Shrnutí: Environmental tax, eco-fee, eco-tax… When searching for a used car online, you’ll see these terms all too often. And they usually mean one thing: you’ll have to add a few thousand extra to the price of the car. In a different context, however, there’s also talk of environmental taxes on electricity, gas, or solid fuels, which mainly affect energy suppliers.
In this article, we’ll clearly explain exactly what an environmental tax means under Czech law and what the difference is between environmental taxes on energy and the environmental fee for cars. You’ll learn when the environmental tax on cars is due, when it isn’t, and who is eligible for statutory exemptions.
The term “environmental tax” is used in two contexts under Czech law:
The Ministry of the Environment explicitly states that in the Czech Republic, environmental taxes primarily refer to energy taxes —the solid fuel tax, the natural gas tax, and the electricity tax. These taxes were introduced through the transposition of the European Directive on the Taxation of Energy Products and Electricity and have been part of our tax system since 2008. At the same time, however, in everyday language (and in car advertisements), the term “eco-tax” refers to an eco-fee for older cars, which is paid based on the EURO emissions standard.
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As part of the environmental tax reform, three environmental taxes were introduced in 2008:
These taxes are primarily governed by the Act on the Stabilization of Public Budgets, which specifies in separate sections who is liable for the tax, how the tax base is determined, what the tax rate is, when the tax liability arises, and under what circumstances a transaction may be exempt from the tax.
For ordinary households and small business owners, the most important point is that the payers of environmental taxes on energy are generally the suppliers of electricity, gas, or coal, not the end customer. Ordinary consumers do not file any tax returns for these environmental taxes, because the tax is already included in the price of energy shown on your bill.
As a result, we all end up paying environmental taxes, but we don’t deal with them directly—they are “hidden” in the unit price per kilowatt-hour, cubic meter, or metric ton. From the perspective of the average person, the environmental tax on cars—which you pay directly and as a one-time fee, and which can significantly strain your budget when purchasing an older vehicle—is therefore much more important. That is why we will focus on it in this article.
The so-called environmental tax on cars is referred to in the law as an emissions fee. The obligation to pay the fee may arise upon registration of a vehicle in category M1 or N1 in the vehicle registry, upon registration of a change in ownership, or upon registration of a change in operator. However, the obligation to pay the fee does not arise again for the same vehicle if it has already been incurred by the taxpayer, who was not exempt from the emissions fee.
The purpose is not to penalize the purchase of an old car—even though it often appears that way—but rather to provide an economic incentive: the government seeks to discourage the operation of the most polluting vehicles while simultaneously promoting the renewal of the vehicle fleet toward newer and more fuel-efficient cars.
The emissions fee is not a recurring tax paid annually. The obligation to pay arises upon filing an application to register a vehicle in the vehicle registry, to register a change of ownership, or to register a change of operator.
However, it is not simply the case that the emissions fee is always paid upon the “first transfer after 2009.” The decisive factor is whether a fee obligation for the vehicle in question has already arisen for a taxpayer who was not exempt from the fee. If such an obligation has already arisen, the fee is not paid again upon subsequent registration.
However, if the previous registration was made by an exempt applicant—for example, in the case of a transfer of a vehicle between close relatives—the obligation to pay the fee may arise upon a subsequent registration where the conditions for exemption are no longer met.
In the case of a gift, sale, or other transfer of a vehicle between close relatives, the applicant is exempt from the emission fee. In the case of a transfer between individuals who are not close relatives, the form of the contract itself is not decisive. Therefore, the fee may also apply in the case of a gift if the other statutory conditions are met.
Are you planning to buy a car? Read on to find out what mistakes to watch out for in a car purchase agreement.
EURO emission standards are European technical regulations that specify the maximum amounts of pollutants a vehicle is allowed to emit into the air. These pollutants mainly include carbon monoxide (CO), nitrogen oxides (NOx), unburned hydrocarbons (HC), and, for diesel engines, particulate matter (soot). Each new EURO standard is stricter than the previous one—the goal is to ensure that newly manufactured cars gradually become cleaner and have a lower environmental impact.
It is important to note that the emissions standard is not determined based on the year of manufacture, but rather on the vehicle’s type approval. This means that, at the time of a model’s type approval, the manufacturer demonstrates that the car meets, for example, EURO 2 or EURO 3. This information then appears in the vehicle registration certificate —either directly as “EURO 1, EURO 2…,” or in the form of a European directive code (e.g., “96/69/EC,” “98/69/EC,” etc.), which corresponds to a specific emission class. Simply put, the EURO standard is a characteristic of the car’s design, not something that changes based on how much the car is driven or how often it is serviced.
