| Abstract: | In the master's thesis, we addressed the area of vehicle tax legislation in Slovenia and selected EU countries. We examined the taxation in Slovenia, Austria, Germany, Croatia and Denmark, which, despite all being Member States of the European Union, still varies considerably.
The European Union is working to unify the Member States' markets, and by adopting directives, influencing the harmonisation of Member States' rules and regulations. Value-added tax is recognized in all Member States and is also the most unified among all laws. However, value-added tax rates still vary considerably between countries, ranging from 17 % to 27 %. All acquisitions of new, and in some cases, second-hand vehicles are subject to VAT. In Slovenia, in addition to value-added tax, vehicles are also subject to a motor vehicle tax. Both have undergone significant changes in recent years. In 2022, article 66b was added to the Law on Value-Added Tax, granting the right to deduct value-added tax for the purchase of electric cars for business use. In 2021, a new Motor Vehicle Tax Act came into effect, which is based on CO2 emissions and no longer takes the value of the vehicle into account, marking a significant change in the field of vehicle taxation in Slovenia. It also abolished the luxury DMV, which had led buyers of more expensive vehicles to buy and register them abroad rather than in Slovenia. However, the Motor Vehicle Tax Act does not cover watercraft and aircraft.
In Austria, vehicles are subject to a normal fuel consumption tax upon first registration, in Germany to a motor vehicle tax, in Croatia to a special motor vehicle tax and in Denmark to a vehicle registration tax. All mentioned are one-off taxes, except for the German motor vehicle tax. Germany does not have a one-off tax equivalent to the Slovenian one, but it is comparable because the calculation method, like in Slovenia, is based on CO2 emissions and is paid upon vehicle registration, when it is not yet included in the sale price of the vehicle. In Austria, however, vehicles are also subject to a periodic motor vehicle tax and a motor insurance tax, while in Denmark there are three periodic taxes, of which only one is paid, depending on the vehicle’s first registration date, as the taxes are mutually exclusive. In Croatia, in addition to the special motor vehicle tax, there is also a road motor vehicle tax.
Of the countries under consideration, Slovenia and Croatia have a specific legal regime for watercraft and the master's thesis also covers when the tax liability arises and the criteria involved. For the purposes of comparative analysis, we have focused on road vehicles, as the tax legislation for these type of vehicles is more regulated and clearly defined and determined.
The original purpose of the motor vehicle tax is slowly shifting from raising funds for the national budget and regulating the car market towards increasingly environmental objectives. Such as reducing CO2 emissions, improving the safety and age of the vehicle fleet and encouraging the purchase of environmentally friendly vehicles.
In the conducted analysis, where we compared the taxation of the acquisition of a new passenger car in Slovenia and selected countries, the country with by far the highest taxation is Denmark. Slovenia ranked first as the country with the lowest amount. |
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