Motor Vehicle Duties

Generel information

Motor vehicle duty is a duty that you, as the owner of a vehicle, pay for the use of public roads.

Both private individuals and businesses that own a motor vehicle are required to pay motor vehicle duty.

Certain types of vehicles are exempt from motor vehicle duty.

Conditions

Motor vehicle duty applies to the following motor vehicles:

• Passenger cars

• Motorcycles

• Trucks

• ATVs

• Vans

• Tractors

• Electric vehicles

• Taxis

• Buses not operating on a fixed schedule

• Tank trucks

Vehicles exempt from motor vehicle duty

1. Fire engines.

2. Ambulances and police vehicles.

3. Motor vehicles belonging to diplomatic or consular missions of foreign states, or to members of the staff of such missions who are not Danish citizens. For example, diplomats posted to Greenland who are permanently resident in Greenland.

4. Motor vehicles used for commercial purposes by sheep and reindeer farmers. (This applies if the vehicles are located outside towns and settlements and there are only very few other motor vehicles in the area.)

5. Snowmobiles and construction machinery. (These are not considered motor vehicles for the purposes of motor vehicle duty.)

6. The Government of Greenland, or a body authorised by the Government of Greenland, may grant exemption from motor vehicle duty for vehicles for persons with disabilities, hearses, and motor vehicles used for scheduled bus services operating within towns.

Rates

The amount of motor vehicle duty depends on the weight of the individual vehicle:

Vehicle weight up to 1,000 kg
Duty per six-month period: DKK 3,277 (Total amount per year: DKK 6,554)

Vehicle weight from 1,001 to 1,200 kg
Duty per six-month period: DKK 5,024 (Total amount per year: DKK 10,049)

Vehicle weight from 1,201 to 1,500 kg
Duty per six-month period: DKK 5,373 (Total amount per year: DKK 10,747)

Vehicle weight from 1,501 to 1,800 kg
Duty per six-month period: DKK 7,615 (Total amount per year: DKK 15,231)

Vehicle weight over 1,800 kg
Duty per six-month period: DKK 8,787 (Total amount per year: DKK 17,575)

Motorcycles
Duty per six-month period: DKK 1,770 (Total amount per year: DKK 3,540)

Please note
The annual motor vehicle duty for vehicles powered solely by electricity or hydrogen, as well as plug-in hybrid vehicles that use rechargeable batteries for energy storage, is DKK 6,554. This rate took effect for the first time for the duty period beginning on 1 April 2020.

For smaller four-wheeled (ATVs) or multi-wheeled off-road motor vehicles, the annual motor vehicle duty was reduced from DKK 3,277 to DKK 2,000 with effect from 1 April 2021. The duty is therefore DKK 1,000 per six-month period.

Refunds
The Greenland Tax Agency issues refunds when the owner of a motor vehicle has paid too much motor vehicle duty or, for example, when the motor vehicle was deregistered before the duty period began but the BPS payment had already been processed.

Registration and deregistration of a motor vehicle

As the owner of a motor vehicle, you must go to the police station to register or deregister the vehicle.

The police will process the registration or deregistration and forward the information to the Duties Office at the Greenland Tax Agency. Based on this information, the Duties Office will either begin collecting motor vehicle duty or stop collecting the duty.

Cancellation of automatic payments

When ownership of a vehicle changes, the owner must cancel the automatic payment arrangement through their online banking service or by contacting their bank.

Procedure for collection of motor vehicle duty

The police send registration and deregistration forms to the Greenland Tax Agency for all motor vehicles, including vehicles that are subject to motor vehicle duty and vehicles that are exempt from motor vehicle duty.

Based on the registration and deregistration forms submitted by the police, the Greenland Tax Agency will register the motor vehicle and collect the motor vehicle duty.

When you pay motor vehicle duty, the payment is made to the Greenland Treasury.

Change of ownership of a motor vehicle

A change of ownership does not affect the motor vehicle duty, as it is the owner of the vehicle that changes, not the vehicle itself. This means that the motor vehicle duty follows the vehicle.

For example, if you buy a used car in January, the motor vehicle duty may already have been paid in October. You will therefore not be required to pay motor vehicle duty until 1 April.

