NoVA transition regulation extended

Although the new regulation on the standard consumption tax (NoVA) has already come into effect as of July 1, 2021 – with increases resulting from the ecologicalization – the transition period for the NoVA was extended until May 2022. The transition period provides for an exception from the new, increased NoVA and is applicable for the first time in cases where a purchase contract for a motor vehicle was concluded before June 1, 2021, but the delivery only took place after July 1, 2021, but before November 1, 2021. For such deliveries, the previously applicable (more favorable) legal regime was therefore still applicable.

The extension of the deadline is now due to COVID-19-related delivery difficulties and bottlenecks in semiconductor production and is de facto leading to significant delays in the automotive industry’s supply chains. The waiting times for the delivery of motor vehicles can currently be extended by many months, which is why legal certainty should be created and a smooth transition to the new legal situation as possible as possible should be enabled.

Therefore, at the end of 2021, this transition period was extended from November 1, 2021 to May 1, 2022. By extending the delivery deadline to May 1, 2022, lengthy discussions and also a significantly higher financial burden due to the new regulation of the NoVA are to be avoided.

Image: © Adobe Stock - Andrey Popov