# C_2015414EN.01002302.xml

| 14.12.2015 | EN | Official Journal of the European Union | C 414/23 |
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14.12.2015

EN

Official Journal of the European Union

C 414/23

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Action brought on 23 October 2015 — European Commission v Ireland

(Case C-552/15)

(2015/C 414/30)

Language of the case: English

Parties

Parties

Applicant: European Commission (represented by: M. Wasmeier, J. Tomkin, agents)

Applicant:

Defendant: Ireland

Defendant:

The applicant claims that the Court should:

The applicant claims that the Court should:

| — | declare that by levying a full amount of registration tax upon the registration by an Irish resident of a motor vehicle leased or rented in another Member State, without taking account of the duration of the use, where the vehicle is neither intended to be used essentially in Ireland on a permanent basis nor in fact used in that way, and by setting conditions for a refund of this tax which go beyond what is strictly necessary and proportionate, Ireland has failed to fulfil its obligations under Article 56 of the Treaty on the Functioning of the European Union; |
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declare that by levying a full amount of registration tax upon the registration by an Irish resident of a motor vehicle leased or rented in another Member State, without taking account of the duration of the use, where the vehicle is neither intended to be used essentially in Ireland on a permanent basis nor in fact used in that way, and by setting conditions for a refund of this tax which go beyond what is strictly necessary and proportionate, Ireland has failed to fulfil its obligations under Article 56 of the Treaty on the Functioning of the European Union;

| — | order Ireland to pay the costs. |
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order Ireland to pay the costs.

Pleas in law and main arguments

Pleas in law and main arguments

The national legislation at issue

The national legislation at issue

Ireland's Finance Act, 1992 (as amended) provides for the imposition of a tax on the registration of motor vehicles imported into the State. Pursuant to that Act, importers of vehicles are required to discharge, upon registration, the entire tax applicable for permanent registration. This requirement applies to all imported cars regardless of the intended and actual duration of their use in the State and includes cars that are hired or leased from abroad for pre-determined limited periods of time. While the Irish authorities have introduced the possibility to obtain a subsequent refund of excess tax paid, such a refund may only be granted following inspection and exportation of the vehicle at issue. There is no provision for interest to be paid on excess tax which had been retained and a EUR 500 fee is charged for the administration of the refund procedure.

Principal arguments

Principal arguments

The Commission considers that Ireland's system for taxing the registration of motor vehicles imposes a disproportionate cash-flow and financial burden on Irish residents seeking to import hired or leased cars for pre-determined limited periods of time. In the Commission's view, the national rules at issue make it considerably more difficult and costly to hire and lease cars from other Member States than it is to hire or lease cars from undertakings established in Ireland. The Commission submits that Ireland's vehicle registration tax is liable to impede the provision and receipt of leasing and hiring services, is disproportionate, and therefore in breach of Article 56 TFEU.

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