Draft Amendment to the Motor Vehicle Tax Act

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Members of the National Council of the Slovak Republic have submitted a draft amendment to Act No. 361/2014 Z. z. on Motor Vehicle Tax, the aim of which is to eliminate the excessive tax and fee burden on Slovak road transport undertakings in comparison with neighbouring V4 countries, as well as to reduce the administrative burden.

The draft proposes the following reduction in the motor vehicle tax (hereinafter the “Tax”) imposed on road transport undertakings:

  • a reduction of tax by 50% if the road transport undertaking paid more than 50% of the tax attributable to the vehicle owned by it for the Slovak toll in the previous calendar year;
  • a reduction of tax by the amount of the toll proved to have been paid if the road transport undertaking paid less than 50% but more than 5% of the tax for the Slovak toll in the previous calendar year;
  • road transport undertakings which pay less than 5% of the tax for the Slovak toll for the previous calendar year will not have the tax reduced.

The draft amendment also allows for the termination of the tax obligation on the basis of notification delivered to the tax administrator during the period when a vehicle is not used for business for various reasons (e.g. inoperability, vehicle temporarily not needed, etc.). The current legislation allows for the extinction of the tax obligation only when a vehicle is deregistered at the traffic (police) inspectorate. It would also be possible to report the re-emergence of the tax liability through a notification.

In the notice of termination of the tax liability, the taxpayer will be obliged to indicate, inter alia, the place where the vehicle in question will be parked during the period without tax liability. If the taxpayer provides false information in the notification, he/she is at risk of being charged additional tax in the amount without possible statutory reductions and exemptions.

The law is proposed to enter into effect on 1 January 2024.

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