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Vehicle tax at registration: how the SEPA direct debit mandate works
Why you grant a SEPA direct debit mandate for vehicle tax with every registration, who collects the money, when it is debited and what tax arrears mean.
Updated on 29 October 2026 · 5 min read
Who levies vehicle tax
Vehicle tax (Kfz-Steuer) is a federal tax in Germany. Since 2014, the customs administration has been responsible for it, specifically the main customs offices (Hauptzollämter). The registration authority therefore does not assess the tax, but it forwards the necessary data from your application to customs.
After registration, you receive a tax assessment notice by post from the main customs office. It states the amount of the annual tax and the date of the first debit.
Why the SEPA mandate is mandatory
The German Motor Vehicle Tax Act makes registration conditional on granting a SEPA direct debit mandate. Without a mandate, the vehicle will generally not be registered. Only in justified exceptional cases does the main customs office permit a different method of payment.
In your application at Zulassung24, you enter the IBAN and the account holder for this purpose. The mandate is transmitted to the authority together with the registration application.
If you change banks later, notify the main customs office of the new details directly. After registration, the registration authority is no longer responsible for this.
Account holder and keeper do not have to be the same person
The tax can also be collected from another person's account, for example from your parents' or your spouse's account. The account holder must then consent to the direct debit.
Make sure the account has sufficient funds on the debit date. A returned direct debit leads to fees and, in the worst case, can trigger tax arrears.
What determines the amount of tax
For passenger cars, vehicle tax depends mainly on the type of drive, engine capacity and CO₂ emissions. Fully electric vehicles benefit from time-limited tax exemptions. You can calculate the exact amount for your vehicle with the vehicle tax calculator on the German customs website.
For passenger cars first registered from 2021 onwards, the CO₂ component of the tax rises in stages. Vehicles with high emissions therefore pay significantly more per gram than economical models.
- debited annually in advance as a rule
- shorter intervals possible on request for higher annual amounts
- pro rata refund of overpaid tax on deregistration or change of keeper
Checking the tax assessment
Check the assessment from the main customs office carefully once you receive it. Are the registration number, vehicle data, emission values and start of tax liability correct? Errors are rare, but they have an effect for years, because the tax is calculated on the same basis every year.
You can lodge an objection to an incorrect assessment with the main customs office within one month of its notification. The contact details of the responsible office are on the notice. Neither the registration authority nor Zulassung24 can change the assessment.
Tax arrears block registration
Before each registration, the system checks whether the keeper has any vehicle tax arrears. If so, the authority rejects the application. This also applies to arrears from previous vehicles, even if they were sold or scrapped long ago.
Such arrears can only be settled with the customs administration, not with the registration authority, as the latter does not keep tax accounts. The central vehicle tax information service of German customs can help with questions about your tax account. Once the arrears have been paid, you can submit the application again.
Frequently asked questions
When is vehicle tax debited for the first time?
The date is stated in the tax assessment from the main customs office, which you receive by post some time after registration. The first debit usually covers the period from the day of registration. Subsequent debits then follow on the same reference date.
Can I pay vehicle tax by bank transfer instead?
For registration, the SEPA mandate is the standard. The main customs office only allows other payment methods in justified exceptional cases, which you must clarify directly with customs.
What happens to the tax when I sell the car?
Your tax liability ends when the vehicle is transferred to the buyer. The main customs office refunds overpaid tax pro rata to your account, and the new keeper grants their own mandate.
What happens if a direct debit is returned?
The main customs office then requests the outstanding amount separately, often plus bank charges. If the tax remains unpaid, arrears arise that block later registrations until they are settled.