Austria: New Motor Vehicle Insurance Tax (VIT) rules from April 2025

Edit Buliczka
March 21, 2025

On 18th March 2025, the Budget Restructuring Measures Act 2025 (7/2025) was published in the Austrian Federal Law Gazette.

Among other tax measures, the Insurance Tax (IPT) Act was amended. In Austria, the IPT Act includes rules for the taxation of insurance policies covering motor vehicles. The changes can be summarised as follows:

a)     Abolishment of the Motor Vehicle Insurance Tax (VIT) exemption for electric cars

b)     Introduction of specific VIT rates for electric cars

c)      VIT exemption remains for motorcycles

d)     New VIT deduction rules for plug-in hybrid cars

The new rules are effective as of 1st April 2025, however, payments of the VIT difference resulting from these changes should take place by 15th November 2025 (or at the latest by 17th December 2025).

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Edit Buliczka

Edit is a senior regulatory counsel. She joined Sovos in January 2016 and has extensive IPT knowledge and experience. Her role ensures the IPT teams and systems at Sovos are always updated with legislative changes. She is a Hungarian registered tax expert and chartered accountant and has worked for companies in Hungary including Deloitte and KPMG and as an indirect tax manager she worked for AIG in Budapest. She graduated with an economist degree from Budapest Business School, faculty of finance and accountancy and also she has a postgraduate diploma from ELTE Legal University in Budapest.
Share This Post