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Greece To Face ECJ On Vehicle Tax Policies

By Lorys Charalambous, Tax-News.com, Cyprus

02 December 2014


The European Commission has referred Greece to the European Court of Justice over its registration tax rules for vehicles leased or rented to Greek residents by non-Greek lessors.

According to Greek law, when a customer resident in Greece leases or rents a vehicle from a lessor established in another European Union member state, registration tax must be paid in Greece in full. However, the Commission said that based on previous ECJ rulings, in Cura Anlagen (C-451/99) and VAV Autovermietung (C-91/10), Greece should only levy tax proportionate to the duration of the vehicle's use.

The Commission said that Greece's tax rules may act as a deterrent to cross-border activity, contrary to the principles of free movement of services as set down in European Union treaties.

Greece failed to response to a reasoned opinion about the matter that was sent in November 2012.

TAGS: court | tax | European Commission | vehicle tax | law | legislation | Greece | legislation amendments | Europe

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