Estonia to Implement New Motor Vehicle Tax, Projected to Yield €120M Annually 

The tax, divided into a registration fee and an annual payment, is set to be implemented from July 1, 2024.


The Ministry of Finance in Estonia is set to implement a new motor vehicle tax that is estimated to bring approximately €120 million per year to the nation’s treasury. This amount will be almost equally divided between a registration tax and an annual tax. The Ministry has suggested two approaches for this tax: Model A, which evaluates the total environmental footprint of a vehicle, encompassing its production, usage, and disposal phases, and Model B, focusing solely on the CO2 emissions generated during the vehicle’s operational phase. The tax will be levied on all types of vehicles, such as vans (up to 3,500 kg), passenger cars, and motorcycles, with the obligation to pay resting on the owner or lessee. The deadline for the annual tax payment is set as February 15th, and the owner of the vehicle on the first day of the taxation year, according to the Traffic Register, will be deemed the taxpayer. If the vehicle changes hands, the tax is neither refundable nor transferable, but its proportional value can be considered in the sales transaction. The vehicle must pay the registration tax before its entry in the Traffic Register. The tax policy is scheduled to commence on July 1, 2024, and the initial annual tax will be due in August 2024 for a six-month period. 

Source: news.postimees.ee

Jakub Warzecha

Creative copywriter, archaeologist. Interested in history, technology and military matters. Specializes in marketing communications and application architecture design.

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