The duty has been paid up to and including 31 March by the person who sold you the vehicle, whose name was registered for that motor vehicle duty period.

Seller of a motor vehicle

The Duties Office will review the seller's account with the Duties Office to determine whether the seller has any outstanding debt or credit relating to previous motor vehicle duty periods.

If the seller has outstanding motor vehicle duty debt, the case will be transferred for debt collection, and payment of the outstanding amount will be collected.

Deregistration of a motor vehicle

When a motor vehicle is deregistered, any overpaid motor vehicle duty must be refunded to the owner who deregisters the vehicle. The refund is calculated from the first day of the month following deregistration.

When overpaid motor vehicle duty is refunded, any outstanding debt owed by the owner to public authorities will automatically be offset against the refund. The caseworker will prepare a payment voucher specifying the purpose of the payment.

If the owner of the motor vehicle has outstanding debt relating to a motor vehicle duty period, the case will be transferred for debt collection.

The case transferred for debt collection will include:

• Debtor account statement (the owner's account statement with the Duties Office)

• Copy of the motor vehicle's registration certificate/deregistration certificate

Failure to pay motor vehicle duty

If you do not pay the motor vehicle duty on time, the Duties Office at the Greenland Tax Agency will send you a payment reminder. An additional duty of DKK 500 will be added to the motor vehicle duty payable for your vehicle.

Payment reminders are sent between 15–20 May and 15–20 November.

The payment reminder will state that you have 8 days to pay the motor vehicle duty and the additional duty. It will also state that the police will remove the vehicle's licence plates if the amount is not paid by bank transfer to account 6471 1000842 within the 8-day period.

If you pay the duty within the 8-day period, you must send proof of payment to afgift@nanoq.gl.

If you intend to deregister your vehicle, you must do so before the next six-month motor vehicle duty period begins. If you deregister the vehicle after the start of the next six-month duty period and have not yet paid the motor vehicle duty for the vehicle, you must pay both the amount stated in the payment reminder and the motor vehicle duty for the vehicle.

Removal of the vehicle's licence plates

If the Duties Office has not received payment of the motor vehicle duty within 4 weeks after sending you a payment reminder, the Duties Office will ask the police to remove the licence plates from your vehicle.

The police will normally keep the licence plates for 3–10 days before deregistering the vehicle and destroying the plates. This gives the owner an opportunity to resolve the matter and, where applicable, pay the motor vehicle duty and the additional duty so that the police can return the licence plates.

Please note

If, as the vehicle owner, you pay the outstanding amount within 8 days of the payment reminder being sent to you, you must send proof of payment of the motor vehicle duty to the Greenland Tax Agency. The Greenland Tax Agency can then ask the police to cancel the request to remove the licence plates.

Deadlines

You must pay motor vehicle duty twice a year, every six months:

Please note
If the payment deadline falls on a public holiday, the deadline is extended to the next working day.

First-time vehicle owners
If you are a first-time vehicle owner, you must pay the motor vehicle duty by bank transfer to account 6471 1000842. Enter the vehicle's licence plate number (e.g. GLXXXXX or GRXXXXX) as the payment reference.

Existing vehicle owners
The Greenland Tax Agency will send you a payment request in the form of a Betalingsservice (BS) payment slip (FI payment slip), stating the amount of motor vehicle duty payable. You can pay the motor vehicle duty through your online banking service or through your bank.

If you have set up a Betalingsservice (BS) agreement through your online banking service, the motor vehicle duty will be paid automatically from your bank account. Betalingsservice will notify you of the amount to be paid.

Appeals

The Tax Council considers appeals against decisions made by the Greenland Tax Agency in cases concerning motor vehicle duty.

If you wish to appeal a decision, you must submit a written appeal to the Tax Council, stating the reasons for your appeal.

Your appeal must include the following documents:

1. The decision you are appealing

2. The statement of the case that was sent to you, if a statement of the case was prepared

3. Any documents you wish to submit as supporting documentation

You can send your appeal to:

The Tax Council
Ministry of Finance
P.O. Box 1605
3900 Nuuk
oed@nanoq.gl