Since the WLTP-rating came to effect in September, we have received a lot of questions about the subject. We want to share the most updated information to keep you up to date of the situation. Here are the main points:
1. Why was the emissions test changed?
The new test results correspond better to the actual consumption of a vehicle. The previous test became obsolete as the technology and features of vehicles changed.
2. What does the new test mean for passenger cars?
The change concerns all passenger cars in the European Union. Going forward, each car will have an individual rating that is closer to its actual emissions.
3. Will all EU member states adopt the WLTP rating simultaneously?
No. Only Finland and Germany will move over to the WLTP rating on 1 September 2018. Other EU member states will use a calculated NEDC rating until 1 January 2020.
4. What does the new test mean for vans?
The change also applies to all vans, but they will use a stepped system with categories. The categories comprise three groups based on reference mass. For categories II–III, the change will enter into force on 1 September 2019. The reference mass for categories II–III is >1,305 kg.
For exhaust emission regulation purposes, vans are separated into categories according to their reference mass. The reference mass is considered to be the vehicle's operating mass less the driver's mass (75 kg) with 100 kg added. The categories are as follows:
a) category I, reference mass no more than 1,305 kg
b) category II, reference mass more than 1,305 kg, but less than 1,760 kg
c) category III, reference mass more than 1,760 kg.
5. Why was the vehicle tax changed?
The vehicle tax change was made to ensure neutral taxation, as the emission values of the new test will be higher than the previous test's values.
6. When will the change come into effect?
As of 1 September 2018, all cars registered for the first time will have to be WLTP tested. The CO2 emission rating of a car will be confirmed as it leaves the factory, and its vehicle tax will be based on this rating upon the car's first registration.
7. Will vehicle tax automatically use the new rating from 1 September 2018 onwards?
No. There will be a transitional period with the vehicle tax where two tax tables will be used. If a car was ordered prior to 1 September 2018 and a WLTP rating and a calculated NEDC rating ("NEDC 2.0") have been determined for it, but its first registration was after 31 August 2018, then the smaller tax rate of whichever table (new WLTP or old NEDC) will be applied.
8. How will I know which rating a car uses and how its tax is determined?
Your dealership will know if a car has a WLTP rating or not. For cars ordered prior to 1 September 2018, the importer will ensure that the correct tax table is used. To verify the emissions rating used, NEDC or WLTP, you should contact your dealer.
9. How is a car's tax value determined?
The tax value is determined according to the car's gross price, including optional equipment. The total price of a car consists of its untaxed recommended retail price, including optional equipment, and the vehicle tax. The tax value of a car is calculated according to the untaxed recommended retail price of the car at the time of ordering and the vehicle tax in effect at the time of its first registration. Discounts will not affect the car's tax value.
10. How can I verify the tax value of an order?
We at ALD can help you verify the emissions rating from your dealership.
In the NEDC test, only some optional equipment counted towards a vehicle's tax value, so the impact on the final emission rating was marginal. The tax value indicated for your car at the time of the order is hence likely to be very close to its final tax value. The vehicle tax is calculated by using the NEDC emission rating.
The WLTP test is more comprehensive in accounting for the effect of optional equipment on vehicle emissions. The final tax value of a vehicle is only confirmed when it is ready to leave the factory and has received its Certificate of Conformity with all accessories on board. The vehicle tax is calculated by using the WLTP emission rating. Some manufacturers already provide their own calculators to better estimate the emission rating's effect at the time of the order.
11. Where can I check the tax value of my current car?
If you drive a company car leased through us, you can verify your car's tax value from the MyALD portal or by contacting your company's ALD contact person.
12. Has ALD adjusted its car policy in response to the WLTP?
We have immediately raised our emission limits by 22 per cent to keep our car policy effective for our customers in light of the new emission testing procedure. Furthermore, we are continuously monitoring the development of emissions and new vehicle technology in order to keep updating our car policy to be more environmentally friendly.