Insights
TAX & BUSINESS
NoVA exemption for light commercial vehicles
As part of the relief package for small and medium‑sized enterprises, the National Council decided on 16 June 2025 to abolish the standard consumption tax (NoVA) for light commercial vehicles of class N1 with a maximum authorised total weight of up to 3.5 tonnes from 1 July 2025.
Standard consumption tax (NoVA)
The standard consumption tax is a one‑off tax payable, which currently applies, among other things, to the delivery or first registration of passenger cars (class M1), motorcycles (class L) and commercial vehicles up to 3,500 kg (class N1). The amount of the tax depends on the purchase price, the vehicle’s power and its emissions. In principle: the more expensive the vehicle and the higher the emissions, the higher the standard consumption tax.
Exemption for vehicles of class N1
From 1 July 2025 only vehicles that are used for “principal” passenger transport will be subject to the standard consumption tax. Conventional vans, box trucks or flatbed trucks with a single row of seats, however, will be exempt from the tax. The exemption for box‑ and flatbed trucks (including pick‑ups) with two rows of seats applies only if the cargo space or loading area meets specific requirements in terms of its nature or size. Furthermore, the exemption for a flatbed truck with two rows of seats applies only if it has a simple equipment level, a term that the Ministry of Finance will clarify in more detail.
Demonstration vehicles and temporary registrations of class N1
Also demonstration vehicles of class N1 are no longer subject to the NoVA obligation under the new legislative initiative. The following should be noted: if such a small truck is registered as a demonstration vehicle at the dealer, a NoVA exemption already exists. Only when a demonstration vehicle is registered to an end‑customer is it checked whether the NoVA obligation applies. Consequently, if a demonstration vehicle of class N1 is sold to a customer and registered to them from 1 July 2025, no NoVA will be due.
For temporary registrations of class N1 (registration to the vehicle dealer, no use on public roads) the point at which a NoVA‑liable event arises must be considered. Temporary registrations are generally exempt from NoVA if the registration is to a vehicle dealer and does not last longer than three months. If the three‑month period expires before 1 July 2025 without the vehicle being deregistered, the obligation to pay NoVA arises, although a subsequent sale to the end‑customer will not trigger an additional NoVA. If the three‑month period ends after 1 July 2025, deregistration is not required and the light commercial vehicle will no longer be subject to NoVA on sale.
Conclusion
The approved exemption for small trucks (vehicles of class N1) from 1 July 2025 means that acquiring these vehicles will become considerably cheaper. Likewise, for demonstration vehicles of this class, no NoVA will be payable on disposal or delivery in the future. For temporary registrations a special rule applies, whereby a tax liability still arises if the relevant three‑month period expires before 1 July 2025.
The standard consumption tax is a one‑off tax payable, which currently applies, among other things, to the delivery or first registration of passenger cars (class M1), motorcycles (class L) and commercial vehicles up to 3,500 kg (class N1). The amount of the tax depends on the purchase price, the vehicle’s power and its emissions. In principle: the more expensive the vehicle and the higher the emissions, the higher the standard consumption tax.
Exemption for vehicles of class N1
From 1 July 2025 only vehicles that are used for “principal” passenger transport will be subject to the standard consumption tax. Conventional vans, box trucks or flatbed trucks with a single row of seats, however, will be exempt from the tax. The exemption for box‑ and flatbed trucks (including pick‑ups) with two rows of seats applies only if the cargo space or loading area meets specific requirements in terms of its nature or size. Furthermore, the exemption for a flatbed truck with two rows of seats applies only if it has a simple equipment level, a term that the Ministry of Finance will clarify in more detail.
Demonstration vehicles and temporary registrations of class N1
Also demonstration vehicles of class N1 are no longer subject to the NoVA obligation under the new legislative initiative. The following should be noted: if such a small truck is registered as a demonstration vehicle at the dealer, a NoVA exemption already exists. Only when a demonstration vehicle is registered to an end‑customer is it checked whether the NoVA obligation applies. Consequently, if a demonstration vehicle of class N1 is sold to a customer and registered to them from 1 July 2025, no NoVA will be due.
For temporary registrations of class N1 (registration to the vehicle dealer, no use on public roads) the point at which a NoVA‑liable event arises must be considered. Temporary registrations are generally exempt from NoVA if the registration is to a vehicle dealer and does not last longer than three months. If the three‑month period expires before 1 July 2025 without the vehicle being deregistered, the obligation to pay NoVA arises, although a subsequent sale to the end‑customer will not trigger an additional NoVA. If the three‑month period ends after 1 July 2025, deregistration is not required and the light commercial vehicle will no longer be subject to NoVA on sale.
Conclusion
The approved exemption for small trucks (vehicles of class N1) from 1 July 2025 means that acquiring these vehicles will become considerably cheaper. Likewise, for demonstration vehicles of this class, no NoVA will be payable on disposal or delivery in the future. For temporary registrations a special rule applies, whereby a tax liability still arises if the relevant three‑month period expires before 1 July 2025.