Motor vehicles and road tax obligations

Deadline for submission of a Road tax return for the year 2019 is set on the last day of January. The same deadline applies to the payment of a Road tax liability.

Motor vehicles operators (in most cases motor vehicles owners) has obligation to submit a road tax return and pay road tax liability for the year 2019 for motor vehicles which were registered, operated and used for business in 2019 in the Czech Republic. A motor vehicle registered abroad, or a motor vehicle registered in the Czech Republic but used abroad, is not subject to road tax in the Czech Republic.  On the other hand, trucks or trailers over 3.5 tons registered in the Czech Republic in 2019 are subject to road tax regardless they were used or not in 2019. 

Road tax return shall be submitted also in cases of motor vehicles exempt from the road tax even if the final tax liability is nil. Such motor vehicles are for example some alternative-powered vehicles (e.g. electric, hybrid, NCG, LPG, etc.).

The Road taxpayer is the vehicle operator registered in the vehicle registration certificate. In most cases, the vehicle taxpayer is the owner of the vehicle or, in the case of financial leasing, the person using the vehicle. An employer is the Road taxpayer for a private vehicle used by an employee during business trip for which a travel compensation is paid by the employer to the employee. 

The annual rate is used for the calculation of the road tax. The annual rate is further modified by a set percentage depending on the year of the first registration of the vehicle. In case of private vehicle used during a business trip also daily rate of 25 CZK can be applied. The annual and daily rates cannot be combined.

It is also important to remind the Road tax advance payment obligations during 2020. Road tax advances are paid four times a year and they are due by 15 April 2020, 15 July 2020, 15 October 2020 and 15 December 2020 at the latest. The Road tax advances may be also paid ahead for the whole year. The tax administrator may in justified cases, based on the written request, cancel the obligation to pay road tax advances.