Changes in The Tax of Motor Vehicles From 1.1.2021

Changes in vehicle tax and travel expenses from 1.1.2021

In order to mitigate the effects of the coronavirus, the amendment to the Motor Vehicle Tax Act introduces a reduction in freight rates and an amendment to the Act on Travel Compensation, which provides for the fixation of food and depreciation of vehicles. See the following lines for more information.

Change in rates for tractors, semi-trailers and commercial vehicles

The main change concerns tractors and semi-trailers for which a lower annual tax rate is introduced. The condition of 'pairing' of tractors and semi-trailers in a articulated vehicle combination for the purposes of applying a lower annual tax rate is also removed.

A new percentage advantage of the annual tax rate for commercial vehicles classified in categories M2, M3, N3 and O4 is introduced. The benefit will already apply to the 2020 tax return.

For passenger cars and ordinary commercial vehicles of category N1, the annual tax rates shall not be changed.

Time limit for submitting the return

The deadline for filing a tax return for 2020 is extended until 31 March 2021.

Payment of advances

The change also affects the payment of advances. Until the end of March 2021, advances on tax for the calendar year 2021 shall not apply. In the case of the anticipated tax for 2021 of between EUR 700 and EUR 8 300, the taxpayer shall pay advances due at the end of the 2nd, 3rd and 4th quarters amounting to one third of the tax forecast.

In the case of an estimated tax for 2021 of more than EUR 8 300, the taxpayer shall pay advances due at the end of each calendar month starting in April 2021 at the rate of one-nineth of the tax envisaged.

Travel expenses

Fixation of travel expenses

Every year, the Ministry of Labour, Social Affairs and Family increases domestic diets and basic compensation for the use of private motor vehicles for business purposes, depending on the increase in restaurant food prices and the increase in prices associated with the operation of motor vehicles.

In the context of taking measures to mitigate the consequences of the coronavirus pandemic, diets and basic allowances will not increase in 2021 and will be valid for the whole of 2021 at the following rates:

Duration of domestic business trip Amount of subsistence allowance (diet)
5 to 12 hours 5,10 €
over 12 to 18 hours 7,60 €
over 18 hours 11,60 €

Finally, we would like to point out that we have mentioned the above changes in a simplified interpretation. When applying a specific provision of the law, we recommend that you always consult a tax advisor in advance.

Mgr. Ing. Ľuboš Čandik
Author of the article
He studied corporate management at the University of Economics and the Faculty of Law in Bratislava. Since 2005, he has worked for several major tax consultancy companies of international focus. It focuses on income tax, VAT, international taxation, tax optimisation, social and health regulations, labour and business law. He has been tax adviser since January 2013. He speaks fluent German and English.

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