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Everything you need to know when driving a car with a foreign registration plate

In an increasingly globalised world, cross-border use of motor vehicles becomes increasingly important. You will learn in the following blog entry which rules apply for driving vehicles with a foreign registration plate and which penalties are imposed in case of violation.

 

How long a vehicle with a foreign registration plate may be used in Austria depends on whether the permanent location of the vehicle is in Austria or abroad. It must be noted that the permanent location of a vehicle corresponds to the place of residence of the vehicle user.

 

Vehicle users with place of residence in Austria: one month period!

In general, vehicle users with place of residence and centre of vital interests in Austria are only allowed to drive vehicles with an Austrian vehicle registration and an Austrian registration plate. In order to receive these, a valid civil liability insurance for motor vehicles must be taken out. The relevant taxes such as the standardised consumption tax, the motor vehicle tax and the engine-related insurance tax fall due at the latest at the time of the admission of the vehicle to traffic in Austria.

However, if a vehicle with a foreign registration plate is used, a change of registration must be effected within one month after importing the vehicle to Austria. An extension of the one-month period may be requested, but it must be credibly demonstrated that registration in Austria has not been possible. If the vehicle’s registration is not changed, the vehicle must be exported or the foreign registration plate and registration papers must be handed over to the competent provincial police directorate or district authority.

 

Vehicle users with foreign place of residence: one year period!

Vehicle users with no place of residence nor centre of vital interests in Austria, may use the vehicle with a foreign registration plate (EU member states) for a period of maximum one year from import to Austria. With every import, the one-year period re-commences to run. The vehicle user has to prove that the vehicle does not have a permanent location in Austria.

 

Registration holder vs. vehicle user

If a car is rented, leased, borrowed from a foreign relative or provided by a foreign employer within an employment contract, the vehicle user has to prove that the vehicle does not have a permanent location in Austria. If this is not proven, an Austrian registration must be requested.

 

Penalties for violations

The competent authorities for control and compliance with the regulations regarding vehicles with foreign registration plates are the police, the financial police and the tax authorities. If a control determines that an application for an Austrian registration should have been submitted regarding a vehicle with a foreign registration plate, fines of up to 10,000 EUR, or in case of uncollectibility, imprisonment of up to six weeks may be imposed. Next to the vehicle user, penalties will also be imposed on the registration holder.

 

 

 

 

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Barbara Mechtler Manager, P&O Tax Consulting
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Markus Wimmer Senior Manager, P&O Tax Consulting
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