Taxis that have been registered for the first time before 1 July 2022 may be subject to reduced car tax under certain conditions. Accessible taxis and minibuses registered for school and day-care transport may be fully exempt from car tax under certain conditions. If a vehicle or its use no longer meets the tax benefit requirements, e.g. if you sell the taxi or stop its activities subject to licence before 36 months have passed since the vehicle’s registration for activities subject to licence, Traficom will recover part of the tax benefit.
A car tax benefit granted to vehicles is redeemed either in 36 or 48 months. The redemption of car tax means the period during which the vehicle is used in compliance with the tax benefit requirements. The redemption period is calculated as full calendar months. If the vehicle no longer meets the tax benefit requirements, part of the tax benefit must be paid back. The amount of tax benefit recovered is reduced per each starting calendar month during which the vehicle has been used in compliance with the tax benefit requirements.
You can find more information about tax benefits granted to taxis on the Tax Administration’s website.
No car tax will be recovered if
- the vehicle has been used for activities subject to licence for at least 36 months, or
- you sell the vehicle and it is continued to be used for activities subject to licence within one (1) month of the change of ownership.
Car tax benefit will be recovered if
- you sell the taxi within 36 months and it is not continued to be used for activities subject to licence, or
- you stop using the taxi for activities subject to licence before 36 months have passed since its registration
- a vehicle decommissioned due to damage is registered again for other activities subject to licence.