The Tax and Customs Board (ETCB) asks people to be patient. The Act promulgated by the President enters into force after its publication in the Riigi Teataja. Tax reductions can be calculated by the ETCB once the Act has entered into force.
Tax payers themselves do not have to do anything else themselves in order to receive the tax reduction. “The ETCB will calculate the tax reduction automatically on the basis of the data in the population register. In order to do this, we will invalidate the previously issued motor vehicle tax notices and issue new ones that include the tax reduction,” said Madis Laas, Head of the ETCB's Income Tax Department.
“As soon as the reductions have been taken into account, we will inform you via our website and the media. We are working to ensure that tax reductions are calculated before the due date for the payment of the second part of motor vehicle tax on 15 December,” said Laas.
The ETCB will start calculating the annual fee reductions as soon as the Act enters into force. “If the amount of the tax reduction covers the entire previous tax liability, we will invalidate the tax notice and will not issue a new one. We will issue new tax notices only if a parent still has a reduced tax liability,” explained Avely Raid-Lelov, Service Owner at the ETCB’s Income Tax Department.
The part of the annual tax which has been overpaid due to the tax reduction received will be refunded by the ETCB to taxpayers’ prepayment accounts in the e-services environment e-MTA. Each person can request that the refunded money be transferred to their bank account or they can leave it on the prepayment account to cover other future obligations.
The tax liability calculated on vehicles that have been deleted from the motor register (for example, vehicles destroyed, demolished, or transferred abroad) or declared wanted by the Police and Border Guard Board will be recalculated on the basis of the data from the Transport Administration's motor register after the Act enters into force. The tax liability for these vehicles is reduced until the date of deletion of the vehicle from the motor register. In these cases, the ETCB automatically shortens the tax period on the basis of the data in the motor register.
After the Act has entered into force and tax reductions have been calculated, new tax notices will become available in the e-services environment e-MTA.
In order to benefit from the tax reduction for families with children, taxpayer must fulfil two conditions:
- the taxpayer must have full custody of at least one child under the age of 19; If there are several parents with custody rights in a family with children, the tax reduction amount is divided equally between the parents. The reduction is granted to parents with full custody of a child or guardians who are natural persons.
- the tax payer is the owner or authorised user of at least one passenger car or minibus. The reduction concerns only vehicles of categories M1 and N1.
