from the Chicago Convention, which lays down the basic standards and principles governing international aviation. Article 24 of the Convention forbids the taxation of fuel onboard aircraft arriving in the territory of a contracting party. However, the Convention does not forbid imposing any taxes on fuel supplied to an aircraft at the point of departure (Faber and O’Leary, 2018[10]) This tax exemption for fuels supplied to aircraft results from the network of bilateral “Air Service Agreements” (ASAs) between individual countries, which generally provide for such an exemption on the basis of reciprocity (Teusch Jonas, 2021[11]). The Chicago Convention is not applicable to domestic air transport and therefore nothing prevents countries from taxing aviation fuels on domestic flights.

Reaching climate neutrality by mid-century requires that all sectors, including aviation, cut emissions strongly. For the time being, unlike road fuels which are subject to high levels of tax, aviation fuels remain largely under-priced, reflecting lower energy tax rates and tax exemptions. Recent research suggests that, like for other transport fuels, carbon price signals in the form of kerosene taxes, may support an orderly transition in aviation. A gradually increasing tax on kerosene could strengthen the incentives for investment and innovation in clean aviation technologies and provide implementing countries with tax revenues that could be used to support clean investment and innovation, while addressing competitiveness and equity issues (Teusch Jonas, 2021[11]).

References

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[2] OECD (2021), Carbon prices in times of Covid-19, OECD, Paris.

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Annex 4.A. Taxes on vehicles

