The Tax Authority of Portugal (AT) has been ordered to return €2,631.73 to a foreign resident in the Algarve, following a bad ISV charge on a hybrid imported car.
According to Público newspaper, this amount (€2,631.73) corresponds to 75 percent of the Vehicle Tax (ISV), charged for a plug-in hybrid car that has been imported in 2021. The taxpayer in question paid the full amount of the ISV, but made a complaint, arguing that they were entitled to a 75 percent discount.
The case involved a Mercedes E-Class imported from Germany with CO2 emissions of 44g/km and a range in electric mode of 45-48km in an urban environment.
From the perspective of the car owner, taking into account that the first registration was from 2019, there should be a 75 percent discount on the ISV, as was the law in force until the end of 2020.
According to the ISV law until 31 December, 2020, the plug-in hybrid car would have a 75 percent discount on the ISV, as since 2015, the government has ensured a discount on this tax for hybrids with a minimum duration of 25 km in electric mode.
However, at the end of 2020, under the State Budget OE2021, the law changed: hybrids with a minimum duration of 50 km were entitled to 25 percent ISV, but with a compliance requirement: it is necessary that they get the CO2 increase to 50g/km, otherwise it will be charged at full price.
In this sense, based on the law approved under the 2021 State Budget, the Tax Administration obliged the car owner to pay the ISV at 100 percent, justifying that the car arrived in Portugal in 2021, after the change. In addition, AT argued that the vehicle had an electric range of less than 50km, which does not meet the criteria.
However, the court ruled in favour of the taxpayer, who is now set to receive their money back from the authorities.
Another expat wanting to change Portugals rules and judges give them that chance. Shame on you.!!!!!!!!
By Me from Lisbon on 13 Aug 2021, 08:09
Comments trying to shame an "ex-pat" for changing the rules don't make any sense. There were no rural changes. This is a Portuguese law that has been adjudicated by a Portuguese judge. Clearly the assessor needed better training. Or perhaps, it is OK to just charge it until someone is damaged and then files a suit.
By Steven from Algarve on 13 Aug 2021, 11:06
The expat was from a country that was a true democracy, realize serfdom ended long ago, and has like Sweden and Switzerland, a high degree of personal political involvement. I swear if portgugese started wearing t hurts with S on them it wouldn’t mean there fans of Superman.
Three cheers for the courts. An efficient functional Judiciary has kept both Portugal and Brazil back. Now if Sergio Moro would immigrate to Portugal look out crooked politicians.
By William from Lisbon on 13 Aug 2021, 11:08
Some Portuguese laws should be challenged in court. That said, too many outsiders seem to be certain of their sense of superiority. The Portuguese are well Portuguese, and no outsider will change us.
By Victor from Other on 13 Aug 2021, 13:28
A tale as old as time, the tax authorities assign a year to a vehicle to reap the tax benefits for the government despite paperwork from the country of origin showing the actual first year of registration. The rule is, the vehicle is assigned the year based on the first registration, not the year it was imported. About time to hold their feet to the fire and require honesty.
By Nicole from Algarve on 13 Aug 2021, 19:53
It is interesting to see that readers are quick to complain about expats being 'arrogant' and wanting to 'change Portugal's rules", but nobody seems to mind that it is in fact Portugal wanting to change EU rules: under the rules of the internal market there should be free movement of persons, goods and capital between common market countries. The Portuguese government signed up to this principle many decades ago, and yet maintains the ISV, a convenient cash cow that is in complete contravention of EU law. Portugal has been brought before the European Court for this, lost the case and every now and then Portugal is fined and admonished, and yet the Portuguese government hasn't scrapped this illegal tax. It is not expats challenging the application of ISV that is an outrage: it is the existence of this import tax that is.
By Sam from Algarve on 13 Aug 2021, 22:00
Seems like a couple of CHEGA supporters have decided to voice their prejudice on here!
By Ian from Lisbon on 14 Aug 2021, 06:25