The way Portugal charges Vehicle Tax (ISV) on cars imported from other European Union countries is illegal, concluded the Court of Justice of the European Union (CJEU).
The method of collection was changed in 2021 in Parliament, following a proposal from the Government and the PS, but, most likely, it will have to be changed again, with a partial refund of the tax according to a report by Público.
The court declared that the discount on cylinder capacity and the environmental part must be the same for second-hand cars imported from another country in the European bloc, which is not currently in place as the Tax Authority has applied different rates.
The European Commission must comment on the complaint filed in Brussels through a reasoned opinion that must comply with the CJEU's position. If so, Portugal will still have a few weeks to respond. But, failing to convince European entities, it will have to change the way this tax is charged.
Taxpayers who purchased a used car from another country in the bloc after January 1, 2021, will be able to recover part of the money, as long as they complain to the Tax Authority or challenge it in court. This is said to affect almost 280,000 cars.
does the possibility arise if i bought a new car in Portugal, i paid import tax on a bmw , a mini and a Kia, i also bought a second hand porsche
By REX DAVIS from Other on 10 Feb 2024, 09:12
It is absurd that an EU country,has the audacity to charge taxes on any import from another EU country.
The EU is a single market!
Wake up you inward looking politicians.
By James from Algarve on 10 Feb 2024, 09:43
The European Union aims to enable EU citizens – and legal residents – to study, live, shop, work, and retire in any EU country while enjoying products from all over Europe. To accomplish this, it ensures the free movement of goods, services, capital, and persons in a single EU internal market.
Sounds like a great idea!
By removing technical, legal, and bureaucratic barriers, the EU also allows people to trade and do business freely in this “single market.”
That’s all well and good. But moving beyond principles to practice, let’s see if and how this market actually works. To simplify matters, we’ll consider just two EU members – Portugal and Spain – and one item to be traded: vehicles.
According to the EU’s Competition Commissioner Mario Monti:
“More competition in car distribution leads to lower prices. By finally tearing down remaining obstacles to cross-border vehicle purchases, consumers will make use of the full potential of the single market for car purchases.”
The above quote referred to new EU laws effective October 2003 that would make car sales more competitive throughout member nations.
Even before then, no dealers could be prevented from supplying cars to consumers from abroad, allowing them to make cross-border purchases.
The Commission’s twice-yearly car price report consistently revealed major differences in car prices between EU Member States. A study published for the Commission concluded that the differences couldn’t be totally explained by differences in tax levels.
So, why can’t I buy a car in Spain and register it in Portugal?
Theoretically, I should be able to …
But it just doesn’t work that way.
By Bruce Joffe from Alentejo on 10 Feb 2024, 10:25
Ha ha the PT authorities do what they wish no matter what edict EU makes.
When I lived in Spain, I purchased my car there. When I moved to PT, I had to pay import tax. The car is considered an “import” even though it was owned by me from new and came to PT as part of my possessions.
Totally unfair.
By L from Other on 12 Feb 2024, 11:52
Portugal will just pay the fine and ignore the ruling. Thats because they gain more from the 'illegal' tax than the size of the fine. That's what Portugal always do. Portuguese new and second-hand car dealers will be up in arms and would cause chaos to the car selling industry. That's what Portugal always do.
By David clark from UK on 12 Feb 2024, 15:38
The E U have been fining Portugal for over charging on car duty for years ,but the fine is less than the tax they make .The EU needs to give bigger fines so it’s not worth Portugal over charging on the duty .
By Marie M from UK on 12 Feb 2024, 19:47