Annex Table 4.A.1. Taxes on the Purchase and Registration of Motor Vehicles

Country	Taxes/Malus1	Criteria determining the tax base and/or amount Bonus/Malus	Rebates/Bonuses/Exemptions2 3
Australia	GST: 10% Luxury Car Tax: 33% calculated on the value of most cars that exceed the luxury car tax threshold. On 1 January 2024, the luxury car tax threshold is AUD 89 332, tax inclusive (including GST) or AUD 76 950, tax inclusive (including GST) if the car’s fuel consumption is less than 7 liters per 100 kilometres. Registration fee – varies between States/Territories – may be calculated on the tare weight, value or type of vehicle. Stamp duty - varies between States/Territories - calculated on the tare weight (heavy vehicles) or value (light vehicles).	Value Fuel efficiency Weight (registration or stamp duty only) Weight CO2 emissions (subnational)	GST: exemption is provided to veterans and persons with a disability that fulfil legal requirements. Some exemptions apply from luxury car tax including: - Emergency vehicles such as ambulances etc. - Sale of vehicle is more than two years after manufacture or importation - Vehicles modified to transport a person in a wheelchair (provided it is not GST-free) - Commercial vehicles primarily used for carrying goods in business or trade - Imported by museum for public display. Eligible tourism operators and primary producers are eligible to claim a refund of Luxury Car Tax paid up to AUD 10 000 for certain cars. In some States/Territories electric or low-CO2 emission vehicles are exempt from the stamp duty /are subject to reduced rates of stamp duty
Austria	VAT: 20%. New Car Registration Tax: while the tax base is the selling price, the tax rate depends on the CO2-emissions of the car*, i.e. CO2 emissions in gram/km, reduced by 97 grams WLTP (Worldwide harmonised light-duty vehicles test procedure) for passenger cars and by 150 grams WLTP for small lorries (up to 3,5 tons), divided by 5. The rate cannot exceed 80%. For CO2 emissions above 155g/km WLTP for passenger cars or 208 g/km WLTP for small lorries, the tax increases by EUR 80 for each g/km exceeding the limit. An amount of up to EUR 350 has to be deducted from the amount of tax calculated following the above rules. *Starting from 1.1.2020 the relevant CO2-emissions are determined by WLTP (NEDC before that). Registration fee: fixed rate of EUR 119.80 per motor vehicle (+ up to EUR 49.70 processing fee for the registration office + approx. EUR 20 for other expenditures).	Value CO2 emissions	New Car Registration Tax: exemptions for demonstration vehicles, motor vehicles for driving schools, vehicles that are hired, used for guests or as taxis, motor vehicles used for short time hiring out, motor vehicles used for the transport of sick persons and for rescue services, vehicles used for the transport of corpses, vehicles used by fire brigades and accompanying vehicles for special transports, vehicles used for disabled persons. Registration fee: exemption for motor vehicles registered for the state or local authorities.
Belgium	VAT: 21% Entry into Service Tax: Flemish Region: for non-leased passenger cars, the tax rate depends on vehicle age, environmental characteristics (including CO2 emissions), the type of fuel and the European Emission Standards. For non-leased passenger cars, registered for the first time after 31/12/2020, the impact of the CO2 emissions has increased, due to the new WLTP-method for the calculation of the emission. The tax for leased vehicles is still calculated based on the engine power of the vehicle. Walloon Region: for cars, mixed cars, minibuses and motorcycles, the tax rate depends on engine power or the fiscal power (which is derived from the combustion engine capacity). When the tax determined on the basis of one parameter exceeds the tax determined on the basis of the other, the highest tax is retained. For motorcycles the amount is calculated on the basis of the kilowatt. For electric cars and electric motorcycles, the tax is set at EUR 61.50 as of fiscal year 2019. For all hybrid vehicles (cars and motorcycles), the power taken in consideration is the one supplied by the combustion engine. Cars and mixed cars are also subject to a second constitutive element of the tax on registration of vehicles, the so-called “ecomalus”, which is based on the CO2- emission of the vehicle. As from 1 January 2022 vehicles designated to the transport of goods with a maximum authorised mass of more than 3.5 tonnes are not subject to the Entry into Service Tax. Brussels Capital Region: for passenger cars, the applicable tax rate depends on the engine power of the vehicle, which is derived from either the so-called fiscal horsepower (based on the total cylinder capacity of the vehicle) or the kW (kilowatt) value of the vehicle. When the applicable tax rate varies between these two parameters, the highest tax rate applies. The tax rate is also subject to a reduction based on the age of the vehicle. Rates vary between EUR 61.50 and EUR 4.957. For hybrid vehicles, the applicable tax rate is derived from the engine power of the combustion engine. For electric cars, the applicable tax rate is set at EUR 61.50.	Value Age of vehicle Engine power Cylinder capacity Environmental characteristics (incl. CO2 emissions) Electric propulsion Type of fuel/gas Malus	All regions provide exemption of the Entry into service tax for certain vehicles used by public authorities and vehicles for disabled people and war invalids. Flemish Region: an exemption of the Entry into Service Tax is granted for purely electric vehicles. An age correction is applied for the Entry into Service Tax for used cars in a progressive scale from 90% to 10% of the registration tax or for a lump sum depending on the age of the vehicle. A flat tax rate of EUR 53 (last indexation on 01/07/2023) applies to vehicles that have been in traffic for at least 30 years. Walloon Region: for cars, mixed cars, minibuses and motorcycles older than 15 years, an age correction applies. The age is counted as from the first registration of the vehicle and provides the basis for a reduction of the tax amount on a progressive scale form 90% to 10%. The reduction is applied for each year and start from the year one. As from 1 January 2022 vehicles designated for the transportation of goods with a maximum authorised mass lower than 3.5 tonnes are subject to the Entry into Service Tax when they are not registered with the CBE (Crossroads Bank for Enterprises). Motorhomes are excluded from this rule since 1 January 2022. Brussels Capital Region: Light goods vehicles up to and including a maximum permissible laden weight of 3.5 tonnes, as well as camping cars, are not subject to the Entry into Service Tax.
Canada	GST: 5% HST: 13% or 15% for sales in the participating provinces. The following provinces have harmonised their provincial sales taxes with the federal Goods and Services Tax and therefore levy a rate of GST/HST as follows: New Brunswick, Newfoundland and Labrador, Prince Edward Island, Nova Scotia 15%; Ontario: 13%; Québec applies GST at a rate of 5% and Québec Sales Tax at a rate of 9.975%. Provincial tax rates are applicable for sales made in provinces not applying HST Automotive Air Conditioning Tax: CAD 100 per air conditioning unit. Excise tax on Fuel Inefficient Vehicles (Green Levy): vehicles (including station wagons, vans and sport utility vehicles) with a weighted fuel consumption rating of 13 or more litres per 100 kilometres (55 % city and 45% highway) are subject to an excise tax at the following rates: at least 13 but less than 14 litres per 100 kilometres: CAD 1 000; at least 14 but less than 15 litres per 100 kilometres: CAD 2 000; at least 15 but less than 16 litres per 100 kilometres: CAD 3 000; and 16 or more litres per 100 kilometres: CAD 4 000. Luxury Tax. A luxury tax applies to certain vehicles priced above CAD 100,000. The luxury tax rate is equal to the lesser of 10 per cent of the total value of the subject item or 20 per cent of the value above CAD 100,000. Each province and territory may also levy taxes or fees on the sale and registration of motor vehicles.	Value Air conditioning Fuel efficiency Malus Bonus CO2 emissions	Rebate of GST/HST to purchasers of specially equipped motor vehicles for persons with disabilities. The rebate is only available on the GST/HST paid on the portion of the purchase price that is attributable to the special features. The Excise Tax on Fuel Inefficient Vehicles does not apply to pickup trucks, vans equipped to carry 10 or more passengers, ambulances and hearses. Rebate of Excise Tax on Fuel Inefficient Vehicles to end-users of Specially Equipped Vans equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair. Incentives for Zero-Emission Vehicles (iZEV) Program - point-of-sale incentive of up to CAD 5 000 for Canadians and Canadian businesses (subject to funding availability) who buy or lease an eligible zero-emission vehicle. Eligibility requirements for the Program are based on the manufacturer’s suggested retail price (MSRP) of the vehicle and the vehicle’s all electric range. Several provinces and territories may also offer bonuses for zero-emission vehicles ranging from CAD 2 500 – CAD 7 000. Eligibility requirements vary by province/territory although several provinces/territories (such as Nova Scotia, New Brunswick, and Prince Edward Island) mirror the requirements of the iZEV Program. Provincial/territorial incentives can be combined with the iZEV incentive.
Chile	VAT: 19% Registration fees payable to Civil Registry: first registration fee, new plate fee, fee for transfer and registration of vehicles. Tax on transfer of used motor vehicles (levied by municipalities): 1.5% of the value of the vehicle. Excise tax on emissions from new motor vehicles: an excise based on urban performance, sale price and nitrogen oxide emission of the vehicle.	Value Fixed fee Environmental characteristics Electric propulsion	VAT: used cars are exempt with some exceptions. Excise tax on emissions exemptions: for passenger transport vehicles (more than 9 seats); taxis; some pick-up trucks, tractors, electric vehicles, police and ambulance cars.
Colombia	VAT: 19%. Vehicle registration fee: approximately COP 485 000 for cars and COP 294 500 for motorcycles variyng between cities. National Consumption Tax: 16% tax rate applies to family-type motor vehicles, camper vehicles and pick-ups whose Free On Board (FOB) value (or the equivalent) is greater than or equal to USD 30 000. An 8% tax rate applies to family-type motor vehicles, camper vehicles and pick-ups and whose FOB value (or the equivalent) is less than USD 30.000 and to motorcycles with cylinder capacity greater than 200cc.	Value Type of vehicle
Costa Rica	VAT: 13% Selective consumption tax: calculated on the fiscal value. Vehicle registration fee: calculated on fiscal value. Registry fees and stamps: calculated on fiscal value. Tax on transfer of used motor vehicles: 2.5% calculated on fiscal value.	Value Electric propulsion	Full battery electric vehicles (BEV) are exempt from the VAT and the Selective Consumption Tax when their value is less than CRC 17.4 million. Beyond that value, the tax rates increase progressively with the value of the vehicles.
Czechia	VAT: 21% Registration fee: CZK 300 or 500 for motorcycles (depending on cylinder capacity); CZK 800 for other motor vehicles. The fee includes the registration plate. Environmental surcharge: No surcharge – Euro 3 and higher standard fulfilled; CZK 3 000 for Euro 2 fulfilled; CZK 5 000 – Euro 1 fulfilled. Permit fee on non-standard motor vehicles	Value Cylinder capacity Electric/Hydrogen fuel CO2 emissions Malus	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 are exempt from the registration fee
Denmark	VAT: 25% Vehicle registration tax: payable on first registration of the vehicle. Graduated tax rates according to the value of the vehicle (price excluding the tax but including VAT): below DKK 70 200 – 25% of the value, between DKK 70 200 and 218 100 – 85% of the value, and above DKK 218 100 – 150 % of the remainder. Fee based on CO2 emissions. For CO2 emissions below 113 CO2 g/km the rate is DKK 270 per g/km, for CO2 emissions between 113 to 155 CO2 g/km the rate is DKK 539 per g/km and for CO2 emissions above 155 CO2 g/km the rate is DKK 1024 per g/km. The total tax amount is reduced by DKK 23 400.	Value CO2 emissions Battery capacity	Low- and zero-emission vehicles receive a tax advantage under the registration tax compared to conventional vehicles. In 2024 the registration tax for zero-emission vehicles is discounted to 40% of the full tax, and then reduced by a flat fee of up to 162 500 DKK. For low-emission vehicles, the registration tax is discounted to 60% of the full tax, reduced by a flat fee of up to 46 250 DKK. Further a deduction is given in the value before tax based on the battery capacity. In 2024 the deduction is DKK 500 per kWh (for a maximum of 45 kWh).
Estonia	VAT: 22% Vehicle registration fee (State fee): vehicle: EUR 130; temporarily imported vehicle: EUR 335	Value Type of vehicle
Finland	VAT: 24% Vehicle Registration Tax is based on CO2 emissions. Rates vary from 0% of the general consumer price of the vehicle for cars emitting 0g/km to 48.9% for cars emitting 360g/km or more. For delivery vans there is a deduction based on maximum laden weight of the vehicle for vans weighing over 2 500 kg. For motor cycles rates vary from 9.8% to 24.4% according to the cylinder capacity; the tax base is generally the retail value.	Value CO2 emissions Utilisation Cylinder capacity Type	Exemption for people with disabilities, taxis, motor homes, cars used for veterinary purposes, rescue vehicles and funeral cars.
France	VAT: 20% Fixed tax: due for each issue of a registration certificate for a land vehicle. It applies to any land vehicle subject to the registration obligation, whether or not it has an engine. Its amount is equal to EUR 11. Regional tax on motor vehicles: based on horsepower. Rates vary between EUR 33 and EUR 60 per unit of horsepower according to the region. The rate is reduced by half for some vehicles depending on their nature (trucks weighing more than 3.5 tonnes, motorcycles) or age (more than 10 years old). Tax on transport vehicles of categories N, M2 and M3: due for any issue of a registration certificate following a change of ownership of a vehicle intended for the transport of goods or passengers if it has at least nine seats. The rate of the tax is determined according to a scale based on the technically permissible laden mass of the vehicle. Tax on carbon dioxide emissions (« CO2 malus »): CO2 emission component of the tax varies from EUR 0 for vehicles emitting less than 118g CO2/km to EUR 40 000 for vehicles emitting more than 193g CO2/ km. (CO2 emissions are determined according to the Worldwide harmonised light-duty vehicles test procedure 6 WLTP). The horsepower component of the tax (vehicles that have not been subject to an EU-type approval) varies from EUR 1 000 (5HP) to EUR 60 000 (25HP). The tax is not applicable to vehicles belonging to disabled people. Mass tax in running order (malus by weight) varies on a progressive scale from EUR 10/kg exceeding the threshold of 1 600 kg to EUR 30/kg exceeding the threshold of 2 100 kg.	Value Engine power Weight Utilisation Age of vehicle CO2 emissions Type of fuel Electric propulsion Bonus Malus	Vehicles whose energy source is exclusively electricity, hydrogen or a combination of the two are exempt from the Regional tax on motor vehicles, the Tax on carbon dioxide emissions and the Mass tax in running order). For vehicles other than those mentioned above whose energy source includes electricity, hydrogen, natural gas, liquefied petroleum gas or super ethanol E85, the rate of the Regional tax on motor vehicles is, by regional decision, reduced by half or raised to EUR 0. When the energy source has been modified since the last certificate was issued and subject to the regional tax to include super ethanol E85, the benefit of the zero rate is capped at a reduction of EUR 750 in the amount of the tax. Wheelchair-accessible vehicles and, within the limit of one vehicle per beneficiary, vehicles whose owner or child is a holder of the "mobility inclusion" card bearing the mention "disability" are exempt from the Tax on carbon dioxide emissions and the Mass tax in running order. Within the limit of a single vehicle with at least five seats, households responsible for at least three children benefit from a reduction in the CO2 emission rate of 20 grams per kilometre or one administrative horsepower (HP) per child within the limit of once every year (Tax on carbon dioxide emissions). Legal entities acquiring a vehicle with at least eight seats benefit from a reduction in their CO2 emissions equal to 80 grams per kilometre (or 4 HP) for the Tax on carbon dioxide emissions. Vehicles specially equipped to run on E85 super ethanol, known as "flex fuel", whose CO2 emissions do not exceed 250 grams per kilometre (or whose administrative power does not exceed 12 HP), benefit from a reduction of 40% of their emission rate (or 2 HP) for the Tax on carbon dioxide emissions. For vehicles that have already been registered (imported used vehicles and vehicles converted into passenger vehicles), the amount of the Tax on carbon dioxide emissions and of the Mass tax in running order are reduced by 10% for each twelve-month period since the vehicle was first registered. The issuance of certificates for collector vehicles is exempt from the Tax on transport vehicles. Reduction of the Mass tax in running order applies to vehicles purchased by households with at least three children (200 kg per child) and to legal entities acquiring a vehicle with at least eight seats (400 kg). A ceiling ensures that the cumulative CO2 and weight penalty does not exceed the maximum amount of the CO2 penalty (EUR 50 000 in 2023 and EUR 60 000 in 2024). From 2025 onwards, externally rechargeable electric hybrid vehicles whose range in electric mode exceeds 50 kilometres benefit from a reduction in their weight equal to 200 kg within the limit of 15% of their total mass for the application of the Mass tax in running order. Ecological bonus provides a help for the purchase or the rent of a new or second-hand electric or hydrogen vehicle or a new rechargeable hybrid vehicle (see Table 4.A.2.)
Germany	VAT: 19%	Value
Greece2	VAT: 24% Registration tax: rate varies as follows: - from 3.8% up to 60% of the taxable value, according to a progressive scale on the taxable value (retail price before taxes) depending on CO2 emissions and Euro emissions standard of cars complying with the specifications of Euro 6 emission limits, by design, with the last classification date, for the first classification, from 01.9.2018 onwards (Regulation 715/2007 (EC) and 692/2008 (EU) or 2017/1151 (EU) or subsequent), or Euro VI specifications with the last date of classification, for the first classification, from 01.09.2019 onwards (Regulation 595/2009). - from 5.7% up to 90% of the taxable value, according to a progressive scale on the taxable value (retail price before taxes) depending on CO2 emissions and Euro emissions standard of the car complying with the specifications of Euro 6 emission limits, by design, with the last classification date, for the first classification, up to 31.8.2018, as defined in Regulations 715/2007 (EC) and 692/2008 (EU) or 2017/1151 (EU) or subsequent; or the specifications of Regulation 595/2009 (EC) Euro VI, with the last date of classification, for the first classification up to 31.8.2019. - from 7.60% to 120% of the taxable value, according to a progressive scale on the taxable value (retail price before taxes) depending on CO2 emissions and Euro emissions standard of the car complying with the emission limit specifications Euro 6 and European emission standards Euro 5b, by design, with the last classification date, for the first classification, up to and including 31.8.2015, as defined in Regulations 715/2007 (EC), 692/2008 (EU) or subsequent; or the specifications of series B2 or C (EEV) of Directive 1999/96 EC, 2005/55 EC Euro V, or subsequent. - from 11.40% to 180% of the taxable value, according to a progressive scale on the taxable value (retail price before taxes) depending on CO2 emissions and Euro emissions standard of the car complying with the specifications of European emission standards Euro 6a and Euro 5a; with the last classification date, for the first classification, up to 31.12.2012, as defined in Regulations 715/2007 (EC), 692/2008 (EU) or subsequent, or the specifications of Directive 98/69/EC line (phase) B Euro 4, or subsequent, or the specifications of series B1 of Directives 1999/96 EC, 2005/55 EC Euro IV or subsequent. -. from 5% to 20% of the taxable value, for lorries-trucks etc. (less or more than 3.5 tonnes), according to their emissions standard. - from 0% to 25% of the taxable value for motorcycles according to their cylinder capacity. Registration tax for buses depends on the number of seats etc.	Value Cars: value (retail price before taxes), CO2 emissions, “Euro” emissions standards, Electric propulsion Lorries: weight, emissions standards, body type. Motorcycles: cylinder capacity	Exemptions from registration tax: electric vehicles, vehicles used by public authorities, vehicles used by disabled persons, vehicles used by parents having at least three (3) children, ambulances used by public hospitals, vehicles used by people who have moved their normal residence to Greece, vehicles donated to the Greek Police, Fire Brigade or Greek Coast Guards. Hybrid cars are relieved from the registration tax by 50% or 75% depending on CO2 emissions.
Hungary	VAT: 27% Registration Tax: from HUF 45 000 to HUF 4 800 000 on new passenger cars according to engine type (diesel or petrol) and engine cylinder capacity, and from HUF 15 000 to HUF 230 000 on motorcycles according to engine cylinder capacity. For cars with lower environmental category of engine higher rates are levied (400, 600, 800 or 1200% higher), but the rate is reduced according to a scale based on age (up to 90%). A reduced rate applies to hybrid cars and HUF 0 is levied on electric cars. Transfer of motor vehicles: the rate of duty is determined based on the basis of engine capacity (in kW). The tax rate is from HUF 300/kW to HUF 850/kW depending on the age of the vehicle (the older the vehicle, the less is due).	Value Engine type Cylinder capacity Engine power Polluting emissions Type of fuel Age of vehicle Electric propulsion	Reduced registration tax for cars with hybrid engines or with gas-powered engines (HUF 76 000) and for cars with electric engines as well as for hybrid and electric motorcycles (HUF 0).
Iceland	VAT: 24% Vehicle Registration Fee of ISK 5 187 on initial registration and ISK 2 183 for subsequent changes. Motor vehicle excise duty: based on CO2 emissions ranging from 0-65%. Excise duties on motor vehicles other than private automobiles: a percentage of value. Small goods vehicles, small special purpose vehicles, vehicles over 40 years old, motor vehicle bodies13%. Small coaches, motorbikes, other vehicles 30%	Value CO2 emissions Electric propulsion	From 1 January 2024 a grant is provided for the purchase of a zero emission vehicle such as an electric or hydrogen passenger car (with maximum of 9 passengers) or an electric or hydrogen van (with a maximum of 3.5 tonnes) where the purchase price is less than ISK 10 million. For new cars, the grant is ISK 900.000 for a passenger car and ISK 500.000 for a van. For used cars, the grant is ISK 400.000 up to ISK 700.000, depending on the type of the car (passenger car and a van) and the age of the car (0-4 years). Car rentals enjoy a temporary VAT exemption (until 31 December 2025). The exemption is adjusted in case the electric, hydrogen or plug-in hybrid vehicles that benefitted from the VAT exemption when imported or at first domestic sale are re-sold. Exempt from excise duty: large goods vehicles, large special purpose vehicles, tractors, agriculture trailers, large snow-mobiles, amphibious vehicles, competition cars and motorbikes, vehicles for transport of disabled persons, rescue vehicles and large coaches.
