The automobile importers, the vehicle dealers and the association of leasing companies are taking to the barricades against a change in the law. As part of the Anti-Fraud Act, the federal government is planning to abolish the refund of the standard consumption tax (NoVA) when exporting vehicles without replacement. Previously, the NoVA refund was calculated based on the current value.
“Firstly, it’s about vehicles, mainly lease returns, which are marketed across Europe and which are then too expensive for those countries that don’t have NoVA,” says Günther Kerle, spokesman for the automobile importers, to KURIER. “Secondly, this regulation would give preference to foreign leasing companies. An Austrian leasing company has to pay the entire NoVA, regardless of whether the car runs for two, three or four years in Austria. The foreign leasing company only needs to pay a Nova share for the use of the vehicle in Austria.” Addendum: “Financing a vehicle through a foreign leasing company is then cheaper than with an Austrian leasing company.”
An example: A new car cost 40,000 euros and Nova accounts for 5,000 euros. After three years, the used car you sell costs 30,000 euros and the Nova, 4,000 euros, can be taken back.
Stay competitive
“Then the used vehicle only costs 26,000 euros, and that makes me competitive in Europe,” says Klaus Edelsbrunner, chairman of the Federal Committee for Vehicle Trade in the Chamber of Commerce, to KURIER. “But if I have the car for 30,000 euros because I can’t get the NoVA back, then I can’t sell the car abroad.”
The majority of used vehicles and lease returns are currently exported to EU countries. “The automobile importers make daily registrations, and these are often sold into Europe,” confirms Edelsbrunner. “But there are also dealers who specialize in car exports and who buy and sell rental cars.” Particularly in regions close to the border, used cars are often sold abroad whose prices will no longer be competitive in the future.
Significantly lower residual values
There is also the trade-in of used cars when buying a new car. “If a customer trades in a used car in the future, I have to deduct the pro-rata NoVA because otherwise I won’t be able to sell the car abroad,” says Edelsbrunner. “The end customer is also harmed.” Ultimately, the prices for used cars will fall.
“If I can no longer sell the vehicles abroad and they have to be sold in Austria, there will be an oversupply of used cars, which will drive down the price,” warns Günther Kerle. In return, the rates for leasing cars become more expensive because the leasing companies have to calculate the contracts with significantly lower residual values.