Portugal Used car tax illegal - EU Court of Justice

in News · 23-06-2016 14:39:00 · 7 Comments
Portugal Used car tax illegal - EU Court of Justice

The European Union (EU) Court of Justice has said that the tax on used vehicles imported into Portugal from another member state violated the rules on the free movement of goods.

The court ruled that Portugal discriminated against used vehicles as regards the devaluation tables it uses.
“Portugal applies the same tax on used vehicles under one year old at the same rate as new vehicles and on vehicles over four years old the rate is 52 percent regardless of their real state”, the court said.
Associations here have since said that the recommendation will only be beneficial to people purchasing cars younger than one year and older than five, with the Finance Ministry also stating that the EU ruling will only affect a small percentage of imported cars.
The EU judgement comes after the European Commission formally requested Portugal to amend its legislation on the taxation of imported second-hand vehicles, arguing that vehicles produced elsewhere in the European Union are being discriminated against as a result of the country’s current legislation.

The EC argued back in 2014 before lodging a complaint with EU courts that the calculation of the taxable value of second-hand vehicles introduced into Portugal from another Member State does not take into account the real value of the vehicle,
The Commission said that “no depreciation is taken into consideration before the vehicle is one year old and no further depreciation is taken into account in the case of vehicles older than five years.”
It explained that this may result in higher taxation than that applied to domestically purchased vehicles.
Currently a brand new car or one that is 11 months old is charged the same tax. Only after a car is a year old is a 20 percent discount awarded on vehicle tax (ISV).
There is then a progressive increase in the discount to be awarded, but after reaching five years, the depreciation stagnates at 52 percent.



Comments:

Hi, I have just been quoted €19,600+ in import taxes to bring a 1995 LHD Jaguar XJS-C into Portugal from Brussels...the car is values at €23,000 and has all import taxes already paid from the USA. I understand other EU states charge upto or around 10% of the value. Other countries also offer Old-timer imports for 30 year old cars. Any new on the EU's actions against Portugal's restrictive practices?

By Ken Bradley from Algarve on 24-02-2020 06:27

Hi,

I'd like to make contact with the someone who commented on this story;

"Any one who payd ISV can go to court for refund. It will take some time, but all the cases against PT ISV tax was won. Its just cheaper for PT government to pay you than do some changes.
BTW I import cars for living. ANy Q, feel free to email me.
by sean from Porto on 10-05-2017 08:32:00"

Is it possible you could provide me with their contact details or send mine on to them?

Many Thanks,
David.

By David McKown from Porto on 30-12-2017 11:27

Any news on this topic?

By John from Lisbon on 10-10-2017 01:53

Any one who payd ISV can go to court for refund. It will take some time, but all the cases against PT ISV tax was won. Its just cheaper for PT government to pay you than do some changes.
BTW I import cars for living. ANy Q, feel free to email me.

By sean from Porto on 10-05-2017 08:32

Is there any movement yet on the request by the EU commission that Portugal amends it's devaluation tables for imported cars ??
I know things happen slowly here but I'm hoping that I won't have to stump up another €850 for my 10 year old Range Rover this August.
Being an eternal optimist I live in hope - but I'll make sure I've got my €850 at the ready come August !!

By Bob from Algarve on 20-02-2017 09:25

If you live here but have a UK registered car, you probably rely on to the authorities turning a blind eye to you not having had it "matriculated" in Portugal.
But all this will change, I am sure, once the UK leaves the EU. The import duty for cars coming from outside the EU is far greater as there is no allowance for age.
So what do you do now? Matriculate the car before the UK leaves would seem to be the most sensible? Knowing a few of those that "duck & dive" with their UK cars I expect them to carry on regardless!

By Percy Bean from Algarve on 26-06-2016 03:01

Thanks for this article. Can this be used by a person living in Portugal today who already paid the tax. When I moved here and brought my car with me from France, they made me pay the tax (3,500 Euros). I then sold the car so I needed the document that this tax was paid officially. However, since it had been my car for 3 years in France before moving here, it was an illegal tax that the inflexible Alfandegas people fought over. I would like to have it reimbursed if possible. It would be a form of justice.

By Glenn from Lisbon on 24-06-2016 01:03
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