Ireland	VAT: 23% Registration Tax: based on CO2 emissions and NOx emissions for passenger vehicles with not more than 9 seating positions and certain commercial vehicles with 4 or more seats. For the CO2 element of the charge, rates vary from 7% of the value of such a vehicle with CO2 emissions of up to and including 50 g/km to 41% for such a vehicle with CO2 emissions above 190 g/km. The NOx element of the charge is EUR 5 per mg/km for the first 40 mg/km, EUR 15 per mg/km for the next 40 mg/km, and EUR 25 per mg/km thereafter. The NOx element of the charge is capped at EUR 4 850 for diesel vehicles and EUR 600 for other vehicles. The registration tax for commercial vehicles designed and constructed for the carriage of goods, that do not exceed 3.5 tonnes, and motor caravans is 13.30% of the value of the vehicle. Motorcycles are charged EUR 2 per cc up to and including 350cc and EUR 1 per cc above. Large vehicles designed and constructed for the carriage of goods, buses, tractors and “vintage” (over 30 years old) vehicles are charged EUR 200. Special purpose vehicles such as ambulances and fire engines are subject to a nil rate.	Value CO2 emissions NOx emissions Electric propulsion Type Age of vehicle Max laden mass Body type	Series production electric passenger and commercial vehicles are eligible for relief from vehicle registration tax (VRT) up to a maximum amount of EUR 5000. Vehicles with an Open Market Selling Price (OMSP) of up to EUR 40,000 will be granted relief of up to EUR 5,000. Vehicles with an OMSP of greater than EUR 40,000 but less than EUR 50,000 will receive a reduced level of relief. Series production electric motorcycles are exempt from VRT. Remission/repayment of VRT for vehicles adapted for persons with specific severe and permanent physical disabilities is subject to a maximum of EUR 10 000, EUR 16 000, EUR 22 000 or EUR 48 000 for a disabled driver and EUR 16 000 and EUR 22 000 or EUR 32 000 for a disabled passenger. The amount depends on the category of adaptations carried out on the vehicle. Relief for qualifying organisations is subject to a maximum of EUR 22 000 when the vehicle is adapted to transport less than five persons with disabilities. There’s no limit to the relief from VRT for qualifying organisations where the adapted vehicle is for the transport of five or more disabled persons. Exemptions: Transfer of residence, transfer of business undertakings, inheritance, donations by official bodies, public authorities or groups, international air services, diplomatic agents, transfers to the State of EU Officials, and vehicles acquired for the official use of an EU Institution.
Israel	VAT:17% Purchase Tax: private and commercial vehicles with a weight not exceeding 3500 kg are taxed at 83% of the value. An additional luxury tax is levied on the value of the vehicle that exceeds 300 000 NIS, according to the following formula: 20%*(vehicle price - 300 000NIS)/vehicle price. Rates for taxis < 3 500 kg are taxed at 8%. Taxi >3 500 kg is taxed at 0%. Commercial vehicles between 3500 kg and 4500 kg are taxed at 72% of their value but not eligible for a rebate. A 0% rate applies to commercial vehicles > 4500 kg.	Value Weight Polluting emissions Electric propulsion Safety system Engine power	Purchase tax rebates according to the polluting emissions: vehicles ≤ 3500 kg benefit from a rebate on the Purchase Tax according to their degree of pollution. There are 15 levels of polluting emissions according to a "Green Score" (weighting the emission of five major pollutants). Rebate is up to the amount of NIS 18 762. Electricity powered vehicles are taxed at a rate of 35% of their value (rebate up to NIS 50 000). Since June 2018, luxury tax is also levied on hybrid vehicles and electric vehicles. Vehicles ≤ 3500 kg receive a Purchase Tax rebate (up to 2400 NIS) according to their safety level. There are 9 safety levels (0-8) depending on the number of safety systems.
Italy	VAT: 22% Vehicle Registration Tax (Imposta Provinciale di Trascrizione IPT): based on the engine power of the vehicle, i.e. EUR 150 on the first 53kw + EUR 3.51 per kw above 53kw. A surcharge is levied by the provinces (from 0% to 30%) Ecotax: Anyone who buys, incl. through financial leasing, and registers a new M1 vehicle (i.e. vehicles designed and constructed for the carriage of passengers and comprising no more than eight seats in addition to the driver’s seat) in Italy, as well as registers in Italy an M1 vehicle already registered in another State, is required to pay a tax based on the number of grams of CO2 emitted per km exceeding the threshold of 160 CO2 g/km as follows: 161-175 CO2 g/km: EUR 1100; 176-200 CO2 g/km: EUR 1600; 201-250 CO2 g/km: EUR 2000; above 250 CO2 g/km: EUR 2500.	Engine power CO2 emissions Bonus Malus	A reduction of the IPT is granted in some provinces for vehicles for disabled people. A bonus of EUR 4 000 is granted for vehicles emitting less than 20 g CO2 /km and 1500 for those emitting between 21 and 70 g CO2/km. Exemption from the Ecotax: special purpose vehicles such as vehicles for disabled people. Vehicles emitting less than 20g CO2/km (typically BEVs) receive a EUR 4 000 subsidy and vehicles emitting between 20–60g CO2/km (typically PHEVs) receive a EUR 1 500 subsidy.
Japan	VAT: 10% Environmental performance excise (automobile tax - light motor vehicle tax): 0-3% of acquisition price (0-2% for commercial and light vehicles) according to environmental criteria (e.g. vehicle type, fuel efficiency, etc.).	Value Environmental criteria Fuel efficiency	Special measures of reduced environmental performance excise (automobile tax): vehicles with small burden for the environment, barrier-free buses and taxis, trucks with collision damage alleviation brake control device, etc., buses for ordinary passengers used on the bus routes provided for in prefectural ordinance.
Korea	VAT: 10% (calculated on the vehicle value inclusive of the Individual Consumption Tax and the Education tax). Individual Consumption Tax (ICT): 5% of the manufacturer’s price on Taxable objects: passenger cars (excluding those of up to 1 000cc), camping cars, two-wheeled vehicles, electric passenger cars (Pick-up vehicles are not subject to ICT and Education Tax). A temporary reduced rate of 3.5% applied from 1 July 2020 to 31 December 2022 (not exceeding 1 000 000 KRW). Education Tax: 30% on the amount of the Individual Consumption Tax. Acquisition Tax: 2-7% of the retail price excluding VAT.	Value Cylinder capacity Electric propulsion Bonus	Exemptions from ICT and Education Tax: cars used by disabled persons; ambulances used by hospitals; cars used for transportation business (public passenger transportation only); cars used for car-rental business. Exemptions from Acquisition Tax: cars used by disabled persons, cars used by parents having at least 3 children, small cars for non-commercial activities. Rebate for hybrid and electricity powered vehicles: relief of the ICT not exceeding KRW 1 000 000 (hybrid) and KRW 3 000 000 (electric) and KRW 4 000 000 (hydrogen electric). A bonus is provided upon first registration of electric vehicles (BEVs, HEVs, PHEVs and FCEVs).
Latvia	VAT: 21% Vehicle registration (state fee): for registration, registration certificate and registration number plates - EUR 43.93 Natural resource tax: EUR 110 per vehicle.	Value Electric propulsion Bonus	Electric vehicles are exempt from the vehicle registration fee. A bonus is provided upon first registration of electric vehicles.
Lithuania	VAT: 21 % Registration fee: flat rate fees on the first registration (applies to passenger cars and heavy vehicles): (1) of a new vehicle: EUR 14.48; (2) of other (used) vehicle: EUR 12.45. An additional registration fee applies from 1 July 2020 to passenger cars and commercial vehicles that exceed a 130 g/km CO2 emissions threshold. Fee rates range from EUR 18.44 to EUR 737.64 depending on CO2 emissions and fuel type (diesel/petrol/gas). Fee rates are indexed annually. It is paid on the first registration of a vehicle in the Republic of Lithuania, or after the change of ownership (exemptions apply).	Vehicle type Age of vehicle (new/used) Type of fuel CO2 Emissions	Rebates of the flat rate vehicle Registration fee are granted for disabled people (only the owners of passenger cars are entitled to the rebate - it is set once every 3 years): - 90% rebate for a car owner with a disability percentage of 75%-100%, - 75% rebate for a car owner with a disability percentage of 60%-70%, - 50% rebate for a car owner with a disability percentage of 45%-55%, Exemptions to the registration fee applies in the following cases: - Temporary (up to one month) registration of a vehicle that is subject to be exported outside the territory Republic of Lithuania; - Historic vehicles with historic registration plates, - Registration of a vehicle where ownership does not change (for example, after paying out the lease of the vehicle, changing owner's surname, ordering a duplicate of the registration certificate if the original certificate was lost, destroyed, etc.), - Registration of a vehicle with equipment for disabled drivers (vehicle documents must contain special designation code: SH or SV), - Registration of an inherited vehicle.
Luxembourg	VAT: 17% Registration Tax (Timbre de chancellerie): EUR 50	Value Electric propulsion Bonus	Bonus system: purchasers of new hydrogen powered vehicles and full electricity powered vehicles are entitled to a bonus of EUR 8 000 (the bonus is reduced to EUR 3 000 for electricity powered vehicles whose consumption exceeds 18kwh/100km).
Mexico	VAT: 16% New Vehicles Tax: from 2% to 17% plus a fixed fee according to vehicle value. A discount applies for vehicles with a price higher than MXN 977 228.54 in the form of a reduction of the tax at 7% of the difference between the sales price and the price threshold mentioned above. The tax tariff thresholds, deductions and exemptions are updated every year to reflect the evolution of the consumption price index.	Value Electric propulsion	Exemption of 100% of the New Vehicles Tax for vehicles with a value of up to MXN 328 965.21. Exemption of 50% of the New Vehicles Tax for vehicles with a value from MXN 328 965.22 to MXN 416 689.29. Exemption of 100% of the New Vehicles Tax on the sale or import of hybrid electricity powered vehicles or vehicles powered by rechargeable electric batteries. Trucks with a load capacity of up to 4 250 kilograms, including the panel types with a maximum capacity of three passengers and trailers and semi-trailers types are subject to the rate of 5%.
Netherlands	VAT: 21% Registration Tax: for passenger cars and delivery vans, fully based on CO2 emissions and the type of motor fuel used. The registration tax is progressive with a minimum of EUR 440 and an additional sum that varies between EUR 2 and EUR 549 per g/km. Passenger cars using diesel are charged with an additional EUR 106.07 per g/km exceeding the level of 71 g/km. Registration tax for motorcycles and delivery vans is based on the value of the vehicle.	Value CO2 Emissions Type of fuel Electric propulsion	Zero-emission vehicles (e.g. electricity powered vehicles) are exempt from Registration Tax. Other examples of exemption include delivery vans owned by entrepreneurs and used for business purposes for at least 10%. Tax refunds are provided for vehicles such as: vehicles used by fire brigades, vehicles used by the police, funerary vehicles, vehicles used for the transport of prisoners, vans used by disabled persons, (animal) ambulances and vehicles that are used for secure transport.
New Zealand	GST: 15% Registration Fee on initial registration: the registration fee varies depending on the type of vehicle being registered and the size of the engine. Road user charges (RUC): applies to vehicles with a GVM of 3.5 tonnes or more, vehicles powered by diesel, electricity (from 1 April 2024) and any other fuel not taxed at source. Road user charges are distance based (in 1000-kilometre increments) and charges vary based on the weight and configuration of the vehicle.	Value Vehicle type Cylinder capacity Weight	Electric vehicles were exempt from Road user charges. From 1 April 2024, Road user charges will apply to light electric vehicles (under 3.5 tonnes).
Norway	VAT: 25% Registration Tax: rates vary according to weight, CO2-emissions and NOx- emissions. When CO2-emissions information is not stated, the tax is calculated based on cylinder capacity instead of CO2-emissions.	Value Weight CO2 emissions NOx emissions Electric propulsion	Electricity powered vehicles are subject to a 0% VAT rate for the price below NOK 500 000 and are subject to a reduced Registration Tax rate.
Poland	VAT: 23% Excise Duty is levied on passenger cars prior to their first registration at the time of their sale, intra-community acquisition or import. The following are also subject to excise: 1) making design changes to a motor vehicle other than passenger car, registered in the territory of Poland, modifying the type of the vehicle so that it becomes a passenger car; 2) acquisition or possession of a passenger car that has not been previously registered in the territory of Poland. The tax base is the sales price or the customs value (for imports). Rates for passenger cars depend on engine capacity, i.e. 18.6% for cars with engine cubic capacity over 2000 cm³ and 3.1% for the others. For hybrid fuelled passenger cars combining conventional combustion engine with an electric propulsion (hybrid electric vehicle - HEV) the tax rate is reduced by half of the standard rate. For hybrid passenger cars with combustion engine capacity of 2 000 cm3 or less, the tax is paid at a rate of 1.55% of the tax base and for passenger cars with engine capacity exceeding 2 000 cm3 but not exceeding 3 500 cm3 excise tax is paid at a rate of 9,3% of the tax base. A reduced tax rate of 9.3% of the tax base for hybrid fuelled vehicles (plug-in) with combustion engine capacity higher than 2 000 cm3 but not exceeding 3 500 cm3 also applies. Tax on civil law transactions: tax on the sales contract of a vehicle. The buyer is required to pay the tax. The tax rate is 2% of the market value of the vehicle.	Value Cylinder capacity Electric/hydrogen propulsion Market value	Are exempt from the Excise Duty: certain types of ambulance vehicles; electric, hybrid (plug-in) with engine capacity of 2 000 cubic centimetres or less and hydrogen fuelled vehicles (the exemption for hybrid vehicles is temporary applies until 31 December 2022); passenger cars brought into in Poland permanently or returning from a temporary stay in the EU or EFTA (under certain conditions). Vehicle sales contracts are not subject to the tax to the extent that they are subject to VAT or if at least one of the parties is exempt from VAT for this transaction.
Portugal	VAT: 23% Motor vehicle tax release for consumption (ISV) is based on cylinder capacity and CO2 emissions (light passengers’ vehicles) or only on cylinder capacity (other light vehicles, and cycles with two, three or four wheels). Other rate brackets are applicable for light commercial vehicles and some segments of combined (passenger and freight) vehicles.	Value Engine capacity CO2 Emissions Particles emissions Electric propulsion	Exemption: vehicles owned by the State (central, regional or local administration), armed forces, fire brigades, foreign States, diplomatic and consular missions, international organisations and European agencies. Transfers of permanent residence; vehicles for persons with disabilities; vehicles acquired for transport of families with three or more children benefit from a tax reduction of 50%, passenger vehicles for rental benefit from a tax reduction of 40%, taxi services benefit from a tax reduction of 70% of the tax. Plug-in hybrid vehicles with an electric range of at least 50km and CO2 emissions that not exceed 50 gr/km benefit from a tax reduction of 25%. Vehicles exclusively consuming natural gas benefit from a tax reduction of 40%. Electric vehicles or vehicles using renewable energies, and ambulances and heavy vehicles (above 3.500 kg) are not subject to the Motor vehicle tax.
Slovak Republic	VAT: 20% Administrative fees: registration of new, imported and used cars in the vehicle register is subject to a registration fee payable by the holder of the vehicle. The fee is calculated according to the following formula: RP = Pkw x EKW where RP is fee rate, Pkw refers to an amount of tax depending on engine power in Kilowatt and EKW is an ecologic coefficient of the vehicle. The RP rate cannot be lower than EUR 33. Pkw values are determined across 10 brackets ranging from EUR 33 (engine capacity up to 80kw) to EUR 1000 (engine capacity above 210kw). EKV coefficient are determined across 7 brackets ranging from 1 (EURO 1 Emission standard) to 0.40 (EURO 6d/VID and newer emission standards). The registration of electric cars is subject to a fee of EUR 33 payable by the holder of the vehicle. Plate fee: for the issuance of a license plate number, a fee is due of EUR 16.50 per plate i.e. EUR 33 for 1 vehicle. Since 1 April 2024, the license plate fee has been set at EUR 25, i. e. EUR 50 for both plates.	Value Engine power Residual value Type of fuel Electric propulsion	Disabled persons: 50% rebate (max. 100 EUR) of the administrative fee. Hybrids, CNG, LNG vehicles: 50% rebate of the administrative fee for the vehicle holder. Family vans: 50% rebate of the administrative fee for the holder of a vehicle with maximum engine power of 110 kW provided that holder has at least 4 children in parenting. Other exemptions: 100% rebate for state authorities, higher territorial units, budget organisation, diplomats, Court of Justice, prosecution office, police and Slovak Red Cross.
Slovenia	VAT: 22% Motor Vehicle Tax is levied on passenger motor vehicles that are put into circulation for the first time or are registered in Slovenia for the first time. The Motor Vehicle Tax is also levied on motor vehicles that are subsequently converted into passenger motor vehicles. This tax is based on the Motor Vehicle Tax return to be submitted in electronic form (via eDavki). The person liable to declare and pay the tax (hereinafter referred to as the taxable person) is the motor vehicle manufacturer and/or the person that acquires the vehicle in another EU Member State and/or the importer of the motor vehicle and/or the person whose motor vehicle has been converted and the motor vehicle tax for that vehicle has not been paid. The tax base is determined according to the type of motor vehicle. The criteria for determining the tax base are: the type of fuel used for propulsion, CO2 emissions from combined driving expressed in g/km, the engine power expressed in kilowatts (kW), and the environmental category according to the EURO emission standard. The data for determining the tax base are specified in the certificate of conformity, in the register of registered vehicles of the ministry responsible for transport, in the records of the financial administration or in another authentic document containing data for determining the tax base. CO2 emissions according to the WLTP are taken into account for determining the CO2 emissions component of the tax. For motor vehicles for which CO2 emissions according to WLTP is not available, a conversion method is applied. After the Motor Vehicle Tax return process is completed, the taxable person may register the motor vehicle with the registration authority.	Value CO2 emissions EURO emissions standards Engine power	Are exempt from the Motor Vehicle Tax: special vehicles for transport of deceased persons; fire-fighting vehicles and civil protection vehicles; vehicles for transport of persons with disabilities; vehicles for families with three or more children; exported vehicles and vehicles supplied before first registration; intervention ambulances; historic vehicles; sports vehicles used only on racetracks, vehicles of diplomatic and consular representations accredited to Slovenia and international organizations. The tax on purely electric motor vehicles and other motor vehicles without CO2 emission is 0 EUR. Tax exemptions listed in this box also apply to the financial leasing of these vehicles.
Spain	VAT: 21% Vehicle Registration Tax (IEDMT) is based on CO2 emissions and set as a percentage of the value of the vehicle. Rates are as follows: 0% (emissions up to 120 g CO2/km); 4,75% (emissions between 120 g CO2/km and 160 g CO2/km); 9,75% (emissions between 160 g CO2/km and 200 g/km) and 14,75% for vehicles emitting more than 200 g CO2/km and for other vehicles (pleasure craft and pleasure vessels or pleasure boats). Airplanes, light aircraft and other aircraft: 12%.	Value CO2 emissions	The VAT tax rate for vehicles for persons with reduced mobility is 4%. IEDMT. Tax exemptions apply to taxis; driving school vehicles; rental service vehicles; vehicles acquired and used by people with disabilities; vehicles with special diplomatic registration; transfer of vehicles in the case of change of residence of the vehicle’s owner. In the Canary Islands, tax rates are 1% lower than in Continental Spain and are set to 0% in Ceuta and Melilla.
Sweden	VAT: 25%	Value	-
Switzerland	VAT: 8.1% Automobile tax: 4% of the vehicle's value is levied on light commercial vehicles with a unit weight of no more than 1600 kg, as well as on passenger vehicles. The tax is payable on the importation of automobiles into the domestic territory and the delivery and own use of automobiles produced domestically. No registration tax (but small fees for number plates and registration papers).	Value
Türkiye	VAT: 20%. Special Consumption Tax (SCT) is collected once on first acquisition of a vehicle. Criteria include: engine capacity, SCT tax base, motor power for electric and hybrid vehicles in kW.	Value Cylinder capacity Electric propulsion	Exemption: vehicles for diplomatic use, vehicles for people with disabilities, acquisition of aircraft and helicopters by Turkish Airlines, the first acquisition of vehicles by the headquarters of the Presidency, the vehicles acquired exclusively for use in petroleum exploration activities, vehicle purchases by relatives of martyrs. Rebate: discounted SCT rate applied for only electric vehicles in the 87.03 and 87.11 tariff positions and motor vehicles that have electric motors along with fuel engines (hybrids) in the 87.03 tariff position.
United Kingdom	VAT: 20% Vehicle First Registration Fee: a flat rate fee of GBP 55.0 is payable on the first registration and licensing of a motor vehicle in the United Kingdom	Flat rate	People with disabilities are exempt from the Vehicle First Registration Fee. Other exemptions: vehicles previously registered in Northern Ireland; vehicles registered for off-road use; Crown Exempt Vehicles; historic vehicles previously registered with the old Local Authorities (late conversions); imported vehicles previously registered under the Personal Export Scheme and New Means of Transport Scheme; Visiting Forces Vehicles.
United States	A ‘gas guzzler’ tax is imposed on the sale, use, or lease by the manufacturer or importer of an automobile of a model type that does not meet certain standards for fuel economy. Automobiles imported for business or personal use are also subject to the tax. “Automobile” means any four-wheeled vehicle (including limousines) rated at 6 000 pounds or less unloaded gross weight that is propelled by an engine powered by gasoline or diesel fuel and is intended for use mainly on public streets, roads, and highways. The tax applies to motor vehicles that achieve less than 22.5 miles per gallon. The tax is USD 1 000 for automobiles that got between 21.5 and 22.5 miles per gallon and increased in stages, reaching USD 7 700 for vehicles that got less than 12.5 miles per gallon. A retail tax on heavy trucks, trailers, and tractors.12% of the sales price applies to the first retail sale of a truck chassis or body, a truck trailer and semitrailer chassis or body, and tractors that are primarily used for highway transportation in combination with a trailer or semitrailer. A taxable tire tax is imposed on tires sold by the manufacturer, producer, or importer at the rate of USD 9.45 cents (USD 4.725 cents in the case of a biasply tire or super single tire not designed for steering) for each 10 pounds of the maximum rated load capacity over 3 500 pounds.	Fuel efficiency Value Weight Tires	The gas guzzler tax is widely applied and must be paid by vehicles sold to the federal government, state and local governments, and non-profit educational organizations. Vehicles used for police, other law enforcement purposes, or firefighting purposes or as ambulances are exempt. Limousines weighing more than 6 000 pounds or designed to carry more than 10 people are exempt. Taxable tire tax: tires for use on local and school buses or for the exclusive use of the Department of Defense or the Coast Guard are exempt.

