Amendment to the Vehicle tax act as of 1 December 2020

The amendment was drafted in following to the request of road hauliers to reduce VT rate. The aim of the amendment is to improve the business environment of entrepreneurs operating truck and bus transport by removing the pairing of the trailer set and introducing new lower annual tax rates. 

In this connection, from the tax period 2020, a lower annual rate for trailer and semi-trailers will be used than that before the amendment to the act. Following the mentioned, a separate Annex no. 1a is introduced. 

In addition to the introduction of a new annex no. 1a, with annual rates for trailer and semi-trailer vehicles, new percentage reductions of the annual tax rate are introduced for all commercial vehicles classified in categories M2, M3 and N3. For vehicles of category O4, a flat rate adjustment of the tax rate is introduced regardless of the age of the vehicle. 

Moreover, the annual tax rates for vehicles of categories L, M1, N1, N2, O1 to O3 are reduced.

The annual tax rate for vehicles of categories L, M1, N1, N2, O1 to O3 is: 

1. reduced by 25% during the first 36 calendar months, starting from the month of the first registration of the vehicle,
2. reduced by 20% over the next 36 calendar months,
3. reduced by 15% over the next 36 calendar months,
4. apply during the following 36 calendar months after the sum of the number of calendar months according to points 1. to 3.,
5. increase by 10% during the next 12 calendar months after the sum of the number of calendar months according to points 1. to 4.,
6. increase by 20% after the sum of the number of calendar months according to points 1. to 5.

The annual tax rate for commercial vehicles of categories M2, M3 and N3 is:

1. reduced by 50% during the first 36 calendar months, starting from the month of the first registration of the vehicle,
2. reduced by 40% over the next 36 calendar months,
3. reduced by 30% over the next 36 calendar months,
4. reduced by 20% during the following 36 calendar months after the end of the sum of the number of calendar months according to points 1. to 3.,
5. reduced by 10% during the following 12 calendar months after the sum of the number of calendar months according to points 1. to 4.,
6. apply after the sum of the number of calendar months according to points 1. to 5.

The annual tax rate will be reduced by 60% for commercial vehicles of category O4.

Transitional regulation

Following the transitional regulation pursuant to §15c to the amendment effective from 1 December 2020, it was stipulated that the annual tax rates specified in Annex no. 1a will be used for the first time when filing a tax return for the tax period of 2020, on the new template of the tax return, which can be found here under contribution no. 17.

The tax return for tax periods that begin not earlier than 1 January 2020 and end not later than 28 February 2021 shall be filed by the taxpayer by 31 March 2021, at the latest (respective deadline for filing is currently applies only for the 2020 tax period).

Advances on VT for the tax period of 2021 payable by the deadline for filing the tax return from 1 January 2021 to 31 March 2021 will be not paid by the taxpayer. After the deadline for filing the tax return, the taxpayer pays quarterly advances due by the end of the second, third and fourth calendar quarters in the amount of one third of the estimated tax or monthly advances due by the end of the fourth to twelfth calendar months in the amount of one ninth of the estimated tax.