Press Release: Taxation: Commission refers Greece to the Court of Justice of the European Union on vehicle registration tax for leased or rented cars

The European Commission decided on the 26 November 2014 to refer Greece to the Court of Justice of the European Union for its failure to amend registration tax rules for vehicles leased or rented to Greek residents by non-Greek lessors.

Under Greek law, if a customer resident in Greece leases or rents a vehicle from a lessor established in another Member State, registration tax needs to be paid in Greece in full. Greece has failed to address the issue of cross-border leasing or renting of cars in its legislation, thereby disregarding European Court of Justice case-law on this matter that requires Member States, in the case of cross-border leasing or rent, to levy a tax proportionate to the duration of the use of the vehicle. This may act as a deterrent to cross-border activity, going against the principles of free movement of services set down in the Treaties.

ESO: Background information: Memo: November infringements package: main decisions http://www.europeansources.info/record/memo-november-infringements-package-main-decisions/

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