Notes:

This table does not include specific VAT regimes applicable to businesses. It does not include customs duties; specific regimes for second-hand cars (e.g. margin scheme), export/import and transit schemes and insurance premium tax.

1. Some jurisdictions impose a “malus” that is added to the regular purchase/registration taxes and duties

2. Unless otherwise specified, vehicles used by embassies and other diplomatic missions and international organisations are generally exempted from purchase and registration taxes.

3. For the purposes of this table, “bonuses” are direct subsidies provided by jurisdictions to the purchasers of less or non-polluting vehicles.

Source: National delegates. Position as of 1 January 2024

Annex Table 4.A.2. Taxes on Sale and Registration of Selected New Vehicles (in USD)

Country	Category A	Category B	Category C	Category D
Australia (Canberra)
Selling price (before tax)	33 000	55 000	23 000	50 000
GST 10%	3 300	5 500	2 300	5 000
Registration fee	-	-	-	-
Stamp duty	-	-	-	-
Price (All Taxes Included)	36 300	60 500	25 300	55 000
Austria (Vienna)
Selling price (before tax)	33 000	55 000	23 000	50 000
Bonus (-)	(-) 3 550	(-) 3 550	(-) 1 480	-
VAT 20%	6 600	11 000	4 600	10 000
New Car Registration Tax	-	-	570	30 930
Vehicle Registration Fee	220	220	220	220
Price (All Taxes Included)	36 270	62 670	26 910	91 150
Belgium (Brussels)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 21%	6 930	11.550	4.830	10.500
Entry into service tax	65	65	2 608	5 218
Price (All Taxes Included)	39 930	66 615	27 830	60 500
Canada (Ottawa)
Selling price (before tax)	33 000	55 000	23 000	50 000
GST 5%	1 650	2 750	1 150	2 500
Provincial part of HST 8%	2 640	4 400	1840	4 000
Air conditioning tax (included in the GST/HST base)	80	80	80	80
Tax on Fuel Inefficient Vehicles (included in the GST/HST base)	0	0	0	0
Incentives for Zero-Emission Vehicles (iZEV) Program (The dealer must apply taxes and fees to the purchase or lease before applying the incentive.)*	- 3 987	0	0	0 (not applicable)
Price (All Taxes Included)	33 383	62 230	26 070	56 580
Chile (Santiago)*
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 19%	6 270	10 450	4 370	9 500
Excise tax on emissions from new motor vehicles	0	0	0	0
Price (All Taxes Included)	39 270	65 450	27 370	59 500
Colombia (Bogotà)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT (A, B, C 5%; D 19%)	6 270	10 450	4 370	9 500
Vehicle Registration Fee	114	114	114	114
National Consumption Tax	5280	8 880	1840	8 000
Price (All Taxes Included)	44 654	74 444	29 324	67 614
Costa Rica (San José)*
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 13%	330	550	2 990	6 500
Vehicle Registration Fee	2 732	12 804	6 734	9 640
Special Consumption Tax	0	0	6 900	15 000
Price (All Taxes Included)	36 062	68 354	39 624	81 140
Czechia (Prague)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 21%	6 930	11 550	4 830	10 500
Registration fee	0	0	36	36
Price (All Taxes Included)	39 930	66 550	27 866	60 536
Denmark (Copenhagen)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 25%	8 250	13 750	5 750	12 500
Deduction in value liable to registration duty for battery capacity	- 3 280	- 3 280	-	-
Value liable to registration tax	37 970	65 470	28 750	62 500
Value-based registration tax	30 150	71 400	18 298	66 945
CO2-based registration tax	-	-	4 605	29 502
General deduction	- 3 411	- 3 411	- 3 411	- 3 411
Registration tax before further deductions for zero-emissions vehicles	26 739	67 989	19 491	93 035
Low- and zero-emission vehicles tax rebate	- 26 739	- 64 919	-	-
Total registration tax	0	3 070	19 491	93 035
Price (All Taxes Included)	41 250	71 820	48 241	155 535
Estonia (Tallinn)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 22%	7260	12100	5060	11 000
Vehicle Registration Fee	132	132	132	132
Price (All Taxes Included)	40 392	67.232	28 192	61 132
Finland (Helsinki)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 24%	7 920	13 200	5 520	12 000
Car tax	0	0	2 664	39 750
Price (All Taxes Included)	40 920	68 200	31 184	101 750
France (Paris)*
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 20%	6 600	11 000	4 600	10 000
Bonus/Malus	- 4 000			60 000
Taxes on registration certificates	11	11	11	11
Price (All Taxes Included)	35 611	66 011	27 611	120 011
Germany (Berlin)*
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 19%	6 270	10 450	4 370	9 500
Price (All Taxes Included)	39 270	65 450	27 370	59 500
Greece (Athens)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 24%	7 920	13 200	5 520	12 000
Bonus	- 8 000	- 8 000	0	0
Registration tax	0	0	3 052.63	24 784.16
Price (All Taxes Included)	32 920	60 200	31 572.63	86 784.16
Hungary (Budapest)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 27%	8 910	14 850	6 210	13 500
Duty on transfer	0	0	284	707
Vehicle Registration tax	0	0	211	1 109
Price (All Taxes Included)	41 910	69 850	29 705	65 316
Iceland (Reykjavik)*
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 24%	8 316	13 860	5 984	19 690
Motor vehicle excise duty	1 650	2 750	1 932	32 040
Vehicle registration fee	41	41	41	41
Price (All Taxes Included)	36 578	65 222	30 957	101 771
Ireland (Dublin)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 23%	7 590	12 650	5 290	11 500
Vehicle Registration Tax	0	4 736	4 329	8 180
Price (All Taxes Included)	40 590	72 386	32 619	69 680
Israel (Tel Aviv)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 17%	5 610	9 350	3 910	8 500
Purchase Tax	20 816	30 076	19 090	41 500
Price (All Taxes Included)	59 426	103 426	46 000	100 000
Italy (Rome)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 22%	7 260	12 100	5 060	11 000
Registration Tax	490	1368	389	1 017
Ecotax	0	0	0	2 500
Bonus	- 4 000	- 4 000	0	0
Price (All Taxes Included)	36 750	64 468	28 449	64 517
Japan (Tokyo)
Selling price (before tax)	33 000	55 000	USD 23 000	50 000
VAT 10%	3 300	5 500	2 300	5 000
Motor Vehicle Tonnage Tax	0	0	374	468
Environmental Performance Excise	0	0	0	1500
Automobile tax	190	190	274	122
Price (All Taxes Included)	36 490	60 690	25 948	57 090
Korea (Seoul)*
Selling price (before tax)	33 000	55 000	23 000	50 000
Individual Consumption Tax (ICT)	0	0	0	-
Education Tax (30% ICT)	0	0	0	-
VAT 10% (on selling price + Individual Consumption Tax + Education Tax)	3 300	5 500	2 300	5 000
Acquisition Tax	1 086	2 626	1 260	3 500
Price (All Taxes Included)	37 386	63 126	26 560	58 500
Latvia (Riga)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 21%	6 930	11 550	USD 4 830	10 500
Bonus	- 5 325	- 5 325	- 2 663	0
Vehicle Registration Fee	0	0	52	52
Natural Resource Tax	110	110	110	110
Price (All Taxes Included)	40 040	66 660	27 940	60 610
Lithuania (Vilnius)*
Selling price (before tax)	33 000	55 000	23 000	50 000
Bonus (after registration)	-5 917	-5 917	-	-
VAT 21%	6 930	11 550	4 830	10 500
Registration Fee: - Flat registration fee - Registration fee based on CO2 emissions	15 -	15 -	15 -	15 367
Price (All Taxes Included)	34 028	60 648	27 845	60 882
Luxembourg (Luxembourg)*
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 17%	5 610	9 350	3910	8 500
Bonus	- 9 467	- 9 467	0	0
Registration Tax	59	59	59	59
Price (All Taxes Included)	29 202	54 942	26 969	58 559
Mexico (Mexico)*
Selling price (before tax)	33 000	55 000	23 000	50 000
New vehicles tax	0	0	0	2 500
VAT 16%	5 280	8 800	3 680	8 400
Price (All Taxes Included)	38 280	63 800	26 680	60 900
Netherlands (The Hague)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 21%	6 930	11 550	4 830	10 500
Registration Tax	0	0	16 697	87 770
Price (All Taxes Included)	39 930	66 550	44 527	148 270
New Zealand (Wellington)*
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 15%	4 950	8 250	3 450	7 500
Registration Fee	106	106	106	143
Clean car discount scheme
Price (All Taxes Included)	38 056	63 356	26 556	57 643
Norway (Oslo)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 25%	0	750	5 750	12 500
Registration Tax	1 660	1 800	22 500	98 750
Price (All Taxes Included)	34 660	57 550	51 250	161 250
Poland (Warsaw)*
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 23%	7 590	12 650	5 290	11 500
Excise Duty	0	0	356	9 300
Tax on civil law transactions	660	1 100	460	1 000
Price (All Taxes Included)	41 250	68 750	29 106	71 800
Portugal (Lisbon)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 23%	7 590	12 650	5 290	11 500
Motor Vehicle Tax (ISV)	0	0	3 718	16 743
Price (All Taxes Included)	40 590	67 650	32 008	78 243
Slovak Republic (Bratislava)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 19%	6 600	11 000	4 600	10 000
Registration fee	36	36	199	442
Price (All Taxes Included)	39 636	66 036	27 799	60 442
Slovenia (Ljubljana)
Selling price (before tax)	33 000	55 000	USD 23 000	USD 50 000
Bonus (Eko found) refund	- 6 842	– 4 737
Motor Vehicle Tax	0	0	43	5 061
VAT 22%	7 260	12 100	5 069	12 113
Price (All Taxes Included)	33 418	62 363	28 112	67 174
Spain (Madrid)
Selling price (before tax)	33 000	55 000	23 000	50 000
Bonus	-	-	-	-
VAT 21%	6 930	11 550	4830	10 500
Registration Tax CO2 emissions)	0	0	0	7 375
Price (All Taxes Included)	39 630	66 550	27 830	67 875
Sweden (Stockholm)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 25%	8 250	13 750	5 750	12 500
Price (All Taxes Included)	41 250	68 750	28 750	62 500
Switzerland (Bern)
Selling price (before tax)	33 000	55 000	23 000	50 000
Automobile Tax 4%	1 320	2 200	920	2 000
VAT 8.1%	2 780	4 633	1 938	4 212
Fee for license plates and registration papers	115	115	115	115
Price (All Taxes Included)	37 215	61 948	25 973	56 327
Türkiye (Ankara)
Selling price (before tax)	33 000	55 000	23 000	50 000
Special Consumption Tax (SCT)	(10%) 3 300	(60%) 33 000	(80%) 18 400	(220%) 110 000
VAT 20% (includes the SCT)	7 260	17 600	8 280	32 000
Price (All Taxes Included)	43 560	105 600	49 680	192 000
United Kingdom (London)
Selling price (before tax)	33 000	55 000	23 000	50 000
VAT 20%	6 600	11 000	4 600	10 000
Registration fee	69	69	69	69
Price (All Taxes Included)	39 669	66 069	27 669	60 069
United States (Washington DC)*
Selling price (before tax)	33 000	55 000	23 000	50 000
Sales tax (6%)	1 980	3 300	1 380	3 000
Registration fee (first time)	36	36	36	250
Electric Vehicle Credit	- 7 500	- 7 500	0	0
DC motor vehicle excise tax	0	0	460	4 550
Price (All Taxes Included)	27 516	50 836	24 876	57 800

Notes:

The purpose of this table is to allow a comparison of the level of taxation across member countries and not to reflect the actual local market prices. Therefore, to ease cross-country comparisons on the level of taxes it is assumed, for the purpose of this table, that the selling price before tax of the vehicles is the same in all countries.

To ease cross-country comparison, the cars are divided into four categories of typical vehicles: SUV/Hatchback electric electric, Sedan electric, Sedan electric/hybrid fuel, and Pick-up 4X4 fuel. For simplification purposes, all vehicles are presumed to have air conditioning and to be used for private purposes only i.e. not for business purposes. The vehicle brands and models mentioned in the descriptions below should be considered as examples only. If some of these specific models are not sold on a national market, the tax regime applicable is that of the vehicle whose technical specifications are the closest to those described for the different categories. The specifications for each category are as follows: Category A: SUV/Hatchback electric engine, power 150 KW (204hp), battery capacity 58 kWh, consumption 17 kWh/100km, weight 1730 kg, CO₂ emissions 0g/km, battery range over 400km, price USD 33 000 (example Volkswagen ID3 Performance). Category B: Sedan electric engine, power 370 kW (496 hp), battery capacity 82 kWh, consumption 15 kWh/100km, weight 1830 kg, CO₂ emissions 0g/km, battery range over 400km, price USD 55 000 (example Tesla Model 3 Long Range Dual Motor). Category C: Sedan hybrid electric/fuel engines, fuel engine with cylinder capacity 1.8 litre, power 121 kW (162 hp), unleaded gasoline 95-98 RON, consumption 4.5 l/100 (combined) and electric engine with power 53 kW (71hp), battery capacity 1.3 kWh, weight 1 800kg, CO₂ emissions 115g/km, battery range less than 10km, NOx emissions of 3 mg/km; price USD 23 000 (example Toyota Corolla Hybrid LE). Category D: Pick-up 4X4 with fuel engine, unleaded gasoline 95-98 RON, cylinder capacity 3.5 litre V6, power 300 kW (400 hp), consumption 12.4 l/100, CO₂ emissions 296g/km, NOx emissions of 20 mg/km, weight 2 200 kg; price USD 50 000 (example Ford F – 150 Ecoboost V6). Categories A, B and C are not equipped with four-wheel drive.

When local taxes, fees or duties apply, the table shows data for the capital of the country. It is not intended to reflect all specificities that may occur in the calculation of the taxes (e.g. specific tax base calculation rules such as possible inclusion of registration taxes in the VAT/GST base). Note that relatively low registration taxes or an absence of such taxes do not necessarily reflect an overall general low taxation of vehicles. In some countries, low registration taxes can be compensated by higher annual taxes.

Bonuses mentioned in this table are subsidies from the government on the purchases of new cars designed to encourage the purchase of vehicles with low or very low emissions.

Source: Source: National delegates. Data as of 1 January 2024

Annex Box 4.A.1. Country notes to Annex Table 4.A.2.

Australia. Luxury Car Tax (or LCT) in Australia is a tax on vehicles that have a GST-inclusive value above the LCT threshold. For the 2023/24 financial year, the threshold is AUD 89 332 for fuel efficient vehicles and AUD 76 950 for other vehicles. LCT is imposed at the rate of 33% on the amount above the threshold. The category A-D vehicles do not have a GST-inclusive value above this threshold, therefore LCT will not apply. Registration fees and stamp duty on vehicles in Australia fall under the jurisdiction of each Australia State and Territory. Registration fees will differ according to which State or Territory a vehicle owner resides in, and is influenced by vehicle type, weight, engine size and number of cylinders in that engine. Stamp duty is also calculated differently based on which State or Territory the vehicle owner resides in. Relevant factors include the vehicle value or class and whether any concessions or exemptions apply.

Belgium (Brussels Capital Region). Legislative work is currently ongoing to make the entry into service tax subject to yearly indexation, from the 1st of July 2024 onwards. Legislative work is also ongoing to abolish the ‘light trucks’ regime for pick-up vehicles that are registered by a natural person from the 1st of January 2025 (these vehicles are not subject to the entry into service tax and undergo an annual vehicle tax based on the maximum permissible laden weight - TBC). As a result, pick-up vehicles newly registered by a natural person would have to pay both the entry into service tax and the annual road tax, based on the vehicle’s characteristics.

Canada. A battery electric vehicle as described in Category A would be under the Incentives for Zero-Emission Vehicles (iZEV) Program MSRP cap of CAD 60 000 for base models of SUVs, and it would be eligible for an incentive of CAD 5 000. A battery electric vehicle as described in Category B would be above the iZEV MSRP cap of CAD 55 000 for base models of cars (i.e. sedans) and would not be eligible for any incentives. Under the iZEV Program, conventional hybrid vehicles (i.e. no plug-in capabilities) as described in Category C are not eligible for incentives.

Chile. The acquisition of new vehicles is subject to a green excise tax, which was gradually implemented between 2015 and 2017. The tax base of the excise tax is determined on the basis of the urban performance (km/lt), nitrogen oxide emissions (NOx; gr/km) of the vehicle reported by the Ministry of Transport and Telecommunications as well as the sales price (including VAT) or the final customs value for direct imports according to the invoice or documentation using the following formula: Excise (in UTM) = [(35/urban consumption (km/lt)) + (120 x g/km NOx)] x (sales price x 0,00000006). For the purposes of this table, it has been assumed that combined consumption equals urban consumption. The value of one UTM (monthly tax unit) as of 1 January 2024 was 64 666 CLP. This excise tax is paid only by the registrant of the vehicle in the Registry of Motor Vehicles of the Service of the Civil Registry and Identification. There are two ways to calculate the amount of the tax, one considering the specific brand, type, model and value of the vehicle, and the second by directly entering the Technical Report Code (CIT) and the value of the vehicle. Exemptions: vehicles for the transportation of passengers (more than 9 seats including the driver's seat), vehicles used for taxi services, purchasers of new vans with up to 2,000 kilos of payload capacity by VAT taxpayers, provided that they become part of the taxpayer's fixed assets, trucks, vans or vans with a payload capacity of 2,000 kilos or more and closed vans of lower capacity, tractors, wheelbarrows, automobiles, electrically powered vehicles and self-propelled motor homes, vehicles for police, army, mortuary and ambulance.

