Press Release: VAT – Commission takes steps against Austria, Malta and Finland as regards the inclusion of the car registration tax in the amount on which VAT is levied in the cases of supplies of road vehicles

On 31 January, 2008, the European Commission formally requested Austria, Malta and Finland to change their legislation as regards the inclusion of the amount of the car registration tax within the amount on which VAT is levied in the case of supply of road vehicles. The Commission considered that the registration tax should not be included in the taxable amount of VAT. The requests take the form of a reasoned opinion (second step of the infringement procedure provided for in article 226 of the EC Treaty). If the relevant national legislations are not amended within two months in order to comply with the respective reasoned opinions, the Commission may decide to refer the matters to the European Court of Justice.