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Finnish Government Faces 70,000 Rebates Following ECJ Case

by Ulrika Lomas, Tax-News.com, Brussels

26 March 2009

The European Court of Justice ruled on March 19, 2009, in the Commission’s case against Finland regarding the discriminatory application of VAT on imported used cars.

The court ruled that the because VAT was only levied on individuals and not companies it was in breach of Article 90 of the EC treaty.

The government has announced that it will refund the 70,000 individuals who imported cars into Finland during 2006-2009, as well as paying 2.5% interest on these amounts. The refunds are expected to be worth EUR50m.

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