Colombia. The Vehicle Registration Fee is subject to procedures that are carried out by the registration agencies and includes two charges: a charge set by the Ministry of Transportation and a charge whose amount is determined by municipal authorities. It is therefore not possible to determine an exact rate at the national level for the process of registering a vehicle. The rate shown in the table is the rate imposed in Bogotá D.C. Hybrid and electric cars are subject to lower rates of customs tax (5% and 0%, respectively).

France. Bonus: the maximum ecological bonus is set at EUR 4 000 and only applies to vehicles declared eligible by ministerial decree. Individuals with an annual income of less than or equal to EUR 15 400 can benefit from an additional EUR 3 000 in purchase subsidy. In addition, a premium is granted for the purchase or leasing of a new vehicle in exchange for scrapping an old diesel or gasoline vehicle. The maximum premium is EUR 4 000 for the purchase of vehicles emitting less than 50 g/km or EUR 6 000 for full electric vehicles. Malus: an additional tax applies to the purchase of new vehicles depending on their CO2 emissions, from EUR 50 for vehicles emitting up to 118 grams CO2/km to EUR 60 000 for vehicles emitting more than 193 grams of CO2/km. Regional tax on motor vehicles: based on horsepower. Rates vary between EUR 33 and EUR 60 per unit of horsepower according to the region, with a maximum of EUR 9 720, and with the possibility of an exemption of 50% or 100%, upon deliberation by the local authority.

Greece. Bonus: Categories A and B: 30% of Price Before Tax (PBT); maximum of EUR 8.000; open to individuals and companies; only for cars with zero CO₂ emissions. Category C: not eligible for bonus. Category D: no bonus for fuel cars. Since 7 June 2024, as part of the “Go Electric” subsidy scheme, the maximum bonus was increased to EUR 9 000 for individuals (Cat. A) and decreased to EUR 6 000 for enterprises (Cat. B) (but still calculated at 30% of the price before taxes).

Italy. Vehicles emitting less than 20 gCO2/km (typically BEVs) receive a EUR 4 000 subsidy and vehicles emitting between 20–60g CO2/km (typically PHEVs) receive a EUR 1 500 subsidy.

Korea. The amounts of the Individual Consumption Tax (ICT administered by the Ministry of Finance) include the reduction for eco-friendly vehicles (electric and hybrid). The Acquisition Tax (administered by the Ministry of Interior and Safety, which has not directly provided the tax amounts shown in this table) is also subject to a reduction for eco-friendly vehicles.

Lithuania. Bonus is available until 1 December 2026 (or until funds are available). For the purchase of a new electric car the compensation is EUR 5 000.

Luxembourg. If the vehicle is first put into circulation no later than on 31 December 2022 inclusive and the date of conclusion of the contract of sale or, in the case of leasing, of the contract for the hire or leasing of the vehicle, is between 1 April 2021 and 31 March 2022 inclusive: (1) for pure electric self-propelled vehicles (BEV) with an electric energy consumption of up to 18 KWh/100 km, the amount of the bonus is EUR 8 000 (but not more than 50% of the cost excluding VAT) for passenger cars; (2) for pure electric self-propelled vehicles (BEV) with an electric energy consumption above 18 KWh/100 km the amount of the bonus is EUR 3 000 (but not more than 50% of the cost excluding VAT) for passenger cars. The bonus is not available any more for plug-in hybrid vehicles from 1 January 2022.

Mexico. The tax on new vehicles is part of the VAT base. Vehicles Category D: Pick-up trucks are considered a cargo vehicle, regardless of its value and use. The new vehicles tax is calculated with a rate of 5%.

Poland. Category A and B: tax exempted if the vehicle complies with the conditions to apply the exemption for electric vehicles i.e. the vehicle utilises for propulsion only electricity accumulated by connection to an external power source. Category C: reduced excise tax rate of 1.55% of the tax base. Category D: taxed with excise tax rate of 18.6% of the tax base. Tax on civil law transactions: Contracts of sale are not subject to tax to the extent that they are subject to VAT or if at least one of the parties is exempt from VAT for this transaction. Tax rate is 2% of the market value. Under “My Electrician” program, individual purchasers of electric cars can apply for a PLN 18 750 subsidy for cars with value up to PLN 225 000. For holders of the Large Family Card, the subsidy is PLN 27 000 and there is no price limit.

Sweden. The bonus för electric and plug-in hybrids has been abolished.

United States. The excise tax in Washington DC is based on the fuel efficiency (in miles per gallon) and weight in Pounds (Lbs). Secretariat calculations based on Washington DC Regulations. Qualified plug-in EV or fuel cell electric vehicles are eligible for an income tax credit (Electric Vehicles Credit) up to USD 7 500. However, the credit applies only to EVs under a manufacturer suggested retail price (MSRP) cap of USD 80 000 for vans, sport utility vehicles, and pickup trucks; and USD 55 000 for other vehicles. Additionally, the tax credit is limited to taxpayers under certain income thresholds. The two vehicles in categories C and D would not qualify for the Electric Vehicle Credits.

