Exemption from car tax for special use vehicles

Special use vehicles may have been granted car tax exemption under certain conditions. If the purpose, ownership or structure of the vehicle is changed in such a way that it affects taxes imposed to it, Traficom recovers a part of the tax reduction.

The car tax reduction granted to special use vehicles will expire within a separately prescribed period, i.e. within 36 or 48 months. The expiration of car tax refers to the period during which the vehicle is used in accordance with the tax reduction granted. The expiration is calculated in full calendar months. The amount of the tax reduction to be recovered is reduced for each calendar month that the vehicle has been in use in accordance with the tax reduction.

Veterinary vehicle

The car tax benefit granted to a veterinary vehicle is redeemed in four (4) years. The car tax is considered to be paid after the redemption period.

Examples of changing the purpose of a veterinary vehicle and its tax consequences:

If full car tax has already been paid for the vehicle, or the car tax benefit has been redeemed, the vehicle will not be taxed again following potential changes.
If the veterinary vehicle’s redeemed tax is a van’s reduced tax, you may have to pay car tax for the vehicle following changes to its purpose, structure or ownership.

My vehicle will no longer be used as a veterinary vehicle but the tax benefit has yet to be fully redeemed. My vehicle meets the legal requirements for a car tax reduction granted to a van. I want to change my vehicle to a passenger car. Must I pay car tax after the change?

Yes. If a vehicle’s purpose as a veterinary vehicle ends before the tax has been redeemed, you must pay the unredeemed portion of the tax.

If you have registered the vehicle for the first time after 1 June 2016, you must also pay the car tax consequence following the change of vehicle category.

My vehicle will no longer be used as a veterinary vehicle but the tax benefit has yet to be fully redeemed. My vehicle does not meet the legal requirements for a car tax reduction granted to a van. I want to change my vehicle to a passenger car. Must I pay car tax after the change?

You must only pay the unredeemed portion of the full car tax. No car tax is levied for changing the vehicle to a passenger car.

My vehicle will no longer be used as a veterinary vehicle and the tax benefit has been fully redeemed. I want to use the vehicle privately as a van. Will this lead to any car tax consequences?

Because the vehicle’s tax benefit has been fully redeemed, you do not have to pay car tax for the vehicle. If you change the structure of the vehicle in a way that impacts its taxation, you must pay car tax for the vehicle due to the change in vehicle structure.

If you have registered the vehicle for the first time before 1 June 2016, there will be no car tax consequences due to the change in vehicle structure.

If you have registered the vehicle for the first time on or after 1 June 2016 and the vehicle structure is modified so that the vehicle no longer meets the requirements of the tax class in which it was registered as a veterinary vehicle, you must pay car tax for the vehicle due to the change in vehicle structure.

The inspection station advises on technical questions about vehicles.

An emergency vehicle

An emergency vehicle is a tax-exempt vehicle whose tax benefit is redeemed in four (4) years.

Examples of changing the purpose of an emergency vehicle and its tax consequences

If full car tax has already been paid for the vehicle, or the car tax benefit has been redeemed, the vehicle will not be taxed again following potential changes.
If the emergency vehicle’s redeemed tax is a van’s reduced tax, you may have to pay car tax for the vehicle following changes to its purpose, structure or ownership.

My vehicle will no longer be used as an emergency vehicle but the tax benefit has yet to be fully redeemed. My vehicle meets the legal requirements for a car tax reduction granted to a van. I want to change my vehicle to a passenger car. Must I pay car tax after the change?

Yes. If a vehicle’s purpose as an emergency vehicle ends before the tax has been redeemed, you must pay the unredeemed portion of the tax.

If you have registered the vehicle for the first time on or after 1 June 2016, you must also pay a car tax consequence due to the change of vehicle category.

If you have registered the vehicle for the first time before 1 June 2016, there will be no car tax consequences due to the change in vehicle structure.

My vehicle will no longer be used as an emergency vehicle but the tax benefit has yet to be fully redeemed. My vehicle does not meet the legal requirements for a car tax reduction granted to a van. I want to change my vehicle to a passenger car. Must I pay car tax after the change?

Yes. If a vehicle’s purpose as an emergency vehicle ends before the tax has been redeemed, you must pay the unredeemed portion of the tax.

If, during its use as an emergency vehicle, the vehicle was a full-tax vehicle, no car tax will be charged for the change to a passenger car.

Ambulance

An ambulance is a tax-exempt vehicle whose tax benefit is redeemed in three (3) years.

If the use of the vehicle as an ambulance ends and its vehicle group is changed after the tax benefit has been fully redeemed, there will be no tax consequences due to the change.

Hearse

A hearse is a tax-exempt vehicle whose tax benefit is redeemed in four (4) years.
If the use of the vehicle as a hearse ends and its vehicle group is changed after the tax benefit has been fully redeemed, there will be no tax consequences due to the change.

Car tax refund on the basis of a disability

You may have received a car tax refund from the Tax Administration due to a disability.

Your disability-based car tax refund is redeemed in three (3) years.

The unredeemed portion of the car tax refund will be recovered if:

the recipient of the tax benefit gives up the vehicle
the vehicle’s use changes
the person receiving the car tax refund dies less than three (3) years after the first registration of the vehicle. The estate is responsible for the unredeemed portion of car tax.

The reason why the car tax refund recipient has given up the vehicle or why its use has changed in some other way are irrelevant with regards to the charging of car tax.

You may seek a revised decision from Traficom if the ownership and use of your vehicle is being transferred or has already been transferred to another person who is entitled to a disability-based car tax refund.

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