If you have decided to get rid of your old vehicle, it is important to be familiar with the entire procedure, including what happens to the taxes. Many owners worry about whether they will have to continue paying local tax after the car is no longer in use. The truth is that once you scrap the car, the tax on it is also dropped — but only if you follow certain steps and deadlines.

Scrapping a car is done by terminating its registration with the traffic police. Once this is done, they automatically send information to the relevant municipal office, where local tax records are kept. When the information is entered into the system, the car tax stops being charged from the following calendar year.

The tax is charged for the entire year — react in time

Many people do not know that the car tax is determined on an annual basis and is due in full, regardless of when during the year you scrap the car. Therefore, it is wise, if you have decided to remove it from traffic, to do it before December 31. This will avoid being charged a new amount at the beginning of January.

After the registration is terminated, the traffic police will return the large car ticket with the note “Registration Terminated”. It is recommended that you keep it. Although the exchange of information between institutions is automated, sometimes there are delays or errors. If such a document is requested from you by the municipality, you will have proof that everything was done according to the rules.

Car scrapping tax – do you owe money?

There is another important point – you can scrap your car, even if you have debts to the municipality. This is different from selling a car, in which all due taxes must be repaid. In the case of a sale before a notary, a check for debts is mandatory. But when it comes to handing over a car for scrap, this requirement does not apply.

Therefore, if your car is beyond repair and no longer drives, and you also have unpaid taxes, you still have the opportunity to scrap it. You will only continue to owe the amounts already accrued that have accumulated before the termination of the registration.

What is the amount you will receive upon scrapping

In addition to the administrative part, many people are also interested in the financial side. A pleasant surprise for many is that even for an old, faulty car, you can receive money when handing it over for scrap. The purchase price is usually calculated based on the weight of the car and its current condition.

Most recycling companies use a special car scrap calculator, which easily and quickly determines the amount you would receive. These calculators are often available online, which allows you to get an approximate price even without talking to an operator.

It is enough to enter the make, model, year of manufacture and location of the car. Then, if the amount satisfies you, you can directly request a day and time for free transport to the point. Without unnecessary rounding and negotiating, the whole process is transparent and secure. This saves time and nerves and makes scrapping the car far easier and more enjoyable than many people imagine.