Annex Table 4.A.3. Taxes on Ownership or Use of Motor Vehicles

Country	Taxes	Criteria for determining the tax base and amount	Rebates/Exemptions1
Australia	Annual registration fees. States and Territories levy fees for annual registration, third party compulsory insurance and drivers’ licenses. Fees for commercial vehicles are generally higher than the fees for private vehicles. In most States, fees for trucks vary depending on the type of vehicle and the gross vehicle mass. License renewal fees vary to reflect validity periods from one to five years.	Commercial/private use Gross vehicle mass
Austria	Motor Vehicles Tax: All motor vehicles are subject to a Motor Vehicle Tax based on the following criteria: - Lorries above a permissible gross weight of 3.5 tonnes: the weight of the vehicle (from EUR 1.55 to EUR 1.90 per month and ton depending on the weight), - Passenger cars below a permissible gross weight of 3.5 tonnes: engine capacity – 61) x 0,72 Cent + (CO2 Emissions – 103) x 0,72 Cent per month, - All other cars below a permissible gross weight of 3.5 tonnes: (engine Power – 24) x 0,65 to 0,79 Cent per month; and - Motorbikes: (cubic capacity – 52) x 0,014 Cent + (CO2 Emissions – 52) x 0.20 Cent per month.	Weight Engine power Cubic capacity CO2 emissions Electric propulsion	Vehicles used by diplomatic missions and consular offices; armed forces; police; fire brigade; ambulances; mountain rescue; electrically propelled vehicles; self-propelled working machines; trial moving vehicles; taxi services; mopeds and motorcycles with a cubic capacity of maximum 100CC; vehicle used solely in agricultural production and forestry; vehicles used for disabled persons.
Belgium	Federal tax: the tax base for private use of a company car is based on C02 emissions. The deductibility of professional expenses related to the use of the car, including fuel expenses, (50 to 120%) is linked to CO2 emissions. Annual Road Tax: Walloon Region: for cars, mixed cars and minibuses the tax rate depends on fiscal horsepower. and cylinder capacity and is set according to a progressive scale from EUR 97.68 to EUR 2498.50 (from 01/07/2023 to 30/06/2024). For vehicles above 20 hp (more than 41cc cylinder capacity), an additional amount of EUR 136.22 per hp is levied. Vehicles of more than 30 years old (25 years old in the Brussels Capital Region) are subject to an annual tax of EUR 44.30. Flemish Region: for passenger cars, dual-use cars and minibuses that were registered as from 1 January 2016 as well as for vehicles, intended for the transport of goods, hearses, tractors or trailers with a MAM (maximum authorized mass) of less than or equal to 3 500 kg that are registered as from 30 June 2017, the tax rate depends on fiscal horsepower and cylinder capacity or the weight of the vehicle, and includes “ecoboni” and “ecomali”. This implies that the tax rate can be adjusted depending on environmental factors, such as C02 emission, the euro standard and the type of fuel. For these categories of vehicles, that are registered for the first time after 31 December 2020, the “ecoboni” and “ecomali” based on CO2 emission were adapted in light of the WLTP-method for estimating CO2 emissions. As from the fiscal year 2022 this annual tax is only applicable for cars of 30 years of age or older. For leased vehicles and non-leased vehicles other than those mentioned above, the tax rate depends only on the fiscal hp and cylinder capacity and is set according to a progressive scale from EUR 85.14 up to EUR 2179,32. For vehicles with a hp above 20 (more than 41 cc cylinder capacity) an additional amount of EUR 118,80 is levied for each hp higher than 20. A flat tax rate of EUR 38.63 applies for vehicles that have been in traffic for at least 30 years. As from 1 January 2023 an elevated flat tax rate of EUR 99,99 applies (last indexation on 1 July 2023). Brussels Capital Region: for passenger cars the applicable tax rate depends on engine power (expressed in fiscal hp based on the total cylinder capacity of the vehicle) and is set according to a progressive scale from EUR 97.68 to EUR 6 585.22. For electric cars, the minimum rate applies. Vehicles of more than 25 years old are subject to an annual tax of EUR 44.30. (It should be noted that the age at which a vehicle is considered to be an “old-timer” will be increased gradually from 25 to 30 years old by 2025). For motorcycles (with a cylindric capacity of more than 250 cm3) an annual flat-rate tax of EUR 69.30 applies. For light trucks up to and including a maximum permissible laden weight up to and including 3.5 tonnes, as well as for camping cars the tax rate depends on the maximum permissible laden weight. For heavy goods vehicles with a maximum permissible laden weight of over 12 tonnes the tax rate depends on the maximum permissible laden weight, the number of axles and the suspension type. Tax rates are subject to indexation every year, on the first of July. Tax rates in this table reflect the situation as of 1 January 2024. Additional annual road tax is levied in all the regions on cars entirely or partially powered by Liquefied Gas Petroleum. This tax is based on a progressive scale depending on the engine power from EUR 89.16 to EUR 208. 20. Kilometre charge: a kilometre charge is levied in all the Regions on motor vehicles or articulated vehicle combinations intended or used for the carriage by road of goods having a maximum permissible laden weight of over 3,5 tonnes.	Engine power Cylinder capacity Fuel used Environmental characteristics CO2 emissions	All regions provide exemptions for cars used by public authorities, vehicles for disabled people and war invalids, agricultural vehicles, rescue vehicles, trial moving vehicles, ships and little boats, taxi services, mopeds and motorcycles with a cylinder capacity of maximum 250 CC and, for Walloon Region, electric motorcycles of maximum 11KW. Walloon region: For motorcycles, tricycles and quadricycles with a cylinder capacity exceeding 250 CC, the amount applicable on 1 July 2021 was EUR 60,46 An additional road tax applies to cars running on Liquefied Gas Petroleum. Vehicles destined for the transportation of goods with a Maximum Mass Amount below 3.5 tonnes are subject to this tax as soon as they are not registered with the CBE (Crossroads Bank for Enterprises).. Vehicles of which the date of their first registration is older than 30 years must have a licence plate “o” to benefit from the beneficial “age” rate. Flemish Region: as of fiscal year 2016 a tax reduction of EUR 100 is applicable to cars running on Liquefied Gas Petroleum. An exemption is granted for purely electric vehicles. Brussels Capital Region: an exemption is granted to victims of a terrorist attack who are entitled to an invalidity pension of minimum 60%.
Canada	Annual fees. All provinces impose annual fees for the use of motor vehicles. In general, the fees depend on the type of vehicles and in most cases on the weight of the vehicle.	Type Weight	Quebec, British Columbia (BC), and Prince Edward Island (PEI) offer ownership/usage bonuses for ZEVs. PEI exempts ZEVs from annual vehicle registration fees, Quebec offers access to reserved lanes, toll exemptions, and free parking, and BC offers access to HOV lanes.
Chile	Annual Motor Vehicle Tax (levied by municipalities) for the use of motor vehicles on public roads: - Lightweight vehicles: depending on the commercial value of the vehicle. - Passenger vehicles: fixed fee - Cargo vehicles: according to loading capacity.	Commercial value Fixed fee Loading capacity (trucks)	Hybrid and full electric vehicles, and zero emission vehicles qualified as such by the Ministry of Energy; vehicles of the Armed Forces for exclusive military use; vehicles of the Fire Department; vehicles owned or leased with the option to purchase, by diplomatic missions are exempt from the Annual Motor Vehicle Tax..
Colombia	Annual Motor Vehicle Tax. This tax is levied by municipalities for the use of motor vehicles on public roads. The rates depend on the commercial value of the vehicle, as follows: (a) 1,5% of the commercial value of the vehicle when the value of the vehicle is less than COP 48 029 000; (b) 2,5% of the commercial value of the vehicle when the value of the vehicle is greater than COP 48 029 000 and less than COP 108 063 000; (c) 3.5% of the commercial value of the vehicle when the value of the vehicle is greater than COP 108 063 000.	Commercial value
Costa Rica	Annual Motor Vehicle Tax (as reformed in 2023) Tax base and tax rates: have been modified. Accumulated depreciation is recognized, and the value is not increased due to inflation. Additional Deductions related to weight and polluting emissions for automobiles are now considered to encourage modernisation of the fleet. A depreciation factor is established according to the useful life of the vehicle (15 years for automobiles, aircraft or recreational boats, and 10 years for motorcycles). Partial Advance Payments: as of March 2025, the payment of the annual tax will be allowed to be made in partial advance payments during March, June and September. The minimum tax base is determined taking into account depreciation. It will be determined differently for new first-entry vehicles, first-entry used vehicles and the circulating fleet. For new first-time vehicles: the tax base is the customs value understood as the value detailed in the commercial sales invoice of the vehicle purchased abroad, plus the amount for insurance and freight. The customs value does not include customs duties, taxes and fees associated with importation, or other costs in the importation process. For first-time used vehicles and vehicles from the circulating fleet, the tax base is the highest value of the purchase price or the contract value recorded in the public deed when applicable, and the value determined as set out above. Note: if there is no purchase price or contract value, the value will correspond to the simple average of the value of the vehicle, according to information recorded in the National Registry, regarding brand, year, fuel, body and country of manufacture. Note: Law 10390: “Modificación al impuesto sobre la propiedad de vehículos automotores, embarcaciones y aeronaves”, it presents the new methodology for calculating the tax Annual Motor vehicle and the discounts applicable. It applies to all vehicles as of 1 November 2023.	Value	Vehicles owned by foreign embassies and consulates accredited in the country, only for their exclusive use and on a reciprocal basis; vehicles of international organizations that are exclusively used for their functions; vehicles of the central Government and Municipalities; ambulances and rescue units of the Costa Rican Red Cross, the National Hospital System, nursing homes and the National Insurance Institute, including firefighting machines; rubber tire tractors, caterpillar tractors, cane loaders, grain harvesters and any other type of self-propelled agricultural machinery are exempt from the Annual Motor Vehicles Tax.
Czechia	Road tax. The tax is imposed on heavy goods vehicles registered in Czechia whose technically permissible maximum laden mass exceeds 3.5 tonnes. Vehicles are effectively taxed (at rates greater than zero) up to a weight of 12 tonnes. The annual tax amount is set for three separate groups of vehicles: Lorries and vans: the tax rate varies from CZK 0 to CZK 14000 depending on the number of axles and permitted weight of the vehicle in tonnes; Semi-trailer tractors and trailer tractors: the tax rate varies from CZK 0 to CZK 24200 depending on the number of axles and maximum permissible weight in tonnes of the vehicle combination. Trailers (except semi-trailers): the tax rate is either CZK 0 (for trailers with maximum permitted weight below12 tonnes) or CZK 3600. Semi-trailers themselves are not taxable vehicles; their taxation is part of the tax levied for their tractors. Special purpose vehicles are not taxable vehicles. The Czech government is currently considering a reduction of the annual amount of tax (“tax rates”) for vehicles with air suspension of the drive axle or its recognised equivalent. This reduction is in accordance with the possibilities of the EU Directive and will be proposed for entry into effect on 1 January 2025.	Maximum permitted weight of the vehicle in tonnes. Number of axles. Maximum permitted weight of the vehicle combination in tonnes.	Tax exemptions: - Vehicles fitted with a special audible warning device supplemented by a special blue or blue and red warning light recorded on the vehicle's technical certificate; - State material reserve vehicles, if they are not used for business. - Vehicles category O (trailers), in case their taxpayer is the owner of the trailer tractor. - Vehicles owned by diplomatic missions and consular offices (if there is a reciprocal arrangement); providers of medical services, mining rescue service or mountain rescue service, if it is marked in the technical certificate of the vehicle as ambulance or rescue vehicle; the Czech Red Cross, to the extent of exemption under the Act on the Protection of the Emblem and Name of the Red Cross and on the Czechoslovak Red Cross, or the owner of the road, the road administrator or a person authorized by them, if the vehicle is used exclusively on this road. Tax reduction of 25% to 100% applies to vehicles exclusively used for carriage in the combined transport with railway transport or inland waterway transport.
Denmark	Passenger cars and vans semi-annual tax is based on CO2 emissions. Rates range from DKK 340 (>0g CO2/km) up to DKK 12 040 (>645g CO2/km).	CO2 emissions
Estonia	Heavy goods vehicle tax. Varies from EUR 0 to 232,60 (per quarter) depending on the combination of following factors: weight range (12 tonnes to 40 and more tonnes), axel combination (2, 3, 4, 2+1, 2+2, 2+3, 3+2, 3+3), type of suspension (air, other).	Weight range, Axle combination, Type of suspension	Exemptions apply for Defence Force, Defence League, Enforcement Force and Rescue Service, local authorities, NGOs, Foundation and business vehicles intended for rescue operations, heavy goods vehicles.
Finland	Annual tax for passenger cars and delivery vans based on CO2 emissions. If the car does not have emission data in the Vehicular and Driver Data Register, the tax is based on the total mass of the vehicle. Tax rates vary from EUR 53.29 for vehicles emitting from 0g CO2/km up to EUR 654.44 for vehicles emitting 400g CO2/km or more. A tax on driving power is applicable to diesel passenger cars and vans, based on the total mass of the vehicle. The tax on driving power also applies to other cars and vans using less taxed fuels than petrol. For lorries there is an annual tax based on maximum gross weight, number of axles and use of trailer.	CO2 emissions Weight Number of axles (lorries)	Exemptions apply to buses (M2- and M3-categories), emergency vehicles, ambulances, cars belonging to the state or national defense forces, museum cars and diplomatic cars. An exemption also applies for disabled persons.
France	Taxes on passenger vehicles used for economic purposes. (1) annual tax on CO2 emissions; rates vary from EUR 1 for each gramme emitted for cars emitting from 15 g CO2/km up to 55g CO2/km, to EUR 65 for each gramme emitted for cars emitting more than 176g CO2/ km. (2) Annual tax on air pollutants. Taxes rates are EUR 100 for EURO 5 and EURO 6 vehicles (gasoline vehicles) and EURO 500 for others vehicles. Electric vehicles are exempt. Annual tax on heavy goods vehicles (former "axle tax") applies to the following vehicles with a technically permissible laden mass of at least 12 tons - vehicles whose design allows the transport of goods without a trailer or semi-trailer (European categories N2 and N3); - vehicle combinations consisting of a tractor and one or more semi-trailers (European category O); - trailers with a technically permissible laden weight of at least 16 tons. The tax rate is determined according to the number of axles, the maximum technically permissible load of the vehicle, expressed in tons, and the presence or absence of an air suspension system.	Engine power Electric propulsion Type of fuel CO2 emissions	Exemption from annual tax on CO2 emissions: - wheelchair accessible vehicles, - vehicles exclusively assigned by the taxpayer to the rental or temporary use by its customers to replace their immobilized vehicle, - vehicles rented by the taxpayer for a period of not more than one calendar month or thirty consecutive days, - vehicles used for the public transport of people, for the needs of agricultural or forestry activities, for driving lessons and for teaching piloting or sporting competitions; vehicles assigned to non-profit or general interest organisations; vehicles assigned to a sole proprietorship;, - vehicles whose energy source is exclusively electricity, hydrogen or a combination of both, - vehicles whose energy source is a combination of one or more non-fossil fuels (in particular natural gas and liquefied petroleum gas), including when this combination includes gasoline or superethanol, subject to a maximum CO2 emission threshold (or administrative power). From 2025 onwards, vehicles whose energy source is a combination of one or more non-fossil fuels will no longer be exempt. With the exception of the exemption for vehicles whose energy source is a combination of one or more non-fossil fuels, which is conditional on compliance with a maximum CO2 emission threshold, the above-mentioned exemptions from the annual CO2 emission tax also apply to the annual tax on air pollutant from passenger vehicles. Are exempt from these taxes, the vehicles used for national defence, homeland security or road maintenance purposes; vehicles used for internal transportation within the confines of construction sites; collector's vehicles; vehicles used for the transport of goods in the context of circus and fairground activities; vehicles used by riding schools or farmers to transport their crops.
Germany	Motor Vehicle Tax. For passenger cars with a first registration from 1 July 2009, the Motor Vehicle Tax is based mainly on CO2 emissions. It consists of a base tax (according to cylinder capacity) and a CO2 tax. The rates of the base tax are EUR 2 per 100 cc (petrol) and EUR 9.50 per 100 cc (diesel) respectively. The CO2 tax rate depends on the year of first registration and the CO2 emissions and ranges between EUR 2 and EUR 4 per g CO2/km. Cars that were first registered before 1 July 2009 are taxed according to their polluting emissions (EURO-Norm) and cylinder capacity.	Polluting emissions Cylinder capacity CO2 emissions Electric propulsion	Cars with CO2 emissions below 120/110/95 g/km (depending on whether the date of first registration was before 1 January 2012, before 1 January 2014, or on or after 1 January 2014) are exempt from the CO2-element. Only the base tax is due. Exemption for pure electric cars for ten years after the first registration, if the car is registered between 18 May 2011 and 31 December 2025. The time-limited tax exemption is only available until 31 December 2030 at the latest. After the tax exemption has expired, the vehicle tax is assessed by weight and reduced by 50 percent. Other exemptions may apply, e.g. for severely disabled people or emergency vehicles.
Greece	Annual road tax. Passenger cars for private use: annual road tax for cars registered for the first time in Greece/European Union/ European Economic Area on or before 31/10/2010 and on motorcycles and three wheeled cycles regardless of their date of registration: based on cylinder capacity as follows: first registration before 2000, from EUR 22 to EUR 1 230; first registration between 2001 and 2005, from EUR 22 to EUR 1 260; first registration from 2006 onwards, from EUR 22 to EUR 1 380. Annual road tax on cars registered for the first time in Greece/European Union/ European Economic Area on or after 01/11/2010 until 31.12.2020: based on CO2 emission, from EUR 0 to EUR 3.72 per g/CO2. Annual road tax on cars registered for the first time in Greece/European Union/ European Economic Area on or after 01/01/2021: based on CO2 emissions, from EUR 0 to EUR 2.85 per g/CO2. Annual road tax on hybrid passenger cars, above cylinder capacity of 1 549c.c. registered for the first time in Greece/European Union/European Economic Area until 31/10/2010, 60% of the annual road tax on private passenger cars of the relevant category of conventional cars referred above. Annual road tax on hybrid motorcycles and three-wheeled motorcycles of private use, above cylinder capacity of 1 549 c.c. regardless of their date of registration in Greece/European Union/ European Economic Area, 60% of the annual road tax on motorcycles and three wheeled cycles of the relevant category of conventional motorcycles referred above. Passenger cars for public use: annual road tax for cars registered for the first time in Greece/European Union/ European Economic Area on or before 31/10/2010: EUR 290. Annual road tax on public passenger cars registered on or after 01.11.2010 until 31.12.2021, based on CO2 emission, from EUR 0 to EUR 2.80 per gram of CO2.. Annual road tax on public passenger cars registered on or after 01.1.2022, based on CO2 emission, from EUR 0 to EUR 2 per gram of CO2.. Annual road tax on hybrid passenger cars above cylinder capacity of 1 929cc registered for the first time in Greece/European Union/ European Economic Area, before and until 31/10/2010, 50% of the annual road tax on public passenger cars of the relevant category of conventional cars referred above. Annual road tax on hybrid motorcycles and three-wheeled motorcycles of public use above cylinder capacity of 1 929cc regardless of their date of registration in Greece/European Union/ European Economic Area, 50% of the annual road tax of the relevant category of conventional motorcycles and three wheeled cycles referred above. Annual road tax on hybrid passenger cars registered for the first time in Greece/European Union/ European Economic Area, after 1/11/2010 according to CO2 emissions. Annual road tax on electric and hydrogen passenger cars for private and public use, registered for the first time in Greece/European Union/ European Economic Area after 1/11/2010, according to CO2 emissions. Annual road tax on historical cars, from EUR 50 to EUR 200 based on the cylinder capacity. Annual road tax on trucks and truck motorcycles: based on gross weight and on buses, on the number of seats. Annual road tax on historical motorcycles, from EUR 25 to EUR 50, based on cylinder capacity. Annual road tax on individual vehicles of special construction, from EUR 22 to EUR 1 230 based on the cylinder capacity.	Cylinder capacity CO2 emissions Electric propulsion Gross weight (trucks) Number of seats (buses)	Exemptions from the annual road tax. Cars owned by public authorities, municipalities, public hospitals, social security funds; cars owned by Special Account for Research Grants; cars owned by disabled persons, cars owned by parents for the transportation of their disabled children. Electric and hydrogen cars, registered for the first time in Greece/European Union/ European Economic Space until 31/10/2010; electric and hydrogen motorcycles; hybrid cars registered until 31.10.2010 with cylinder capacity up to 1.549cc. Private passenger cars registered for the first time in Greece/European Union/European Economic Space from 01.11.2010 until 31.12.2020 with CO2 emissions up to 90g/km; private passenger cars registered for the first time in Greece/European Union/European Economic Space from 01.01.2021 with CO2 emissions up to 122g/km. Hybrid motorcycles and three wheeled cycles for private use up to 1,549cc; Hybrid motorcycles and three wheeled cycles for public use up to 1,949cc Specified vehicles which are owned and used by organisations with public benefit and are working voluntarily. Historical vehicles (cars, busses, motorcycles), in circulation over than 45 years. Garbage trucks that provide cleaning services to municipalities and belong to Solid Waste Management Agencies and to the Special Interlevel Association of the Prefecture of Attica. ‘Water-carrying” trucks that belong to the Municipal Water Supply and Sewerage Enterprises. Cars and motorcycles, registered with a valid permission of circulation, may be imported for a limited period up to six months per year, by the customs procedure of temporary importation. Exemptions from registration tax is granted to hybrid cars with CO2 emissions less than or equal to 50 g/km. These are exempt from the registration tax by 75%; hybrid cars with CO2 emissions more than or equal to 51g/km are exempt released from the registration tax by 50%; Caravans and automotive wheelhouses are exempt from the registration tax by 75%.
Hungary	Motor vehicle tax is levied according to the engine capacity (in Kw) of passenger cars and motorcycles. The tax base for buses, semi-trailers and caravans is the unladen weight of the vehicle. For lorries the tax is based on net weight plus 50 % of cargo weight. The tax rate for passenger cars and motorcycles is from HUF 140/kW to HUF 345/kW depending on the age of the vehicle (the older the vehicle, the less is due). For lorries, buses, semi-trailers the tax rate is HUF 850/100 kg of the tax base, if the vehicle is equipped with road-saving axles. The tax rate for other lorries, ansd trailers is HUF 1380/100 kg.	Engine capacity Weight (for lorries) Type of axles (for high-duty vehicles) Electric propulsion	Vehicles exempt from the Motor vehicles tax: vehicles owned by budgetary agencies and religious organisations; vehicles owned by social organisations, foundations not subject to profit tax; vehicles owned by public bodies using them for public transport or fire service; vehicles owned by persons seriously disabled or by persons who regularly transport seriously disabled persons up to HUF 13 000 (the tax exemption is available for one vehicle, if its engine capacity does not exceed 100 kW); passenger cars equipped with environment- saving engine. An additional 20% to 30% tax discount applies to trucks and buses depending on the environmental classification.