The amount of the eco-tax is determined precisely by which emission class your car falls into:
But what exactly do “EURO 0, 1, 2, 3…” mean in practice?
EURO 0 refers to cars that do not meet any of the EURO emission standards —typically older vehicles that were type-approved before the first European emission limits were introduced, or for which no emission standard is listed in the vehicle registration certificate. For such vehicles, the government assumes they are the most polluting, and therefore the environmental tax is the highest— 10,000 CZK.
EURO 1 represents the first generation of emissions standards, which already required certain limits on the amount of pollutants in exhaust gases. In practice, this category includes some older gasoline and diesel cars from the 1990s. They have better emissions than EURO 0 vehicles, but from today’s perspective, they are still relatively polluting cars. Therefore, the environmental tax for EURO 1 is lower than for EURO 0, but still significant— 5,000 Kč.
EURO 2 means that the car has already met the second stage of stricter emission limits. Compared to EURO 1, these are cleaner vehicles with more modern engines and reduced emissions. Nevertheless, they still belong to an older generation of vehicles that lack many of the safety and environmental features found in newer models. For this reason, the environmental tax for EURO 2 is 3,000 Kč —a compromise between pollution levels and the incentive to renew the vehicle fleet.
EURO 3 marks a major turning point. Starting with this standard, cars meet much stricter requirements; they often feature more sophisticated engine management systems, catalytic converters, and improved filtration of pollutants. From the government’s perspective, such a car is no longer considered environmentally problematic to the extent that it would warrant a one-time eco-tax. Therefore, no eco-tax is payable.
To put it simply: if your car does not meet any EURO standard (EURO 0), you’ll pay 10,000 CZK upon initial registration or transfer of ownership. For EURO 1, expect to pay 5,000 CZK; for EURO 2, 3,000 CZK. However, if your car meets the EURO 3 emissions standard or higher, the environmental tax is zero —from an environmental tax perspective, you’re in the same position as if you were buying a brand-new car.
In addition to their purely fiscal purpose, environmental taxes also serve an incentive function—they are intended to make behaviors that are more harmful to the environment more expensive and, conversely, to favor more environmentally friendly alternatives. While the primary goal of traditional taxes (VAT, income tax) is to raise revenue for the budget, environmental taxes are explicitly designed to influence taxpayer behavior (for example, by encouraging lower energy consumption or the choice of cleaner cars).
The environmental tax is a one-time fee levied upon the initial registration or first transfer of ownership of an older vehicle that does not meet current emissions standards—it is an “entry-level” measure related to vehicle emissions. Road tax, on the other hand, is a recurring (annual) tax linked to the use of a vehicle for business purposes. For many passenger cars, road tax will no longer apply starting in 2022, while the environmental tax for older emission classes (EURO 0–2) remains unchanged.
From the agency’s perspective, the fee is paid by the person submitting the application for vehicle registration or transfer—typically the new owner. That person must provide proof of payment when the change is entered into the registry. However, you can of course agree in your contract that the seller will actually pay the amount (for example, by offering a discount on the purchase price or by paying the fee in advance). The authorities, however, always require that fee to be paid by the person to whom the vehicle is being transferred.
Yes, the obligation to pay the fee may arise even with a simple change in the vehicle operator, even if the owner remains the same. The law expressly stipulates that the obligation to pay the fee arises upon filing an application to register a change in the operator of a vehicle in category M1 or N1.
However, the fee is not payable if a fee obligation has already arisen for that vehicle with respect to a taxpayer who was not exempt, or if the vehicle or the specific taxpayer is exempt from the emissions fee.
To find out if the eco-tax applies to your car, just follow a few simple steps. It’s not rocket science, but you’ll need to refer to your vehicle registration certificate and correctly interpret the EURO emissions standard:
The first step is to determine which EURO emission standard your car meets. The most reliable source is always the vehicle registration certificate (Part II). The emission standard is usually listed in section 16 as an emission limit, or in the field labeled “EU No. / V.9.”
For some vehicles, you’ll find the designation “EURO 1,” “EURO 2,” or “EURO 3” listed directly. In other cases, however, the vehicle registration certificate contains only the code of the European directive, such as “1999/102/EC” or “2003/76/EC.” In such cases, you’ll need to look up the emission class in a table based on this code.
If you do not have the physical vehicle registration certificate on hand, there are other options. The emissions standard can often be looked up on the Transportation Portal after logging in with your electronic ID. Specialized websites such as dataovozidlech.cz can also be helpful; after entering the VIN, you’ll receive technical data about the vehicle. Commercial databases (such as Cebia) also offer detailed vehicle specifications, including the emission class, upon entering the VIN.
