WRITTEN QUESTION No. 2333/98 by John McCARTIN to the Commission. Registration tax on vehicles
Date: 1998-07-27
Institutions: European Parliament, MCCARTIN
Subjects: Ireland, application of EU law, free movement of goods, import, motor car, used goods, vehicle registration, vehicle tax













EUR-Lex - 91998E2333 - EN






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91998E2333

WRITTEN QUESTION No. 2333/98 by John McCARTIN to the Commission. Registration tax on vehicles  


Official Journal C 096 , 08/04/1999 P. 0077 





WRITTEN QUESTION E-2333/98by John McCartin (PPE) to the Commission(27 July 1998)Subject: Registration tax on vehiclesIs the Commission aware of the imposition of a registration tax on vehicles imported to Ireland second-hand from other Member States? The Irish Revenue Authorities impose this tax on a notional value which always exceeds the real market value. Does the Commission agree that this tax contravenes the principles of the single market?Answer given by Mr Monti on behalf of the Commission(22 September 1998)The Commission is aware of the imposition of a registration tax on second hand cars in Ireland. Generally the Irish registration tax on passenger cars is charged on the first registration of the vehicle as a percentage of the retail value including VAT (open market selling price). In accordance with the case law of the Court of justice, as confirmed by the judgement of 23 October 1997 in case C-375/95 (Commission v Greece), the registration tax on second hand cars is to be calculated on the basis of the current value of the car taking into account the actual depreciation of the vehicle. With regard to vehicles brought permanently from one Member State into another, a system of taxation can only be considered compatible with Article 95 of the EC Treaty if it is proved to be so structured as to exclude any possibility of imported products being taxed more heavily than domestic products, so that it cannot in any event have a discriminatory effect. In other words Article 95 of the EC Treaty is infringed where the taxation on the imported product and that on the similar domestic product are calculated in a different manner on the basis of different criteria which lead to higher taxation being imposed on the imported product. The value of the imported second hand car should then be compared with second hand cars which are for sale in Ireland. Indeed, the resale price of the latter includes a residual part of the taxes paid at the time of their first registration in Ireland (generally, when the car was new).In the circumstances, it is difficult to conclude from the information given about the calculation of the tax base according to a notional value that the Irish registration tax on imported second hand cars has to be regarded as an infringement of the basic principles mentioned above. If the Honourable Member has knowledge of particular cases, the Commission would like to examine them. It would not fail to take the necessary measures if the principles of Community law were found not to have been respected. In this context the Commission recently adopted a proposal for a Council directive(1) in order to amend existing Community legislation and improve the free movement of persons and vehicles. In the case of transfers of residence from one Member State to another, it proposed that Member States should not impose registration taxes on vehicles brought into their territory.(1) OJ C 108, 7.4.1998.