Iceland	A disposal charge of ISK 900 is levied on each vehicle per six-month period. This charge is payable for 15 years from the date of the first registration of the vehicle in Iceland, except when the vehicle is already 25 years old at the beginning of the payment year. The charge is an environmental tax that is intended to finance the disposal of the vehicle at the end of its useful life. Once the vehicle is delivered for scrap, an ISK 30 000 refund will be paid to the owner. Motor vehicles fuelled with diesel in excess of 10 tonnes are subject to a special weight/distance tax, calculated on the basis of the weight of the vehicle and the number of kilometres driven. Owners of diesel vehicles that weigh less than 10 tonnes do not pay a weight/distance tax. A semi-annual road tax on passenger cars is levied based on the vehicle's carbon dioxide emissions declared by the car manufacturer for combined city and road usage. Where emission data are not available, the tax rate is based on the weight of the vehicle. The semi-annual road tax is ISK 176 for each gram of carbon dioxide emission 168 grams, according to the New European Driving Cycle/NECD in addition to the minimum fee which is ISK 20 000. If CO2 emissions of a vehicle are registered according to World Forum for Harmonization of Vehicle Regulations/WLTP or both NEDC and WLTP the semi-annual road tax is ISK 145 for emission above 204 grams in addition to the minimum fee which is ISK 20 000. Distance-based charge per kilometre was introduced from 1 January 2024 for the use of electric, hydrogen and plug-in hybrid vehicles (passenger cars and vans). This was the first step in introducing a new vehicle and fuel revenue collection scheme that is intended to reflect the actual use of road network. The fee will be ISK 6/km for electric and hydrogen vehicles and ISK 2 per km for plug-in hybrid vehicles. The second step is envisaged in 2025 with the introduction of distance-based charge per kilometre for the use of all vehicles on the road network, including diesel and petrol cars.	Weight Distance CO2 emissions
Ireland	Road tax on private cars based on CO2 emissions. Rates vary from EUR 120 (for 0g CO2/km) to EUR 2 400 (above 225g CO2/km). Tax on commercial vehicles based on net weight: from EUR 333 (<3000 kg) up to EUR 900 (>12 001 kg)	CO2 emissions Weight (commercial vehicles) Electric propulsion	Electrically propelled vehicles: EUR 120 flat rate for private cars and EUR 92 flat rate for commercial vehicles not over 1 500kg
Israel	Annual licensing fees apply to private and commercial vehicles weighing up to 3500 kg in total. Vehicles are divided into seven groups (generally based on the price). The annual licensing fees differentiate according to the year of vehicle production and the group that the vehicle belongs to. The annual licensing fees range from NIS 778 to NIS 4 917. Starting from 1 April 2024 the fees will be updated to NIS 801 to NIS 5 062. Commercial vehicles above 3 500 kg with diesel engine are subject to a different tariff.	Price Age Category	Vehicles for disabled person, diplomats, United Nations Organisations, specific charity institutions.
Italy	Annual Ownership Tax: from EUR 2.58 per KW to EUR 4.95 per KW according to engine cylinder capacity and polluting emissions. Regions are entitled to vary the national rate. A surtax on use of cars and vehicles intended for the transport of persons or goods applies at a rate of EUR 20 for each KW exceeding 185 KW in engine power. The surtax is reduced after five, ten or fifteen years from the construction of the vehicle by 40%, 70% and 85%, respectively	Engine power Polluting emissions Electric propulsion	Exemption of ownership tax applies to vehicles over 30 years old. A flat motors vehicle tax applies on vehicles over 30 years old if still running on public roads. 50% reduction of the motor vehicle tax applies to vehicles of historical and collectors’ interest between 20 and 29 years old, subject to the possession of the certificate of historical relevance. An exemption of 100% from ownership tax applies to electric, LPG and CNG vehicles in the first 5 years (from the first registration) and an exemption of 75% afterwards in many regions. 100% exemption also applies to vehicles for disabled persons.
Japan	Motor Vehicle Tonnage Tax (National) levied on private and commercial vehicles according to weight. The tax rate for passenger vehicles varies from JPY 4 100 per 0,5 tonne up to JPY 6 300 per 0,5 tonne (reduced rates from JPY 2 600 up to JPY 2 800); for lorries from JPY 3 300 per tonne up to JPY 6 300 per tonne (reduced rates from JPY 2 600 up to JPY 2 800). Automobile Tax (Prefecture) levied on private and commercial vehicles according to the type of vehicle and displacement (i.e. displacement of the piston in the cylinder). The tax rate for passenger vehicles ranges from JPY 25 000 up to JPY 110 000 (reduced rates from JPY 7 500 up to JPY 40 700); the rate for lorries: (4-5 tonnes maximum load) is JPY 25 500 (reduced rate: JPY 18 500); and for buses: is (41-50 passengers’ capacity) JPY 49 000 (reduced rate: JPY 17 500). Light Vehicle Tax (Local): levied on light vehicles and motorcycles according to displacement and standards.	Weight Displacement Impact on the environment (incl. Electric/fuel cell propulsion)	Reduced Motor Vehicle Tonnage Tax rates apply to vehicles with low impact on the environment, barrier-free buses and taxis, trucks with collision damage alleviation brake control device, etc. A refund of the Motor Vehicle Tonnage Tax applies to ysed vehicles properly scrapped or destroyed following certain disasters before the expiry date of valid period of inspection certificate. Reduced rates of Automobile Tax and Light Vehicle Tax apply to vehicles with low impact on the environment.
Korea	Annual Vehicle Tax: rates are applicable according to cylinder capacity from KRW 80 per cc up to KRW 200 per cc for non-commercial vehicles; and from KRW 18 per cc to KRW 24 per cc for commercial vehicles. Vehicle Education Tax: 30% of the Annual Vehicle Tax.	Cylinder capacity	Full exemption for disabled persons
Latvia	Annual tax for passenger cars: based on CO2 emissions for cars with first registration after 31 December 2008. CO2 emissions for passenger cars with first registration starting from 2021 are determined according to WLTP method. For cars with first registration from 2005 to 2008, the tax is based on gross weight, motor capacity and maximum motor power. The annual tax for passenger cars registered before 2005 is based only on gross weight. Annual tax for motorcycles: based on motor capacity Annual tax for heavy goods vehicles: based on gross weight and number of axes and type of suspension if gross weight exceeds 12 000 kg.	CO2 emissions Weight (passenger cars and heavy goods vehicles) Motor capacity (passenger cars and motorcycles) Maximum motor power (passenger cars) Number of axes and type of suspension (heavy good vehicles) Electric propulsion.	Main exemptions of the annual tax: - car, motorcycle, tricycle or quadricycle whose owner, holder or driver is a disabled person or a representative of a diplomatic, consular or international organisation or a person who has diplomatic or consular privileges and immunities; - emergency vehicles - vehicles registered with the status of historic motor vehicle - electric vehicles
Lithuania	Charge for buses and heavy vehicles (vignettes). Annual tax rate varies from EUR 365 (for buses) up to EUR 1801 (for heavy vehicles of more than 12 tonnes of gross laden weight).	Vehicle type, category, class and group, emission class, gross laden weight.	Exemptions: vehicles used by public authorities; vehicles specially designed for the use and (or) transportation of disabled persons; vehicles of health care institutions (ambulance and resuscitation cars); buses on local (city and suburban) regular routes.
Luxembourg	Automobile Tax: the annual circulation tax is based on CO2 emissions (WTLP) and the type of fuel used as follows: Tax = a * b * c, where (a) = CO2 emissions component; (b) = multiplier ( 0.9 for cars using gasoil / 0.6 for cars not using gasoil); (c) = additional CO2 multiplier: up to 90 g/km = 0.5; above 90 g/km 0.5 plus 0.1 per additional 10 g/km . For electric vehicles (BEV) a lump sum tax of EUR 30 applies. Tax on heavy vehicles (also known as “Eurovignette”) is levied on vehicles (lorries) with a gross weight of 12 tonnes or more for the use of motor ways. The tax varies according to Euro norms.	CO2 emissions Type of fuel Electric propulsion	Exemptions: vehicles for disabled people; historical vehicles; cars used by public authorities; electrically propelled cars
Mexico	The tax on ownership was eliminated as a Federal Tax as of 2012. State governments may impose a tax on ownership and/or periodic registration of vehicles up to 10 years old. Registration fee is MXN 1090 on average and Tax on ownership usually varies from 2.6% to 25% based on value, type of vehicle and number of passengers.	Value Type of vehicle Number of passengers Electric propulsion	States exempt hybrid and electric vehicles used for public passenger transport; Some states provide exemptions for particular uses. Some states provide a subsidy of 100% for vehicles of any value.
Netherlands	Motor vehicle tax is based on the dead-weight and the fuel type used. A Provincial surtax is applicable. Passenger cars and vans with NOx emissions > 5 mg/km or 10 mg/kWh pay an additional 19% tax. Tax on heavy vehicles (also known as “Eurovignette”) is levied on vehicles (lorries) with a gross weight of 12 tonnes or more for the use of motor ways in the Netherlands. Tax varies according to Euro norms (diesel category);	For motor vehicle tax: Fuel used Weight NOx emissions Region (province) CO2 emissions For tax on heavy vehicles: Number of axles and Polluting emissions	Vehicles with a CO2 emission of 0 are exempt. Low-emission vehicles (CO2 is not exceeding a level of 50 g/km) are subject to a tax reduction of 50%. Other examples of exemptions include: (animal) ambulances; vehicles used by fire brigades and by the police/defense; funerary vehicles; vehicles used to clean, maintain or construct roads; taxis and vehicles older than 40 years. Other special regimes apply such as reduced tax rate for delivery vans owned by entrepreneurs and used for business purposes for at least 10% and for vans equipped for and used by disabled persons.
New Zealand	Vehicle license fees. Most vehicles are required to be continuously licensed in order to operate on public roads. Vehicle licenses are valid for up to 12 months. Fees vary depending on the type of vehicle being licensed.	Vehicle type
Norway	Traffic insurance tax. Daily tax: NOK 9.84 for diesel cars without factory-fitted particle filter and NOK 8.38 for other cars, NOK 6.10 for motorbikes. NOK 1.42 for moped, tractors etc.	Vehicle type Particle filter
Poland	Annual Motor Vehicles Tax is levied at municipal level on heavy goods vehicles with maximum permissible gross laden weight over 3.5 tonnes, road and ballast tractors, trailers and semi-trailers and buses.	Weight Type of vehicle Number of passengers for busses	Exemptions apply to tansport vehicles constituting mobilisation supply, special vehicles and vehicles used for special purposes, historic vehicles. Other exemptions and reduced rates can be introduced by local governments.
Portugal	Annual state and municipal tax on vehicle ownership (reformed on 1 July 2007). For passenger vehicles and mixed-use cars with gross weight not exceeding 2500 Kg registered after the reform, the tax rate is based on motor capacity and CO2 emissions. For vehicles registered since 1981 up to the reform rates vary depending on motor capacity or voltage, date of registration and fuel type. For motorcycles, the tax is based on motor capacity (>=120cc). Vehicle excise duty on lorries above 2.5 tonnes used in public and private transportation of merchandise.	Motor capacity CO2 emissions Electric propulsion Weight Number of axels Vehicle type and fuel Type of suspension	Exemptions apply to vehicles owned by the State (central, regional or local administration), fire brigades, foreign States, diplomatic and consular missions, international organizations, specialized European agencies and disabled persons; vehicles seized by the State for as part of a criminal procedure, ambulances, passengers vehicles destined to rental or taxi services, vehicles used by forest sappers, tractors, funerary vehicles, non-motorized vehicles that are purely electric or moved by renewable energies. A 50% exemption applies to category C vehicles, with weight above 3.5t, used exclusively in an activity of itinerant entertainment or performing arts. A tax exemption is also applies to certain types of vehicles over 30 years old, considered of historic interest and whose annual circulation does not surpass 500 kilometres.
Slovak Republic	Motor Vehicle Tax is imposed only on vehicles that are registered in the Slovak Republic and used to conduct business activities during the tax period. Rates vary depending on the type of vehicle, weight, cylinder capacity, number of axles (for utility vehicles and buses) of the vehicle and type of engine. The annex of the Motor Vehicle Tax Act includes about 85 different tax rates.	Usage Electric propulsion Vehicle type (passenger cars) Weight Cylinder capacity (utility vehicles and buses) Number of axles Type of engine	Exemption: vehicles used by diplomatic missions and consular offices, vehicles used for emergency services (first aid), vehicles for public services - public buses, vehicles used solely in agriculture or forestry. Tax rate for electric vehicles is EUR 0. Tax reduction (50%) for hybrid motor vehicles or hybrid electric vehicles, vehicles using compressed natural gas (CNG) or liquefied natural gas (LNG), hydrogen-powered vehicles, vehicles which were used for combined transport at least 60 times. Tax rates are reduced for the period of 108 months from the date of the first registration of the tvehicle (or for the period of 156 months for buses and trucks): for the first 36 months by 25 % (by 50 % for buses and trucks), for the next 36 months by 20 % (by 40 % for buses and trucks); for the next 36 months by 15 % (by 30 % for buses and trucks); for the next period of 36 months by 20 % for buses and trucks, and for the next period of 12 months by 10 % for buses and trucks. Tax rates for vehicles other than trucks and buses are increased after 144 months from the date of the first registration of the vehicle by 10 % and after 156 months by 20 %. Tax rates for trailers are reduced by 70 % regardless the age of such vehicle.
Slovenia	Circulation tax. An annual fee for the use of road transport vehicles is paid once a year for the use of motor vehicles and trailers in Slovenia by vehicle owners. The fee is paid at the time of renewal of registration certificate. By paying an annual duty a person acquires the right to use a registered vehicle in road traffic for the next 12 months. The amount of the tax depends on the category of the vehicle and is proportionate to the duration of the registration period in a certain year. If a motor vehicle is deregistered from traffic (the vehicle is no longer registered) and the vehicle is not properly decommissioned due to environmental protection, a charge for the deregistered vehicle is paid for motor vehicles of categories M1, N1 and L2e. The charge for a deregistered vehicle is paid for the first time after 2 years of deregistering the vehicle, and then every year on the day of deregistering the vehicle. The duty is payable 10 years after the last deregistration. The fee amounts to 25% of the annual fee, but not less than EUR 25. For electric vehicles of categories M1 and N1, the daily amount is EUR 25, and for vehicles of category L2e EUR 20 .	Cylinder capacity, Engine power, Weight Polluting emissions Electric propulsion Type of suspension Number of seats	Tax exemptions: Tractors and tractor trailers, motorcycles, three-wheeled cycles with engine capacity up to 50 cc and light four-wheeled cycles, light trailers with maximum permissible weight up to 750 kg, motor vehicles registered to the Slovenian Army, Civil Protection, Mountain Rescue Service, Cave Rescue Service, Underwater Rescue Service, Disaster Response Service for Ecological and other Disasters and for Search Operations at Sea, Ecological Laboratory with mobile unit, police and fire-fighting vehicles, ambulances, motor vehicles and trailers registered for diplomatic and consular missions, vehicles owned by certain international organizations, and vehicles used for the transport of disabled persons and old timers. Tax reduction for low polluting trucks: Trucks of category N1: tax reduction for EURO 5 (-25%) and EURO 6 and higher (-35%) and tax increase for EURO 3 (+10%), EURO 2 (+20%), EURO 1 (+30%) and EURO 0 or lower (+40%); Trucks of category N2, N3 and buses (M2, M3): tax reduction for EURO 5 (-25%) and EURO 6 and higher (-35%) and tax increase for EURO 3 (+10%) EURO 2 (+20%), EURO 1 (+30%) and EURO 0 or lower (+40%); Tax reduction for buses and trucks with air suspension (-15%) Tax reduction for old-timers (-80%) and vehicles acquired for transport of families with four or more children (-50%).
Spain	Motor Vehicle Tax (levied by municipalities) based on engine power for passenger cars, passenger capacity for buses, loading capacity for trucks and cylinder volume for motorcycles.	Vehicle type Engine power Cylinder capacity	Official vehicles belonging to public bodies of diplomatic offices, vehicles adapted to disabled people, ambulances, public transport vehicles over nine seats, tractors and other vehicles of agricultural use; historic vehicles.
Sweden	Annual circulation tax based on CO2 emissions applies to cars as of 2006 and later or, older cars that meet at least Euro 4 emission standards. Campers, light goods vehicles and light buses that are taken into use in 2011 or later are taxed based on the CO2 emissions. The tax consists of a basic rate of SEK 360 plus SEK 22 for each gram CO2 the vehicle emits above 111 g/km. If the vehicle can be driven with diesel fuel this sum is multiplied by 2.37 plus SEK 250 or 500 depending on vehicle year. For vehicles that can be driven with alternative fuels, the tax is SEK 360 plus SEK 11 for each gram CO2 the vehicle emits above 111 g/km. New vehicles taxable for the first time after1 July 2018 i.e. vehicle model year 2018 or later, with high emissions of CO2 are taxed at a higher rate for the first three years. Vehicles running on gasoline fuel are taxed at a basic rate of SEK 360, plus a CO2 component consisting of SEK 107 for each gram of CO2 the vehicle emits above 90 g/km up to 130 g/km and SEK 132 for each gram of CO2 the vehicle emits above 130 g/km. If the vehicle can be driven with diesel fuel the same principles apply plus that the amount of CO2 g/km the vehicle emits is multiplied with 13.52 plus SEK 250. After the first three years the CO2 related amount is SEK 22/gram for emissions over 111g/km. From 1 June 2022 onwards, vehicles with emissions exceeding 75 gCO2/km are subject to the increased rate for the first three years and those with emissions exceeding 125 gCO2/km are taxed at SEK 132 per gram during this three-year period.	Weight CO2 emissions Type of fuel
Switzerland	Annual motor vehicle tax - Cantonal (provincial) tax, levied according to the weight or engine volume of the vehicle. Use of Swiss motorways (first and second-class motorways) is generally subject to a federal charge levied in the form of a motorway charge sticker, which costs CHF 40. The obligation to display a motorway charge sticker generally applies to motor vehicles and trailers that are subject to the heavy vehicle charge. This group comprises primarily passenger vehicles, motorbikes, vans, trailers, etc. Motor vehicles and trailers with a total weight exceeding 3.5 tonnes (so-called heavy vehicles) require a motorway charge sticker if they are not subject to the heavy vehicle charge. These include, for example, heavy utility vehicles (e.g. crane lorries). The performance-related heavy vehicle charge (LSVA) depends on the total weight, polluting emissions and kilometres driven in Switzerland. It is levied on all motor vehicles and trailers that have a total permissible laden weight of more than 3.5 tonnes, are used to transport goods, are registered in Switzerland or abroad and are driven on the Swiss public road network. The lump-sum heavy vehicle charge (PSVA) is levied in the form of a lump sum on heavy motor vehicles for the following vehicle types that are driven on the Swiss public road network: heavy passenger vehicles, heavy campervans, motor-homes and caravans, vehicles used for transporting passengers (coaches, buses), tractors and motor carriages, motor vehicles for fun fairs and circuses. Other motor vehicles for the carriage of goods and with a maximum speed of 45 km/h.	Weight Engine volume Kilometres driven Polluting emissions Electric propulsion	Annual motor vehicle tax - Cantonal (provincial) tax: A reduced rate of the motor vehicle tax usually applies to electric and agricultural vehicles. Use of Swiss motorways: exemptions apply to police and fire brigade vehicles and to ambulances. LSVA and PSVA: exemptions apply to police and fire brigade vehicles and to ambulances.as well as to agricultural and forestry vehicles, electric vehicles, veteran vehicles, and driving school vehicles.
Türkiye	Motor Vehicle Tax. Motor vehicles specified in the Law and registered at the related government institution are subject to motor vehicle tax, according to the classification (Scale) of the vehicle. The tax is paid in two instalments. Tax Scales: automobiles, carry-alls, off-road vehicles and similar vehicles and motorcycles that are registered after 31/12/2017 are taxed under the scale No 1. Automobiles, carry-alls, off-road vehicles and similar vehicles and motorcycles that were registered before 31/12/2017 (this day included) are taxed under the scale No 1/A. Minibuses, vans, motor caravans, buses and similar vehicles, small trucks, trucks, tow trucks and similar vehicles are taxed under the scale No II. Planes and helicopters are taxed under the scale No IV. The vehicles in Scales (I), (I/A) and (II) that only have electric engines are taxed with 25% of the tax that applies to the vehicles of the same type.	Weight (maximum take-off weight – maximum total weight) Number of seats Age Value Vehicle type Cylinder capacity Engine power Electric propulsion	Are exempt from motor vehicle tax: vehicles that are registered in the name of General Budget Administrations, Special Budget Administrations, Social Security Administrations, Special Provincial Administrations, Municipalities, Village legal entities, Turkish Red Crescent Association and Disabled and Handicapped people, and vehicles that belong to foreign states’ embassy and consulates, ambassador, chargé d’affaires and consuls and officers of embassies and consulates who are citizens of that country, international committees having center located in Türkiye and foreign officers of these committees, delegates and delegations that come to Türkiye for an official duty and members of these delegates with foreign nationalities.
United Kingdom	Vehicle Excise Duty (VED) on Heavy Goods Vehicles is set according to the number of axles, weight and type of vehicle. VED for buses is based on seating capacity. VED for vans is based on a standard rate. However, there is a lower rate for Euro 4 compliant vans first registered between 01/03/2003 – 31/12/2006 and Euro 5 compliant vans first registered between 01/01/2009 -31 December 2010. Cars that are presented for registration in the UK on or after 1 March 2001 – and before 01/04/17, on the basis of a type approval certificate specifying a carbon dioxide (CO2) emission figure, attract a rate of VED according to the amount of CO2 emitted and the type of fuel used. These cars fall within a 13-banded graduated VED system. The bands are labelled A-M, with band A containing the least polluting vehicles and band M comprising of vehicles that have high CO2 emissions. Full details can be found at www.direct.gov.uk/Motoring Cars registered on or after 01/04/2017 on the basis of a type approval certificate specifying a carbon dioxide (CO2) emission figure, attract a rate of VED for its first vehicle license according to the amount of CO2 emitted and fuel used. For the second vehicle license, vehicles with a list price exceeding GBP 40 000 attract a standard rate of VED plus an additional rate of VED for the first five years. Vehicles with a list price of GBP 40 000 or less attract a standard rate of VED. For private cars which do not fall into the above graduated VED system there is a two-tier threshold: vehicles not over 1549cc and those over 1549cc.	Vehicle type CO2 emissions Type of fuel Electric propulsion	VED exemptions apply to vehicles for disabled people, historic vehicles that are at least 40 years old, limited use vehicles, agricultural machines, mowing machines, steam powered vehicles, electrically propelled vehicles, and electrically assisted pedal cycles. Vehicles belonging to emergency services such as ambulances, fire engine, and the police cars are exempt from VED. Vehicles belonging to Government bodies are also exempt from VED. Alternatively fuelled vehicles and hybrids attract a discounted rate of VED. From 1 April 2025 electric propelled vehicles will no longer be exempt from VED, and the discount for alternatively fuelled vehicles and hybrids will be removed.
United States	Heavy Highway Vehicle Use Tax is imposed on the use of trucks weighing 55 000 pounds or above. For those trucks (except logging trucks) weighing no more than 75 000 pounds, the tax is USD 100 per year plus USD 22 for each 1 000 pounds in excess of 55 000 pounds. For those trucks weighing more than 75 000 pounds, the tax is USD 550. For logging trucks, the tax is USD 75 per year for trucks weighing at least 55 000 pounds plus USD 16.50 per 1 000 pounds in excess of 55 000 pounds. For logging trucks weighing more than 75 000 pounds the tax is USD 412.50. A credit may be claimed for the tax in the following year if the vehicle was driven 5 000 miles or less (7 500 miles or less for agricultural vehicles.). State and local governments may impose a periodic registration, operators’ license, parking and inspection fees as well as property taxes.	Weight (for trucks)

