Tax exemption for N1 vehicles: relief for entrepreneurs in Austria!

Tax exemption for N1 vehicles: relief for entrepreneurs in Austria!

Österreich - The upcoming changes to the standard consumption tax (Nova) for N1 vehicles that come into force from July 1, 2025 are positive in the vehicle trade. Klaus Edelsbrunner, chairman of the federal committee vehicle trade in the WKÖ, welcomes the clarifications of the Nova exemption for this vehicle class. This exemption was decided in the 2025 government program and has the goal of improving the conditions for light commercial vehicles, i.e. N1 vehicles. This is a crucial success for vehicle trade after the abolition of the Nova obligation for the entire vehicle class N1 was announced in March 2025.

originally provided for the draft law that the Nova exemption was linked to the criterion of "simple equipment". This would have led to an additional burden on N1 vehicles because they would have been treated according to a less favorable calculation formula for M1 vehicles. After intensive discussions with political decision -makers, however, the central concerns of the vehicle trade could be taken into account. The "simple equipment" criterion now only applies to vehicles with an open structure and a specific side wall configuration.

News about Nova exemption

Another important element of the new regulation is the introduction of a transitional arrangement. The old legal situation can be used for vehicles that have a purchase contract before July 1, 2025 and whose delivery will take place by December 31, 2025 at the latest. This should prevent tax additional loads due to delivery times. Edelsbrunner emphasizes that the changes represent a significant improvement compared to the original draft and thus benefit the vehicle dealers and their customers.

The Nova itself is a tax that is due when the first registration of vehicles in Austria. From July 2025, this delivery for N1 vehicles, which includes panel vans, platform trolleys and vans, will be eliminated. Manufacturers such as Ford Transit, Mercedes Sprinter and VW Crafter benefit from this relief, which also applies retrospectively to all approvals from July 1, 2025. Vehicles that are approved before this deadline are still subject to Nova.

economic effects

The tax exemption has significant financial advantages for entrepreneurs, craftsmen, farmers and private individuals who use N1 vehicles. For example, a typical small van without Nova can cost around 4,200 euros less, which corresponds to a tax saving of around 1,890 euros per vehicle. Overall, the Nova exemption leads to annual savings of around 142 million euros for Austrian companies, which is particularly important for small and medium-sized companies.

The Federal Government's relief package, which includes the Nova exemption for N1 vehicles, aims to restore the legal condition before the introduction of Nova in 2021. Demonstration vehicles that are approved after July 1, 2025 are also no longer subject to the Nova obligation. This ensures that both dealers and buyers can benefit from the new regulations.

With the upcoming reform, modernization of the vehicle fleets is expected, even if a slight increase in emissions could be recorded at short notice. The adjustments thus show the government's endeavor to relieve the vehicle trade and at the same time to take into account environmental policy goals.

For more information on the new regulations on the Nova for N1 vehicles, see: OTS , Team 23 Tax and WKO .