Payment assessment notice

What it means

A payment assessment is a decision by the tax authority setting the amount of a tax or fee and the deadline for paying it. It is typically issued by a municipality for property tax, dog tax or the municipal waste fee, that is for local taxes.

Unlike income tax or VAT, where the taxpayer calculates the tax in a return, here the authority does the calculation. A business files a property tax return only when the obligation arises or changes, and the municipality then sends it an assessment for the current amount each year.

The term is also used for other decisions by which an authority imposes a payment, such as additional tax after an audit, also called an assessment decision. What they share is that the duty to pay arises on delivery of the decision, not on filing a return.

How it works in practice

For companies owning property in several municipalities, we keep an overview of assessments and due dates. Each municipality has its own rates, deadlines and bank accounts, and assessments arrive in different months, so without a register one is easily missed.

When an assessment arrives, we check the area of land and buildings, their use and any exemptions applied. An error in the data can repeat every year, so it is worth catching in the first assessment after a purchase or change of use.

Larger amounts can often be paid in instalments if the assessment or the municipality’s generally binding regulation allows it. If the company lacks the funds for a lump sum, it can ask for a payment schedule before the due date.

What to watch out for

An appeal against a payment assessment can be lodged within a short period from delivery. After that it becomes final and correcting an error is much harder, so it should be checked immediately, not when paying.

An assessment counts as delivered even if the company does not collect it, for example when it sits unopened in the electronic mailbox. Not knowing is no excuse, and the municipality will charge late-payment interest.