Notes: Insurance premium taxes are not covered in this table.

1. Unless otherwise specified, vehicles used by embassies and other diplomatic missions and international organisations are generally exempted from most taxes.

Source: National delegates; position as of 1 January 2024

Annex Table 4.A.4. Taxation of aviation fuels

Country	Tax	Commercial aviation1 (JET A-1)2		Private/pleasure flights3 (JET A-1/AVGAS)4
		Domestic flights	International flights	Domestic flights	International flights
Australia*	Excise (AUD) per litre	0.03556	0	0.03556 / 0.03556	0
	GST (%)	10	0	10	0
Austria	Excise (EUR) per litre	0	0	0.397/0.587	0.397/0.587
	VAT (%)	20	0	20	0
Belgium	Excise (EUR) per litre	0	0	0.6325307 / 0.6678350	0.6325307 / 0.6678350
	VAT (%)	21	0	21	0
Canada	Excise (CAD) per litre	0.04	0	0.04/0.1	0
	GST (%)	5	0	5	0
Chile*	Excise (CLP) per litre	0	0	0	0
	VAT (%)	19	19	19	19
Colombia	Excise (COP) per litre	53 328	53 328	0	0
	VAT (%)	5	5	5	5
Costa Rica	Excise (CRC) per litre	156.25		156.25 / 260.75	0
	VAT (%)	-	-	-	0
Czechia	Excise (CZK) per litre	9.95	0	9.95	9.95
	VAT (%)	21	0	21	0
Denmark	Excise (DKK) per litre Includes Excise Tax, Environment Tax and the NOx Tax	0	0	3.643	3.643
	VAT (%)	25	0	25	0
Estonia	Excise (EUR) per litre	0	0	0.3301 / 0.563	0.3301 / 0.563
	VAT (%)	22	0	22	0
Finland	Excise (EUR) per litre	0	0	0.7663 / 0.6955	0.7663 / 0.6955
	VAT (%)	24	0	24	0
France	Excise (EUR) per litre	0	0	0.726	0.726
	VAT (%)	20	0	20	0
Germany	Excise (EUR) per litre	0	0	0.6545 / 0.721	0.6545 / 0.721
	VAT (%)	19	0	19	0
Greece	Excise (EUR) per litre	0	0	0.410/0.697	0.410/0.697
	VAT (%)	24	0	24	0
Hungary	Excise (HUF) per litre	0	0	152.55	152.55
	VAT (%)	27	0	27	0
Iceland	Excise (ISK) per litre	0	0	0	0
	VAT (%)	24	0	24	0
Ireland*	Excise (EUR) per litre	0	0	0.5268/0.6064	0.5268/0.6064
	VAT (%)	0	0	13.5	0
Israel	Excise (ILS) per litre	0	0	0	0
	VAT (%)	17	0	17	0
Italy*	Excise (EUR) per litre	0	0	0.3375 / 0.7284	0.3375 / 0.7284
	VAT (%)	22	0	22	0
Japan	Excise (JPY) per litre	9	0	13/13	0
	VAT (%)	10	0	10	0
Korea	Excise (KRW) per litre	0	0	0	0
	VAT (%)	10	0	10	0
Latvia	Excise (EUR) per litre	0	0	0,414 / 0,594	0,414 / 0,594
	VAT (%)	21	0	21	0
Lithuania	Excise (EUR) per litre	0	0	0,33017 / 0,57924	0,33017 / 0,57924
	VAT (%)	21	0	21	0
Luxembourg	Excise (EUR) per litre	0	0	0.41674	0.41674
	VAT (%)	17	0	17	17
Mexico	Excise (MXN) per litre	0	0	0	0
	VAT (%)	16	0	16	0
Netherlands*	Excise (EUR) per litre	0	0	0.62835 / 1.07163	0.62835 / 1.07163
	VAT (%)	21	0	21	0
New Zealand	Excise (NZD) per litre	0	0	0	0
	VAT (%)	15	0	15	0
Norway	Excise (NOK) per litre	0	0	0	0
	VAT (%)	25	0	25	0
	CO2 Tax (non-ETS flights)	3.0	0	3.0	0
	CO2 Tax (ETS flights)	1.72	0	1.72	0
Poland*	Excise (PLN) per litre	0	0	1590/1956	1590/1956
	VAT (%)	23	0	23	0
Portugal*	Excise (EUR) per litre	0	0	0.33759/0.45036	0.33759/0.45036
	VAT (%)	23	0	23	0
Slovak Republic	Excise (EUR) per litre	0	0	0.481	0.481
	VAT (%)	20	0	20	0
Slovenia	Excise (EUR) per litre	0	0	0.330/0.42161	0.330/0.42161
	VAT (%)	22	0	22	0
	Other	0,00911	0,00911	0.0489 / 0.05238	0.0489 / 0.05238
Spain	Excise (EUR) per litre	0	0	0.378	0.378
	VAT (%)	21	0	21	0
Sweden	Excise (SEK) per litre	0	0	4.192/5.75	4.192/5.75
	VAT (%)	25	0	25	0
Switzerland	Excise (CHF) per litre	0.7395	0	0.7395/0.7682	0
	VAT (%)	8.1	0	8.1	0
Türkiye	Excise (TRY) per litre	0	0	0	0
	VAT (%)	20	0	20	0
United Kingdom	Excise (GBP) per litre	0	0	0.5295/0.3629	0.0/0.3629
	VAT (%)	20	0	20	0
United States*	Excise (USD) per litre	0.0116	0	0.0579/0.0512	0
	Sales taxes (%)

Notes:

Fuels considered in this table are JET A-1 used in turbine engines and AVGAS used in piston-engine aircrafts. This table does not include fuels on board of aircrafts when they land in a jurisdiction covered by the ICAO Chicago Convention and specific fuels for military use or for use in Nordic areas.

For the purposes of this table, taxes on aviation fuel only include consumption taxes (either ad valorem or specific) that have a direct impact on the sales price of a litre of fuel. Are therefore excluded, for example, the burdens imposed on importers or refiners as part of an emission trading scheme.

1. For the purpose of this table, “commercial aviation” means aviation for the transport of goods or passengers for consideration, whatever the type of plane.

2. For the purpose of this table, it is assumed that commercial flights (passenger and cargo) only use JET A-1 fuels.

3. For the purpose of this table, “private/pleasure flights” means flights that are not considered as commercial flights.

4. For private/pleasure flights, both rates for JET A-1 and AVGAS fuels are shown.

5. The tax covers fuel for all domestic flights, but domestic flights that are also covered by the EU Emission Trading System (ETS) and domestic flights not covered by the ETS are subject to different tax rates.

Source: National delegates. Situation as of 1 January 2024

Annex Box 4.A.2. Country notes to Annex Table 4.A.6. Taxation of aviation fuel

Canada. The federal Goods and Services Tax is levied at a rate of 5% on aviation fuel and gasoline used in domestic flights. The federal excise rate, when applicable, is CAD 0.04 per litre of aviation fuel and CAD 0.10 per litre of aviation gasoline. Provinces and territories may also impose additional sales taxes and excise rates over and above the applicable federal rate.

Chile. Commercial services provided by aviation companies (notably, international cargo and/or passenger flights) to non-residents are considered exports. The aviation companies are therefore entitled to claim the refund of the VAT incurred on fuel purchases. The practical effect can then be similar to the application of a zero-rate (for ease of reading of the table, the VAT rate indicated in the table is 0 although in practice it is taxed and refunded to aviation companies and to non-residents).

Colombia. Jet A1 aviation fuel and/or domestic 100/130 aviation fuel is subject to 5% of VAT. Aviation fuel supplied for national passenger air transportation services to and from some departments are not subject to VAT. The tax base for the calculation of the VAT amount included in the consumer price is determined on the basis of objective and subjective criteria as follows for 100/130 octane aviation gasoline: (a) for the producer: the official list price at the refinery; (b) for the wholesale distributor: the official list price at the refinery plus a marketing margin. The excise tax is a specific carbon tax that is indexed annually; for 2024 the tariff is of COP 202 per gallon for jet fuel.

Estonia. Aviation gasoline used for private pleasure flights is subject to an excise rate of EUR 563/1000l.

Finland. The excise amount includes energy content tax, CO₂ tax and strategic stockpile fee.

France. As of 1 January 2024, the excise rate on JET A-1 and AVGAS have been raised up to excise rate on road gasolines.

Germany. Fuels used for private pleasure flights are taxed at an excise rate of EUR 654,50 /1000 l (JET A-1) and 721 /1000l (AVGAS).

Greece. The VAT rate for aviation fuel is 24%. However, in each case the Directive 2006/112/ΕC is applied and a conditional exemption is provided, which is reflected as a 0% rate. For private/pleasure flights the excise duty rates for AVGAS (CN code 27101231, 27101270) are EUR 697/1000 litres and for JET A-1 (CN codes 2710 1921, 2710 1925) EUR 410/1000 litres.

Hungary. The excise amount depends on the world market price of crude oil. If the world market price of crude oil is higher than USD 50/barrel the excise amount is HUF 152.55/litre. If the world market price of crude oil is USD 50/barrel or less the excise amount is HUF 157.55/litre.

Ireland. AVGAS used for commercial aviation is partially relieved from excise. The rate of relief is EUR 0.2323 per litre giving an effective ‘Excise’ rate of EUR 0.3741 per litre. Aviation Fuel is subject to the standard VAT rate of 23% but it can be subject to the zero rate (0%) in certain circumstances, namely where aircraft is used or to be used by a transport undertaking operating for reward chiefly on international routes. Also, Kerosene used as aviation fuel is subject to the reduced rated of 13.5%.

Netherlands. A zero VAT rate applies to fuels for aircrafts that are used by airlines that are mainly occupied with the international transportation of persons or goods against remuneration.

Poland. Both fuel charge and excise tax are imposed on aviation fuels. The rate shown in the table includes the excise duty of PLN 1.446/l (JETA-1) and PLN 1.822 (AVGAS) and the fuel charge of PLN 0,18632per kg). As the national excise rates are expressed in PLN per litre whereas fuel charge rate is expressed per kg, the rate for the fuel charge has been converted into a rate per litre by applying the appropriate density of the fuel.

Portugal. Aviation fuels used for commercial flights (i.e. flights for the transport of goods or passengers for consideration, whatever the type of plane) are exempt from excise duties. Fuels used for pleasure private flights are taxed at an excise rate of EUR 450.36 per 1000 litres for aviation gasoline (AVGAS) and EUR 337.59 per 1 000 litres for jet fuel (JET A-1).

Slovenia. Aviation fuels used for private/pleasure flights are taxed at an excise rate of EUR 330.00 per 1000 litres JET A-1 and EUR 460.51 per 1000 litres AVGAS plus a CO₂ tax of EUR 39.79 per 1000 litres JET A-1 and EUR 43.25 per 1000 litres AVGAS. Aviation fuels are also subject to surcharge for the promotion of electricity generation from renewable energy sources and high-efficiency cogeneration at EUR 9.11 per 1000 litres JET A-1 and 9.13 per 1000 litres AVGAS. There are no domestic commercial flights in Slovenia.

United States. For commercial aviation, the federal tax rate in the US is USD 0.044 per gallon (EUR 0.010 per litre). For non-commercial aviation, kerosene is generally taxed at USD 0.219 per gallon. Aviation gasoline is taxed at USD 0.194 per gallon. In addition, states or local authorities can levy additional taxes on aviation fuel varying from USD 0 and USD 0.235 per gallon for jet fuel (District of Columbia) and USD 0 to USD 0.38 per gallon (Massachussets) for Aviation Gasoline. There is no federal sales tax; States and local sales rates vary from 0% (Delaware, Montana, New Hampshire, and Oregon) to more than 9.5% (Tennessee and Louisiana); however, sales tax does not apply to aviation fuel in every state.