(November 26, 2014)

On November 26, 2014 the European Commission issued a press release announcing that it has decided 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.

According to the European Commission 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. The European Commission states that in its view 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 (see C-451/99 Cura Anlagen and C-91/10 VAV Autovermietung) 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. According to the Commission this may act as a deterrent to cross-border activity, going against the principles of free movement of services set down in the Treaties.

On November 21, 2012, the Commission sent a request taking the form of a reasoned opinion to Greece on this subject, officially asking the Greek authorities to amend the relevant legislation. Since according to the European Commission there have been no changes to the legislation, the Commission has decided to bring the matter before the Court of Justice.

For further information click here to be forwarded to the press release as issued by the European Commission in this respect.

 

Follow International Tax Plaza on Twitter (@IntTaxPlaza)

 

Copyright – internationaltaxplaza.info

 

 

Submit to FacebookSubmit to TwitterSubmit to LinkedIn
INTERESTING ARTICLES