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EU Closes Investigation Into Finnish Car Tax

by Ulrika Lomas, Tax-news.com, Brussels

19 June 2017


The European Commission said it has closed an infringement case against Finland's car tax legislation for rental and leasing vehicles.

In February 2015, the Commission formally requested that Finland amend its legislation. It cited EU Court of Justice case law under which only a proportionate amount of car tax can be levied upon the registration by a Finnish resident of a motor vehicle licensed or rented in another EU member state when the precise duration of the use can be determined, for example, on a car being leased or rented.

Finns were previously obliged to pay the entire amount of car tax upfront and await a refund of the remaining tax once the car was no longer registered in Finland.

The Finnish Government amended its legislation on January 1, 2017. The Commission said the legislation now complies with EU law.

TAGS: tax | European Commission | vehicle tax | law | legislation | Finland | European Union (EU) | Europe

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