ROMSO Cyprus Knowledge Base

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Registration tax is a tax levied by some countries – in addition to VAT – once in connection with the registration of a car or truck, regardless of its name (registration tax, registration tax, excise duty, eco-bonus/Ökomalus system, etc.). However, it does not include the administrative fees for the registration of a vehicle or the costs of technical inspections.

Measurement basis
In determining the tax, different tax bases and combinations thereof apply. The most common assessment basis is the purchase price of the vehicle. In some countries, the type of drive, the engine power, the age and/or weight of the vehicle and the safety equipment are used as the rated basis. Some countries consider ecological aspects with fuel consumption. In other countries, the levy has regional differences. In still other countries, technical characteristics of the vehicles are converted for the assessment of the levy (engine rating).

Car registration tax
The levy is (as of 2005) an ad valorem tax on the net price in Greece, the Netherlands, Austria, Poland, Slovenia, Spain and Hungary; in Denmark, Finland, Ireland and Malta, it is levied on the gross price (including VAT). A two-dimensional tariff is applied in all countries that impose an ad valorem tax or a discount is applied to the tax base, which depends on the characteristics of the vehicle.
The levy is structured as a quantity tax in Belgium, France, Italy, Latvia, Norway, Poland and Cyprus.
Viewed across all countries, the charge for a medium-sized vehicle ranges up to 105 / 180% (in Denmark).
In countries that charge an administrative fee for the registration of passenger cars, this is up to 170 €.

Registration tax on lorries
In addition to VAT on purchases, in some EU Member States a levy is also levied for the approval of lorries.

Registration tax on pleasure boats
In Spain, certain leisure boats are subject to registration tax.

Other taxes related to motor vehicles
The owner of a car or truck registered for traffic has to pay a motor vehicle tax periodically in almost all states. In addition, in some countries taxes on the insurance premiums (e.g. for liability insurance or comprehensive insurance) have to be paid. In several countries, parafiscal charges are levied on civil liability premiums for certain types of vehicles.

Insurance tax (Germany)

EU law
A registration tax is levied not because the border of the Member State which introduced it is crossed, but on the occasion of the first registration of the vehicle on the territory of that State. It belongs to a general system of duties on goods and is therefore in accordance with the standards of the article