Read about how to check a car using its VIN.
The mere fact that the vehicle has been transferred or otherwise registered in the past does not necessarily mean that the emissions fee issue has been definitively resolved for the future. The decisive factor is whether a fee obligation has previously arisen for the vehicle on the part of a person who was not exempt from the fee.
It is advisable to verify this in the Motor Vehicle Registry or, if necessary, directly at the registration office. A record of payment of the emissions fee generally confirms that the fee will not be due again for that vehicle. However, the absence of such a record does not in itself mean that the fee will automatically become due upon the current registration. It is always necessary to also assess the vehicle’s emissions category and any potential exemptions for the vehicle or the applicant.
If the vehicle falls into the EURO 0, EURO 1, or EURO 2, and no fee obligation has yet arisen for a non-exempt taxpayer, and at the same time neither the vehicle nor the applicant is subject to any statutory exemption, the amount of the emissions fee is determined according to the following table:
In practice, therefore, you simply need to cross-reference two pieces of information: your car’s emissions standard and the table above.
We’ll draft a sales contract for movable property for you, or review an existing one. We’ll handle everything quickly and flawlessly for a fixed price. We can complete the process within 3 days anywhere in the Czech Republic. You don’t have to worry about a thing, and you can pay only after the service has been provided.
The final step, which many people overlook, is to factor the eco-tax into the actual total price of the car. When choosing a car from a classified ad, we recommend that you always add any applicable eco-tax to the listed sales price if you know the car falls into the EURO 0–2 emissions class and the eco-tax has not yet been paid.
The difference can be quite significant. For a car selling for 25,000 CZK, for example, a tax of 10,000 CZK can account for nearly half the purchase price. In such cases, you need to consider whether the purchase is truly worth it.
In other words: the environmental tax on a car is part of the car’s actual price, even though you usually won’t see it listed in the ad. Anyone who ignores it when calculating costs is often in for an unpleasant surprise at the vehicle registry.
There are several exceptions where the environmental tax on cars is not payable, even if your car would otherwise fall into a category subject to the emissions-based fee. These are situations where the legislature does not want the fee to be a barrier in socially sensitive or specific cases:
Holders of ZTP and ZTP/P cards enjoy significant benefits regarding the environmental tax. If a vehicle is registered to a person with a ZTP or ZTP/P card, the environmental tax is not payable, even if the car would otherwise fall into the EURO 0–2 emission classes.
The emissions fee is not payable if the vehicle is registered in the vehicle registry as a result of inheritance or a bequest, a transfer between close relatives, or the dissolution of joint marital property.
The exemption for transfers between close relatives applies to both transfers without consideration—such as a gift—and transfers for consideration—such as the sale of a vehicle. This is because the law does not distinguish based on the type of contract under which the transfer takes place. The decisive factor is whether the transferor and the transferee are close relatives. Close relatives include, in particular, relatives in the direct line—such as parents, children, and grandparents—as well as siblings and spouses. Depending on the circumstances, close relatives may also include other persons in a family or similar relationship who meet the conditions of Section 22 of the Civil Code.
The exemption applies only to the specific applicant and the specific registration. If the vehicle is subsequently transferred to a person who is not exempt from the fee, a fee obligation may arise if such an obligation has not yet arisen for the vehicle with respect to a taxpayer who was not exempt.
Historic vehicles—that is, vehicles listed in the register of historic vehicles and bearing the distinctive green classic car license plates—constitute a separate category. No environmental tax is paid on these cars, even though, from a technical standpoint, their emissions would often correspond to the EURO 0 or EURO 1 emission classes.
The reason is clear: classic cars are not typically driven daily; they are more of a hobby and their value lies in their cultural and historical significance, not in practical transportation. The law therefore exempts these vehicles from the environmental tax.
The environmental tax does not apply to all vehicles, but only to categories M1 and N1 —that is, passenger cars and light commercial vehicles weighing up to 3.5 metric tons. It follows that motorcycles, certain specialized work vehicles, and trucks over 3.5 metric tons are not subject to the environmental tax.
Other fees and taxes apply to these vehicles (such as road tax), but the environmental tax on cars, as you know it from standard passenger cars, does not apply to them.
The environmental tax is paid by the person applying to register the vehicle, which is typically the buyer of a used car. The environmental tax is paid directly at the municipal office with extended jurisdiction (traffic inspectorate, vehicle registry), along with other fees associated with the transfer of ownership. Without payment of the environmental tax, the office will not complete the vehicle registration—so this is not something that can be “paid later” or circumvented.
