Portugal has been forced to correct the ISV (Motor Vehicle Tax) for second-hand cars that are imported. However, Portugal has once again been condemned for unduly charging ISV. (ISV is the registration tax)
The Court of Justice of the European Union has once again condemned Portugal for improperly calculating ISV on used vehicles registered in another member state, which it considers to be contrary to EU law, according to ACP.
The complaint made to the Tax Arbitration Court took place in 2021, after a citizen wanted to register a plug-in hybrid car with German license plates from 2018. At the time, the Customs Authority considered paying the full tax rate. The citizen complained and the European Court of Justice ruled in his favor.
According to what has been said…”Member States may not introduce new taxes or make changes to existing taxes which have the object or effect of discouraging the sale of imported products in favor of the sale of similar products available on the national market and introduced on that market before the entry into force of the said taxes or changes”.
The ISV – Vehicle Tax (which replaced the old IA – Automobile Tax – in 2007) – is a registration tax, i.e. it is paid only once when a vehicle is registered for the first time in Portugal, whether it is new or used.