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EU Closes Greek, Slovak Car Registration Tax Cases

by Ulrika Lomas, Tax-news.com, Brussels

28 April 2017


The European Commission said it has successfully resolved cases against Greece and Slovakia involving their discriminatory vehicle registration taxes.

In the Slovak case, the Commission said the infringement procedure was initiated because the country's car registration tax did not take into account the real value of second-hand cars purchased in another EU member state. The Commission explained that this resulted in citizens paying a higher tax on such cars than on second-hand cars purchased in Slovakia.

In February, Slovakia amended its legislation to reduce the tax levied on second-hand cars purchased in other member states.

In Greece, the Commission had opened an infringement procedure to ensure the proper implementation of a judgement by the EU Court of Justice on car registration tax. The Commission said the ruling had determined that levying the full amount of registration tax on a car rented or leased by a Greek resident from a company established in another member state – without taking into account the duration of the car lease – was inconsistent with EU law.

Greece has since amended its legislation to provide for a registration tax on cars based on the duration of the lease contract, the Commission said.

TAGS: tax | European Commission | vehicle tax | law | Slovakia | legislation | tax rates | Greece | tax reform | Europe

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