In practice, this works as follows: first, you finalize the purchase (or other) contract with the seller. Then, as the buyer, you go to the vehicle registration office with the necessary documents. Typically, you will need:
If the applicant is exempt—for example, because the transfer is between close relatives—the emissions fee is not paid at the time of registration. However, such an exempted transfer does not in itself mean that the fee cannot be applied to the same vehicle during a subsequent registration that is not exempt.
At the same time, the office will inform you of any other fees—typically the registration fee, the fee for issuing a new registration certificate, or, if applicable, new license plates. You will then pay the total amount at the office’s cashier’s desk or directly at the service counter.
After the environmental tax is paid, the office will process the change of ownership or the vehicle’s initial registration and will also add a note regarding the payment of the environmental tax to the vehicle registration certificate. From this point on, the environmental tax will not be payable again for subsequent transfers of the same vehicle.
A common question is how the environmental tax relates to the tax return. Here, it is necessary to distinguish between two situations—that of an ordinary non-businessperson and that of an entrepreneur or a company.
For an individual who buys a car for personal use, the situation is simple: the environmental tax is a one-time registration fee and is not listed separately anywhere on the tax return. You pay it at the tax office, and that’s the end of it—from an income tax perspective, you don’t need to worry about it at all.
The situation is different for self-employed individuals and businesses that classify the car as a business asset. In such cases, the environmental tax is generally included in the vehicle’s acquisition cost —along with registration fees, shipping, the registration fee, and other costs associated with purchasing the car.
This total purchase price is then depreciated over time according to tax depreciation rules, so the tax is reflected in tax-deductible expenses gradually, rather than as a one-time expense. Therefore, it does not appear as a separate “environmental tax” line item on the tax return but is included in the vehicle’s depreciation or acquisition costs.
The emissions fee applies to vehicles in categories M1 and N1 that do not meet any EURO emissions standard or meet only the EURO 1 or EURO 2 standard. The obligation to pay the fee may arise upon registration of the vehicle in the motor vehicle registry, upon registration of a change of owner, or upon registration of a change of operator. The fee amounts to 10,000 CZK for vehicles that do not meet the EURO 1 limits, 5,000 CZK for vehicles that meet EURO 1, and 3,000 CZK for vehicles that meet EURO 2.
The obligation to pay the fee does not arise again for the same vehicle if it has already arisen for a taxpayer who was not exempt from the fee. The law also provides for a number of exemptions. Among other things, the emissions fee is not payable upon acquisition of a vehicle through inheritance or bequest, upon transfer of a vehicle between close relatives, or upon registration resulting from the dissolution of joint marital property. The exemption applies, for example, to the gifting or sale of a vehicle between a parent and a child, between siblings, or between spouses.
Ideally, the seller will let you look at the vehicle registration certificate—there you can find the emissions standard and any record of the fee payment. If the vehicle registration certificate is not available, you can at least preliminarily determine the emissions class based on the VIN code using available databases (such as commercial services or the Transportation Portal) and estimate the amount of any potential eco-tax accordingly. However, always insist on seeing the original vehicle documents before signing the contract.
If it is not clear from the available documents that the registration fee has been paid, it is advisable to verify the status directly in the vehicle registry or at the registration office. The mere absence of a record does not mean that the obligation to pay the fee automatically “passes” from the seller to the buyer.
The new owner or operator is liable for the fee only if the registration is one specified by law, no fee liability has yet arisen for a non-exempt taxpayer with respect to the vehicle, and, at the same time, no exemption applies to the vehicle or the applicant. In the case of a transfer between related parties, the applicant is exempt from the emissions fee even if the fee has not yet been paid for the vehicle.
You should include the administrative fees for vehicle registration and transfer, any new liability insurance, and, if applicable, collision insurance in the total price of the car. You should also factor in the costs of the vehicle inspection and emissions test if they are about to expire, as well as the first major service—including an oil change, timing belt replacement, brake service, and replacement of other operating fluids. On top of that, you may also need to factor in the cost of repairing any defects found during the vehicle inspection, such as rust, worn-out tires, or a damaged exhaust system.
No, you generally don’t pay the environmental tax in advance by bank transfer. It’s paid directly as part of the administrative procedure at the vehicle registry—either at the office’s cashier’s desk or at the service counter, where they’ll calculate the fee for you. Most offices now accept card payments, but this isn’t guaranteed everywhere, so it’s a good idea to bring cash as well.
We will draw up a contract for the purchase of movable property for you, or check the existing one. We will handle everything quickly and flawlessly, for a predetermined price. We can do it within 3 days and within the whole country. You do not worry about anything and you can pay only after the service is provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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