Amendment to the Motor Vehicle Tax Act with effect from 1. December 2020 is introducing changes in these areas:

  1. adjustment of annual tax rates
  2. the period to file a tax return
  3. payment of advances on motor vehicle tax
  4. new form for tax return

Adjustment for annual tax rates for 2020 will be as follows:

for vehicles of categories M1, N1, N2 and O1 up to O – the adjustment is set depending on the age of the vehicle, as follows

 

  • first 108 calendar days – reduction of annual tax rates ranging from 25% up to 15%
  • from 109 to 144 calendar months, i.e. another 36 calendar months – the annual tax rate according to the annexes to the Motor Vehicle Tax Act shall apply
  • following from 145 to 156 calendar months it shall apply the annual tax rate increased by 10%
  • after 156 calendar months, the applied tax rate will be increased by 20%

for vehicles of categories M2, M3 and N3 – the tax rate is as follows:

  • during 156 calendar months, beginning first month of registering the vehicle the tax rate is decreased from 50% to 10%
  • after 156th calendar month the tax rate will be applied as listed in Annex 1. and annex 2a

for vehicles of category O4:

  • a statutory reduction of the annual tax rate in the same amount of 60% regardless any criterion will be granted

In the calculation of the tax, the mandatory pairing of vehicles in a semi-trailer combination in order to achieve a lower annual tax rate has been removed. The lower annual tax rate is directly deductible from the relevant annex to the law depending on the vehicle weight and number of axles now.

Deadline for filing tax return and tax payment for 2020

The taxpayer is obliged to submit the tax return for the motor vehicle tax to the tax administrator for the tax period of 2020 no later than March 31, 2021. That means the deadline had been prolonged by two months.

If the taxpayer paid advances on motor vehicle tax for 2020, where the advances paid by the taxpayer are lower than the calculated motor vehicle tax for 2020, he is obliged to pay this difference on the same date, i.e. until 31.03.2021.

Payment of advances on motor vehicle tax

Advances on tax will apply as follows:

  1. quarterly advances: the tax payer pays one third of assumed tax and this is always by the end of calendar quarter (which means until 30.06.2021, 30.09.2021.31.12.2021)
  2. monthly advances: the tax payer pays one-month advance as 1/9 of assumed tax and this is always by the end of the calendar month (first time until 30.04.2021).

During the period from 01.01.2021 to 31.03.2021 these advances do not need to be paid at all.