January 28, 2022

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What do you want to know about car taxes?

What do you want to know about car taxes?

The tax liability for commercial vehicle use is slowly approaching. The deadline to file your tax return for the current calendar year is January 31, 2022. So let’s take a closer look at who this obligation applies to, what it all covers and what we shouldn’t forget.

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Vehicle used for work

First of all, it is important to realize Persons and vehicles are bound by this obligation by law. It belongs to the category of vehicles for which tax return is required for the year 2021 Any vehicle of class M, N, O or L., Any one It is also used for commercial purposes. This also applies to those cars that were used for this purpose, even if only part of the calendar year. Vehicle owners will find information about the class v Vehicle registration certificate.

Who are the people obligated to pay tax?

  • A natural or legal person registered as a holder of the technical card.
  • An employer who pays an employee travel allowances to use a vehicle that is not used for commercial purposes.
  • The natural or legal person who uses the vehicle for commercial purposes, the person who died, disappeared or was canceled is registered as the owner of the vehicle.
  • A natural or legal person using a vehicle A person who does not use the vehicle for commercial purposes is registered in his document as the vehicle holder.
  • The natural or legal person whose organizational unit is registered in the document as the vehicle holder.

Electric vehicle tax is not payable

annual tax rate Provides for the Automobile Tax Law, which distinguishes separately for passenger vehicles and commercial vehicles By following the tax base. In calculating the same tax liability is necessary Set the tax rate first According to the number of months since the month the first vehicle was registered in Slovakia. The only exceptions are O4 commercial vehicles, on which the annual tax rate will be reduced at a flat rate of 60%, regardless of the age of the vehicle.

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The law also takes into account the environmental aspect of vehicles. This means that a later adjusted tax rate is possible then Reduced by 50% depending on the type of vehicle engine If it These are hybrid cars and hybrid electric carsand vehicles powered by compressed or liquefied natural gas (CNG or LNG) and hydrogen-powered vehicles. Hybrid vehicles have two power sources, the internal combustion engine and the electric motor.

The most useful However, the tax rate belongs to electric carsThe law sets a zero annual tax rate. “This is the class of vehicles lam, m a nIts only source of energy is electricity, and no tax is paid on it. number These vehicles are also reported on the tax return. The tax base is the engine power in kilowatts and The annual tax rate is zero,” explains Katerina Balugova, director of taxation at the Accace Slovakia law firm.

Origin and termination of tax liability

Tax liability for motor vehicle tax has been linked The first day of the month in which the vehicle was used for commercial purposes.

Business use in practice means:

  • Actual use of the vehicle for commercial purposes,
  • car bills,
  • registration of the vehicle in the tax records,
  • Application of expenses related to the use of the vehicle,
  • Use of an employee’s vehicle for commercial purposes, or a vehicle that has another person in the technical certificate as its holder.

On the contrary, tax liability ceases on the last day of the month, where, for example, the car was removed or temporarily removed from the registry, the business was terminated or suspended, a certificate of the stolen car was issued by the police authorities or the owner of the car changed. The date of origin and termination of the tax obligation is mentioned in the tax return.

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If it occurs during the year Facts about the occurrence or termination of a tax obligationFor example, an entrepreneur buys or sells a personal car during the year, which means He uses it to work only part of the year, pays taxes Just relativeK. Balogová explains.

tax rate Calculated as one-twelfth of the annual tax rate or the adjusted annual tax rate; And Number of calendar months, in which was used vehicle for business.

According to her, if a businessman Stop using the car registered in Slovakia due to its repair, in this case the non-use of the vehicle will not stop the business itself and The vehicle is also taxable during repair.

An example of a car tax calculation

“During its tenure, the company purchased a new M1 with an elevator in 2021, for example on July 15, 2021. Engine Capacity 1500 cc3. The vehicle is registered in the Slovak Republic. The company, as the new owner of the vehicle, assumes the tax liability on July 1, 2021. The origin or termination of the company’s tax liability They do not have to notify the tax official separately, but the date of origin or expiration of the tax obligation Countries in the tax return for the relevant tax periodK. Balogová describes.

The annual tax rate is determined on the basis of Appendix No. 1 of the Automobile Tax Code. Whereas, in the given example, the M1-class car has an engine displacement of 1500 cm3, based on an annual tax rate of 115 euros. “We will also adjust it according to the time elapsed since the first registration of the vehicle. According to Article 7/1 a) for M1 vehicles, the annual tax rate is reduced by 25% to 86.25 euros during the first 36 months”, explains the expert.

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In the example, if it was a hybrid, the adjusted annual rate would be halved to €43.12. Finally, the fact that the car was in calendar year 2021 is taken into account Only used for six months (from July to December 2021). The final amount of tax for 2021 for the particular vehicle It is paid in proportion, i.e. €21.56 based on the company’s 2021 tax return. The tax return is submitted by January 31, 2022 and tax is also due during that period. The tax, the proportional part of the tax, as well as the reduced or increased annual tax rate in accordance with paragraph 7 shall be, Rounded down to euro cents.

The resulting tax depends on the advances paid

when calculating Final tax obligation It is also necessary to take into account tax advances, which are determined on the basis of the expected tax amount for the next tax period. It can be either Quarterly, monthly or zero advances, as applicable.

Advance Limitations

  • If the estimated tax does not exceed 700 euros, the taxpayer does not pay the tax advance.
  • If the estimated tax exceeds 700 euros and does not exceed 8,300 euros, the taxpayer pays quarterly tax advances.
  • If the estimated tax is above 8,300 euros, the taxpayer pays monthly tax advances.

In the tax return for 2021Which is the deadline for applications Until January 31, 2022, the taxpayer has calculated the final amount of tax for 2021, that is, the difference between the amount of the final tax and the amount of tax advances already paid,” adds K.

if it was The final tax amount is higher than the amount of advances paid, the taxpayer pays the difference. If the final tax amount is less, the taxpayer will bear an overpayment and can Ask the tax officer for a refund.