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What does "Kraftfahrzeugsteuer" mean in English?

Last updated on 9 April 2024

Kraftfahrzeugsteuer, literally translated as “motor vehicle tax,” is a tax imposed on the ownership of motor vehicles in Germany. This tax is applicable to all types of motor vehicles, including cars, motorcycles, trucks, and buses, that are registered and used on public roads.

What is “Kraftfahrzeugsteuer”?

Kraftfahrzeugsteuer is a mandatory tax for vehicle owners in Germany, aimed at generating revenue for the government. The tax is calculated based on various factors such as the vehicle’s engine size, type of fuel, CO2 emissions, and environmental impact. The funds collected from this tax are used to finance public infrastructure projects, maintain roads, and promote environmentally friendly transportation options[1][4][15].

More information about “Kraftfahrzeugsteuer”

The tax rate for Kraftfahrzeugsteuer varies depending on the vehicle’s specifications. For new cars registered after January 1, 2012, the tax calculation includes two components: one based on engine size and another on CO2 emissions. Vehicles emitting less than 110 grams of CO2 per kilometer are exempt from the CO2 component of the tax. This system encourages the adoption of “greener” vehicles with lower emissions[15]. Additionally, certain vehicles, such as electric or hybrid cars, may qualify for tax exemptions or reductions, promoting sustainability[4].

Here are some additional terms that are related to Kraftfahrzeugsteuer:

  • CO2 Emissions: The amount of carbon dioxide emissions produced by a vehicle, which influences the Kraftfahrzeugsteuer rate for newer vehicles[15].
  • Umweltplakette: A sticker indicating a vehicle’s environmental category based on its emissions. This is relevant for entering low-emission zones in German cities.
  • TÜV: Technical inspection service for vehicles in Germany, ensuring that vehicles meet safety and environmental standards.

Kraftfahrzeugsteuer plays a crucial role in Germany’s efforts to maintain and improve its transportation infrastructure while encouraging responsible vehicle ownership and usage.

Sources

[1] https://www.pdffiller.com/360741000--SEPA_Stand-2014-06-20pdf-kraftfahrzeugsteuer- [2] https://www.bundestag.de/resource/blob/630064/d7706ef283703775c5ece2220b384818/WD-4-009-19-pdf-data.pdf [3] https://www.fidi.org/sites/default/files/public/2021-07/GERMANY%20Import%20-%20FIDI%20Customs%20Guide%20%282nd%20revision%202021%29_0.pdf [4] https://www.cardino.de/en/blog-posts/car-tax-kfz-steuer-germany [5] https://www.haufe.de/finance/haufe-finance-office-premium/kraftfahrzeugsteuer-besteuerung-von-personenkraftwagen-22-ergaenzende-begriffsbestimmung-des-kraftstg-uebergangsregelung_idesk_PI20354_HI2680385.html [6] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX%3A31999L0062 [7] https://www.fahrzeugindustrie.at/fileadmin/content/Zahlen___Fakten/Steuern/Austria_2017NEW.pdf [8] https://strassenverkehrsordnung.jimdofree.com/verkehrsstraftaten/abgabenordnung-kraftfahrzeugsteuergesetz/ [9] https://www.acea.auto/files/ACEA_Tax_Guide_2022.pdf [10] https://allaboutberlin.com/glossary/Kraftfahrzeugsteuer [11] https://kfz-steuer.wiki/en/car-tax-germany/ [12] https://en.wikipedia.org/wiki/Vehicle_Excise_Duty [13] https://www.usp.gv.at/en/steuern-finanzen/weitere-steuern-und-abgaben/kraftfahrzeugsteuer.html [14] https://theicct.org/sites/default/files/publications/EU_vehicle_taxation_Report_20181214_0.pdf [15] https://www.angloinfo.com/how-to/germany/money/german-taxes/vehicle-tax [16] https://www.expatica.com/de/living/transportation/how-to-buy-a-car-in-germany-100929/ [17] https://kfz-steuer.wiki/en/ [18] https://www.zoll.de/DE/Fachthemen/Steuern/Verkehrsteuern/Kraftfahrzeugsteuer/Steuerverguenstigungen/Allgemeines/allgemeines_node.html [19] https://www.zoll.de/DE/Fachthemen/Steuern/Verkehrsteuern/Kraftfahrzeugsteuer/Steuerverguenstigungen/Auslaendische-Fahrzeuge/auslaendische-fahrzeuge_node.html [20] https://verwaltung.bund.de/leistungsverzeichnis/en/leistung/99102015111000